Elk Grove purchases 63 acres of land for $5.1M with plans to annex it
Elk Grove purchased 63.8 acres of land on the southeast edge of the city planned for future annexation.
The property, located at 10171 Grant Line Road and owned by 144-year-old cattle ranch Mahon Ranch, cost the city $5,112,600 plus an additional estimated $12,000 in closing costs.
The City Council approved the purchase by a 4-to-0 vote at its April 22 meeting. Mayor Bobbie Singh-Allen was absent.
The land, currently on the city’s southeast edge next to Kubota’s distribution center, is slated for annexation into Elk Grove, though it has not yet been approved, the city’s Economic Development Director Darrell Doan said at the meeting.
Elk Grove previously annexed 382 acres of land in the area deemed as within the city’s “sphere of influence” by the Sacramento Local Agency Formation Commission. This property is part of 189 acres that “may be annexed in the future,” according to the staff report.
“The overall purpose of this acquisition is to expand the city’s land holding for future opportunities,” Doan said at the meeting.
While there is no timeline for annexation, Doan told The Sacramento Bee that the city is open to and considering multiple uses for the property, including for sports, recreation, entertainment and industrial uses.
The city considers this purchase to be a “strategic forward-looking acquisition,” Doan said, because the city has a good relationship with the seller and negotiated a good price for the property.
“It makes sense for the city to acquire it given the property’s adjacency to the city limits and other land we own, its consistency with the city’s General Plan, and its location within a designated future annexation area,” Doan said.
If annexation did not happen, Mahon Ranch agreed to buy back any unannexed land for $77,000 per acre, according to the staff report. Mahon Ranch will lease back the land to continue grazing for $4,850 per year until future plans for the parcel are made.
It is located approximately 1.2 miles from the site of Elk Grove’s future permanent homeless shelter and 2.1 miles from Sky River Casino, which broke ground on a new hotel and resort Monday.
Escrow is set to close on the property purchase at the end of June, Doan said.
