7/9/2024 Item 7
City Council
Item 7 - Purchase and Sale
10 Agreement with Feather
River Land Trust for the
CITY Loyalton Property
1852 RTC 24-640
THE MISSION CITY
July 9, 2024
1 City of
Santa Clara
The Center of What's Possible
Overview
• Bought in 1977 for $1,613,850.
• Property is Approximately 10,310 Acres in size
• Property is broken up into 3 sections:
- Main ranch Section with access from highway 70 near Reno Junction - A land oched secial n Ca no ance witroaces tie Ro Carbage Pit Rd • Historically been used as seasonal grazing land and continues to be used as grazing land
• According to City records, the property was acquired with the intent to develop a geothermal power plant
- Geothermal potential for the land was much lower than anticipated - Other uses for the land were investigated, such as quarrying, wind, and solar power - Some non-traditional ventures that were reviewed included a ski resort and a pheasant farm
2 POST MEETING MATERIAL
1 7/9/2024 Item 7
Block 1
Area: 3,500+ Acres
Loyalton Property Perimeter 19.78+/- Miles
Area: 10,000+ Acres
Perimeter: 51.02+/- miles
Block 3
Block 2
Area: 4,300+ Acres Area: 2,900+ Acres
Perimeter 19.96+/- Miles
Perimeter 11.26+/-
Miles
3 City of
Santa Clara
The Center of What's Possible
Surplus and Sale
• December 14, 2021 - City Council directed staff to develop a strategy for the sale of Loyalton
• March 8, 2022 - City Council voted to Note and File the Strategy and Next Steps for the sale of Loyalton
• The property was appraised at $4,370,000 by Valbridge Property Advisors (April 18, 2022).
• June 27, 2022 - Council Adopted a Resolution declaring the property Surplus Land (SLA process completed January 2023)
• Per Council authority executed a contract with CBRE on August 2023 • Property went on the Market on September 12, 2023
• Received a Letter of Interest (LOI) from Washoe Tribe of Nevada and California (October 30, 2023)
4 2
7/9/2024 Item 7
City of
Santa Clara
The Center of What's Possible
Washoe Tribe Use of Land
• The sale has many benefits for the Washoe Tribe and the area Protect the multiple cultural and historical sites and artifacts on the Property. • Protect species and wildlife on the land - the Loyalton deer her This sale would also go towards the Governors 30 by 2030 initiative • Have also started to work on a visioning plan:
• Some of the key themes include:
• Return/promotion of health of keystone species, wildlife corridors, native plants important for traditional foods, tools, and medicines.
• Gathering place(s) on the land, trails, interpretation, return of ceremony. • Education and training for the Tribe (including younger generation, language, traditional lifeways/culture camps, history, certifications, and climate adaptation) • Economic development, including restoration contracts (fire recovery, erosion, meadows), classes, and career development
• Sacred site protection
Washoe Tribe food sovereignty
5 City of
Santa Clara
The Center of What's Possible
Purchase and Sale Agreement
• Required significant negotiations including change from the Washoe Tribe to the Land Trust
• Purchase Price - $6.0 million subject to buyer's appraisal - Must appraise for $6 million otherwise Buyer has an option to terminate the Agreement - Any sale price below $6.0 million requires Council approval - If the appraisal amount is at least $5 million, the Buyer could still want to move forward • Buyer informed the City that they cannot exceed 20% above appraised value. • Appraisal - Within ten days after the Execution Date, Buyer will select a private state-licensed appraiser who is acceptable to Seller and Buyer's public funding partners)
- Buyer will have thirty (30) Business Days to review the Appraisal - Buyer may elect to terminate this Agreement if the Appraisal (and any updates thereto) are not approved by the Funder
• Closing - On or before 10 months after the execution date 6 3
7/9/2024 Item 7
City of
Santa Clara
The Center of What's Possible
Purchase and Sale Agreement
• Credit for Deposit - If Buyer fails to deliver the Deposit as and when required by this Agreement, Seller, at Seller's sole discretion, may terminate this Agreement
• Deposit - $100,000 applicable to the purchase price
• Diligence Period - The period commencing the Execution Date and ending ninety (90) days after the Execution Date or as extended by Buyer and Seller through mutual agreement in writing
• As-is - Buyer acquires property as-is and releases City from any other obligations upon completion of sale
• Environmental Release - Buyer will indemnify and hold harmless the City from any and all hazardous materials liability, whether hazardous material contamination occurred prior to or after Buyer's purchase City of
Santa Clara
The Center of What's Possible
Recommendation
1. Determine the proposed action is exempt from CEQA pursuant to Sections 15312 (Class 12 - Sale of Surplus Land) of Title 14 of the California Code of Regulations; and
2. Authorize the City Manager or designee to execute a Purchase and Sale Agreement (Agreement) with Feather River Land Trust for the Loyalton Property in the amount of $6 million and on the terms presented and take any necessary actions to implement and administer the Agreement, including, execution of a grant deed and an assignment agreement. 8 7/9/2024 Item 7
City Council
Item 7 - Purchase and Sale
Agreement with Feather
CITY OF River Land Trust for the
Loyalton Property
1852 RTC 24-640
THE MISSION CIT
July 9, 2024
9