At tonight’s city council meeting the Elk Grove City Council will consider a staff proposal to consider selling all or part of the nearly 100 acres of city-owned land south of Grant Line.
The land was purchased in August of 2014 for $4,000,000. The location is the southeast Grant Line and Waterman Roads. The land was initially considered for a multi use sports complex. Since the land is outside the city limits, the city was required to add the land to its “Sphere of Influence” (SOI) and annex the land into the city. SOI portion was approved by the Local Agency Formation Commission (LAFCO) in 2019. LAFCO will be considering the annexation portion in June.
The proposal to sell the land is part of a discussion with the Kubota Corporation to locate their western division operations to Elk Grove. Kubota would purchase 60 acres of the parcel. The remaining 40 acres could be sold to PDC Sacramento, LPIV, LLC, an affiliate of Panattoni Development Corporation.
According to the staff report, the sale of the land could result in a net revenue gain of $11-15 million for the city.
From the city staff report:
For the Kubota project to proceed, annexation must be finalized, entitlements
and building permits must be ready to issue, and the City Council must
approve a Purchase and Sale Agreement followed by close of escrow and
conveyance of title. These actions are expected to be completed in the next
60 to 90 days. Given that Council previously directed staff to surplus the
property and explore sale and development options for a portion of the
Sports Complex property for industrial projects, and that these actions are
close to being completed, staff is operating under the assumption that
Council wishes for staff to bring the Kubota Purchase and Sale Agreement
forward for its consideration and, if approved, to consummate the