What would YOU do?

[Gayle Eisner]

Greetings:

I own a sfr and a ADU in Moss Landing, CA. That is Monterey, CA county... It was a 1031 exchange. As well as another property in Santa Clara Co, a great duplex. (BP please add Monterey to your list of cities). My dilemma is that within the last 2 years TESLA/PG&E have moved in to the tiny community of 300 residents. The area is a harbor with a beautiful beach, seals, whales, otters and lots of tourism and mixed uses. Well, TESLA/PG&E have partnered to purchase the old power plant. It has been partially demolished and they are adding a host of unsightly industrial bldgs comparable to an Oil Refinery. They claim to be storing lithium batteries for power production via AI for PG&E but they claim their goal is to be the "Biggest Lithium Battery Storage Facility in the World". (see attached article)

They are quietly buying properties behind the current the facility. There has been had two lithium battery explosions/fire emergencies in the last 2 years.  It is becoming extremely unsightly as they continue to build and will eventually bring tourism/desirability down (in my opinion).  It makes me very uneasy about my investment future.

QUESTION: Should I sell, do another 1031 exchange, or keep as a rental?  Is it a good time to sell?  Currently, it is a very desirable location between Santa Cruz, CA and Monterey and gets great rent!  A couple of the adjacent cities are planning on building 2500 new homes in the area...not sure of the impact as there is a water shortage due to salt water intrusion.  I fear poor planning on the horizon...

Any input/recommendations  greatly appreciated...