Commercial Real Estate in Navarro: Timberland, Floodgate and the Navarro River

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Navarro is the smallest and northwesternmost of the four Anderson Valley towns on Highway 128, where the valley narrows into redwood country on the way to the coast. Commercial property is scarce: a few roadside buildings in town, the long-established commercial stop at Floodgate just south, and vineyard, ranch and timber parcels around them. Navarro is unincorporated, has no public water or sewer, and sits in a watershed under state water quality plans, so commercial use here is about what Mendocino County zoning, a well and a septic system will allow.

Who controls the parcel

Mendocino County Planning and Building Services applies Division I of Title 20, the Inland Zoning Code, updated in full on September 10, 2024 according to the state notice of determination. Policy comes from the Anderson Valley section of General Plan Chapter 6, which describes Navarro as residential with limited commercial uses and identifies Floodgate, south of Navarro, as a commercial area.

The Anderson Valley Community Services District (AVCSD) provides fire protection. LAFCo’s 2014 service review lists stations at Navarro and Rancho Navarro among the district’s nine, and says AVCSD does not provide water or wastewater service. LAFCo’s 2015 sphere update adds that the Navarro station is owned by Mendocino Redwood Company and, quoting the General Plan summary, that much of the property in and around Navarro is owned by a large industrial timber company. That ownership pattern is the main reason commercial land in Navarro is so limited.

Navarro zoning for commercial, industrial and mixed use

Parcel zoning was not verified for this page. These inland districts are the ones that matter around Navarro; confirm with a County Letter of Zoning.

District	Intended uses	Notes for Navarro
TPZ Timberland Production (Ch. 20.068)	Growing and harvesting timber	160-acre minimum; general cottage industry by administrative permit; campgrounds and limited lodging by use permit, only after a finding of compatibility with timber
F-L Forest Land (Ch. 20.064)	Forest uses on smaller or non-TPZ timberland	Resource use first
A-G Agricultural (Ch. 20.052)	Vineyards, orchards and ranches	40-acre minimum; winery packing and processing permitted; farm sales by administrative permit
R-C Rural Community (Ch. 20.084)	Mixed homes, shops and limited industry	Outside water and sewer districts, 40,000 sq ft minimum lot
C-1 / C-2 Commercial (Ch. 20.088, 20.092)	Local and general commerce; C-2 permits lodging	Commercial lots outside water or sewer districts need 40,000 sq ft

The TPZ chapter is the one a Navarro buyer is most likely to meet. Its purpose is timber growing and harvesting on land taxed for that use. Forest production and processing of all types is permitted, and the County may not grant any use permit until it finds the use compatible with growing and harvesting timber. Setbacks are 50 feet and height is 35 feet. On farm land, the A-G chapter permits winery packing and processing outright. In the town districts, R-C, C-1 and C-2 require larger lots because Navarro has neither water nor sewer district service.

What business uses fit in and around Navarro

In town and at Floodgate. CP-AV-1 concentrates new development in the four Anderson Valley towns, Navarro included, and discourages new retail outside them. A store, cafe or service business belongs in Navarro itself or at the established Floodgate stop, not on open highway frontage.
Visitor uses. CP-AV-10 supports commercial uses that serve residents and visitors, and CP-AV-9 supports tying agriculture to tourism. Small lodging or campgrounds on resource land need a use permit.
Wine and agriculture. CP-AV-7 promotes agribusiness and wine production. Winery processing is permitted on A-G land.
Cottage industry on timberland. General cottage industry is allowed by administrative permit in TPZ, which can suit a craft shop or small studio tied to a rural home.
Hydrants. CP-AV-13 supports community fire hydrant systems in the four towns; until one exists, on-site water storage for fire is a practical cost of any commercial building.

The Navarro River and site constraints

Navarro lies on the Navarro River, which the North Coast Regional Water Quality Control Board’s Navarro River TMDL page says is on the federal 303(d) list for excess sediment and high water temperature. EPA established sediment and temperature TMDLs in December 2000, and the regional board adopted Resolution R1-2004-0087 in November 2004 covering the sediment TMDL. In practice, that means grading, road work, timber operations and vineyard conversion near the river get water quality attention.

The General Plan backs that up. CP-AV-18 protects the Navarro River watershed, Action CP-AV-18.1 supports updating and carrying out the Navarro River Restoration Plan, and CP-AV-21 limits hillside development that causes excessive grading. The plan also notes the valley’s highly erodible soils and that Highway 128 carries log trucks. Action CP-AV-11.1 supports small, decentralized water and wastewater systems for Navarro and the other towns, but none exists, so every business relies on its own well and septic.

Transfer tax, business tax and property tax

Navarro has no city government, so only the county transfer tax applies. Fidelity National Financial’s transfer tax guide (rev. January 2026) lists Mendocino County at $1.10 per $1,000, customarily paid by the seller. The County Recorder collects the tax without posting a rate. Lodging and campgrounds remit transient occupancy tax and a Business Improvement District assessment through the Treasurer-Tax Collector. A change of ownership generally triggers Proposition 13 reassessment; TPZ and Williamson Act land are valued under separate rules, so ask the Assessor.

Due diligence that matters in Navarro

Confirm whether the parcel is TPZ, F-L, A-G or a town district, and whether any timber harvest plan affects it.
Test well yield and quality; there is no public water.
Confirm septic capacity for customers and staff.
Review grading and road history in light of the Navarro River sediment TMDL.
Plan on-site fire water storage and check AVCSD coverage.
Work through our commercial due diligence checklist.

Questions people ask

Is there much commercial property in Navarro?

Very little. The General Plan describes Navarro as residential with limited commercial uses, plus the Floodgate commercial area to the south.

Why is so much land around Navarro timberland?

LAFCo, citing the General Plan, notes that much of the property around the community is owned by a large industrial timber company.

Can I build lodging on TPZ land?

Limited lodging and campgrounds need a use permit, and the County must first find the use compatible with timber growing and harvesting.

What is the minimum lot size in TPZ?

160 acres, with one home per legal parcel as the base.

Why does the Navarro River matter to a buyer?

It is listed as impaired for sediment and temperature, so grading and road work near it draw water quality review.

Who provides fire protection in Navarro?

The Anderson Valley Community Services District, which has stations at Navarro and Rancho Navarro.

Does Diamond handle commercial property in Navarro?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Navarro.

Sources & notes

Parcel zoning in Navarro and Floodgate was not verified. This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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