DERBES INCLUDES VESTED PERMIT FOR 8500 CASE AND PUBLIC TASTING ROOM WITH EVENTS

HEALDSBURG | RUSSIAN RIVER VALLEY AVA

OFFERING MEMORANDUM JOHN BERGMAN Bergman Euro-National 707.887.9822 | [email protected] | bergmanvineyards.com | license# 00340276

ROBYN BENTLEY Country Consultants 707.477.8420 | [email protected] | winecc.net | license# 01175362 DERBES VINEYARDS

- TABLE OF CONTENTS -

PROPERTY PROFILE PAGE 1

PROPERTY OVERVIEW PAGE 2

LOCATION MAP PAGE 3

PARCEL MAP PAGE 4

PROPERTY OUTLINE PAGE 5-6

TOPOGRAPHY MAP PAGE 7

VINEYARD BLOCK MAP & INFORMATION PAGE 8

TERROIR & EXISTING STRUCTURE PAGE 9

PUBLIC TASTING ROOM PAGE 10

WINERY SITE POTENTIAL PAGE 11-12

INFRASTRUCTURE & USE PERMIT PAGE 13-14

WATER SUPPLY | STORAGE | USE BALANCE PAGE 15-16

HISTORICAL INTEREST PAGE 17

RUSSIAN RIVER VALLEY AVA PAGE 18

SONOMA COUNTY AVA PAGE 19 DERBES VINEYARDS | 1

- PROPERTY PROFILE -

PROPERTY NAME: Derbes Vineyards

ADDRESS: 10520 Wohler Road

CITY / COUNTY / ZIP: Healdsburg | Sonoma County | 95448

STATE: California

PRICE: $3,750,000

ASSESSOR’S PARCEL NUMBER: 083-010-027

APPELLATION: Russian River Valley AVA

SUMMARY DESCRIPTION: Located within the Russian River Valley AVA and on a very popular, ultra-premimum loop with spectacular views. Set on 8 acres total with 4.7 +/- acres of high density hillside vineyards with including, , , , and . Outstanding potential with a 2900 +/_ sq ft house which can be converted to a Tasting and Barrel Room (fully vested use permit for a public tasting room with 7 events), a Gravity-Fed Winery Site (fully vested use permit for 8500 case winery) and spring water. Lastly, a lot of the up-front construction has already been done (Wastewater Disposal, Road Encroachment, Sound Wall, Drainage, etc).

ZONING: LIA20, with a use permit

STRUCTURES: House, Barn, Outbuildings

WATER & SEPTIC: Spring water; filled land wastewater disposal for 8500 case winery + tasting room installed DERBES VINEYARDS | 2

- PROPERTY OVERVIEW -

Located within the Russian River Valley AVA and on a very popular, ultra-premimum wine tasting loop with spectacular views. Set on 8 acres total with 4.7 +/- acres of high density hillside vineyards with varietals including,

Chardonnay, Pinot Noir, Pinot Meunier, and Syrah. Outstanding potential with a 2900 +/_ sq ft house which can be converted to a Tasting and Barrel Room (fully vested use permit for a public tasting room with 7 events), a Gravity-Fed

Winery Site (fully vested use permit for 8500 case winery) and spring water. Lastly, a lot of the up-front construction has already been done (Wastewater Disposal, Road Encroachment, Sound Wall, Drainage, etc). DERBES VINEYARDS | 3

- LOCATION MAP - DERBES VINEYARDS | 4

- PARCEL MAP - DERBES VINEYARDS | 5

- PROPERTY OUTLINE - DERBES VINEYARDS | 6

- PROPERTY OUTLINE - DERBES VINEYARDS | 7

- TOPOGRAPHY MAP - DERBES VINEYARDS | 8

- VINEYARD BLOCK MAP & VINEYARD INFORMATION -

PINOT NOIR 1.6 ACRES

CHARDONNAY 1.0 ACRES

PINOT MEUNIER

1.6 ACRES

SYRAH 0.5 ACRES

VINEYARD INFORMATION

VARIETALS CLONES ROOTSTOCK ACRES # OF VINES Pinot Noir 115, 777, 5, 4, 828 101-4 1.6 5311 Chardonnay 78, 95, 96, 4, Wente 101-4 1.0 3006 Pinot Meunier 1, 4 3309 + 101-14 1.6 4883 Syrah 174, 877 101-14 0.5 1547 TOTAL: 4.7 14,747

Spacing is one meter between vines, 1.3 meters between rows, which gives 3113 vines/acre

* NUMBERS PROVIDED ARE APPROXIMATE. BUYER IS ENCOURAGED TO DO THEIR OWN DUE DILIGENCE* DERBES VINEYARDS | 9

- & EXISTING STRUCTURE -

High-density Spacing Spring-fed 3113 Vines / Acre Irrigation

VINEYARD TERROIR

South-southwest facing hill | (Level 2-3 Hillside Ordinance) Classic Russian River Valley cool climate | (Pacific Ocean fog dominates) Sandy loam with aggregates | Soils tested well - minimal amendments

EXISTING STRUCTURE - MAIN BUILDING & DECK

2900 +/- sq ft, built into the hillside 3 Bed, 2 Bath upstairs Offices, storage, etc. downstairs Spacious deck DERBES VINEYARDS | 10

- PUBLIC TASTING ROOM - POSSIBLE CONVERSION OF UPPER LEVEL AND DECK

ada bathroom by removing shower, replacing lav & toilet; add handbars

VESTED USE PERMIT FOR PUBLIC TASTING ROOM, 7 EVENTS

PERMITTED TASTING ROOM USE, OPEN TO PUBLIC: 7 days / week | 10 am - 5 pm 40 visitors/day in Phase 1, if desired (lower level) 80 visitors/day in Phase 2 (upper level) Closed to the general public on special event days

PERMITTED EVENTS: 7 max per year, including industry-wide events lower level of house can become a barrel room, or remain offices (5) 10 am - 5 pm + (2) 10 am - 10 pm 40 members in Phase 1, if desired, including staff 50 members in Phase 2 including staff Limited by simultaneous parking (21) No outdoor music Fire hydrant, lane, and turnaround sites available Estimated 12,500 gallon fire tank site available DERBES VINEYARDS | 11

- WINERY SITE POTENTIAL -

WINERY SITE WITH EXISTING BUILDINGS

MAIN BUILDING

BARN DERBES VINEYARDS | 12

- WINERY SITE POTENTIAL -

CRUSH PAD (ELEVATED) TANKS | BARRELS CASE GOODS

WINERY SITE WITH EXISTING BUILDINGS - assuming new owner demolishes existing barn

VESTED USE PERMIT FOR 8500 CASE WINERY (POSSIBLE GRAVITY-FLOW CONSTRUCTION) PERMITTED USE: 8500 cases (1000 from estate vineyards) Mon-Fri 7 am - 7 pm (bottling > 8 am) Crush 7 days/wk (crusher > 8 am) Night picks scheduled for > 7am delivery Phase 1 (if desired) - mobile bottling; Phase 2 - bottling line indoors Truck staging area under Bay trees Pomace tilled into fields

BARN DERBES VINEYARDS | 13

- INFRASTRUCTURE AND USE PERMIT CONDITIONS SATISFIED -

WASTEWATER SANITARY DISPOSAL (settling tanks stubbed up awaiting winery hookup)

AASHTO ENCROACHMENT (includes call box, openers, cameras)

260’ SOUND WALL

AASHTO ENCROACHMENT SOUND WALL

PRE-APPROVAL FOR UV WATER - water was monitored for one year (no E. Coli, metals, nitrates, etc.)

It appears that the Derbes Vineyards (10520 Wohler Road, Healdsburg – UPE09-0037) has submitted enough of the Division of Drinking Water’s domestic water supply permit application packet that a permit will be issued when construction is complete.

SANITARY ENGINEER Division of Drinking Water State Water Resources Control Board T: (707) 576-2764 | F: (707) 576-2722 50 D Street, Suite 200, Santa Rosa, CA 95404 www.waterboards.ca.gov

BARN DERBES VINEYARDS | 14

- INFRASTRUCTURE AND USE PERMIT CONDITIONS SATISFIED -

5K FORKLIFT with side-shift and pneumatic tires”

CRAWLER TRACTOR with sprayers and mower

DRAINAGE FOR LEVEL 2-3 HILLSIDE ORDINANCE 500 GALLON PROPANE (see below) (owned)

GEOTECH & SOUND REPORTS

BARN DERBES VINEYARDS | 15

- WATER SUPPLY | STORAGE | USE BALANCE -

SPRING 1 CISTERN 5000 GALLON

SUPPLY

SPRING 1 ON THE PROPERTY HAS BEEN TESTED FOR PRODUCTION RATE: Aug 2003: Weeks Well & Pump (by pumping) 5 gpm (7200 gpd) Aug 2006: Owner, by overflow 5 gpm (7200 gpd) Feb 2014: Owner, by pumping 5.1 gpm, average during recharge

SPRINGS 2, 3, AND 4 ON THE PROPERTY ARE GANGED TOGETHER AND DEDICATED TO AG USE. They have been tested for production rate: Aug 2006: Owner, by overflow 2.5 gpm (3600 gpd) May 2009: Owner, by overflow 2 gpm (2880 gpd) USES

VINEYARD USE: A 4.7 acre vineyard was planted in 2007. The owner’s experience has been 7700 gpd, consistent with Region 1 . 2880 of this is supplied directly by springs 2, 3, & 4 to the vineyard blocks south of the driveway. This leaves 4820 gpd to be supplied by spring 1.

WINERY USE: 8500 cases X 2.4 gpd X 1.5 peaking ÷ 45 day crush period = 680 gpd DERBES VINEYARDS | 16

- WATER SUPPLY | STORAGE | USE BALANCE -

SPRING 1 CISTERN 5000 GALLON

USES - CONTINUED

SANITARY USE: The worst case use in the phased developments is that of the current three bedroom residential use, 360 gpd. Current: 3 bdr X 120 gpd = 360 gpd Phase 1 (if desired): 2 bdr X 120 gpd = 240 gpd (includes owner/workers) + 40 visitors/day X 2.5 gpv = 100 gpd + 1 worker X 15 gpw = 15 gpd = 355 gpd Phase 2: 80 visitors/day X 2.5 gpv = 200 gpd + 2 workers X 15 gpw = 30 gpd = 230 gpd THE TOTAL DEMAND ON SPRING 1 IS: vineyard: 4820 gpd winery: 680 gpd sanitary: 360 gpd 5860 gpd BALANCE

SPRING 1 PRODUCTION: 7200 GPD SPRING 1 DEMAND: 5860 GPD RESERVE: 1340 GPD DERBES VINEYARDS | 8

- HISTORICAL INTEREST -

HISTORICAL INTEREST - DERBES VINEYARDS

The main structure was built ~1880 as a mule barn, the mules watered by the onsite spring.

These mules pulled hops up the hill through the property in the days before the Wohler Bridge was built (1921).

Most of what is the Russian River Valley today used to be the Wohler Ranch.

There were eight hop kilns across the street.

The mule barn became the residence of the foreman of the Wohler Ranch.

Joe Rochioli Sr. lived in the house in his days as foreman.

When the hops market declined, it was Rochioli and a handful of others who had the vision to plant Burgundy grapes in the hilly Middle Reach along the Russian River.

Today, Russian River Valley is the premier viticultural area of Sonoma County, with the Westside and Eastside wine tasting routes the most popular. Wohler Road connects the two routes, and is the southern entry point. DERBES VINEYARDS | 18

- RUSSIAN RIVER VALLEY AVA MAP - DERBES VINEYARDS | 19

- SONOMA COUNTY AVA MAP -