REPORT TO COUNCIL
SUBJECT
Title
Action to Delegate Authority to the City Manager to Execute a First Amendment to the Agreement for the Purchase and Sale of Property with Feather River Land Trust for the Loyalton Property to Extend Escrow
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara (City) owns and maintains approximately 10,270 rural acres of undeveloped land (Property or Loyalton Property) in Lassen and Sierra Counties near the California-Nevada border. More specifically, the Property is located in northeastern California, about 30 miles north of Truckee, CA, 110 miles northeast of Sacramento, CA, and about 20 miles northwest of Reno, NV. The Property is commonly referred to as the Loyalton Ranch Property.
On July 9, 2024, the City Council authorized the City Manager to execute a Purchase and Sale Agreement (Agreement) with Feather River Land Trust (Trust) for the Loyalton Property in the amount of $6 million and on the terms presented and to take any necessary actions to implement and administer the Agreement, including execution of a grant deed and an assignment agreement.
DISCUSSION
The City and the Trust executed an Agreement for Purchase and Sale of Property dated July 18, 2024 (“Agreement"), for the Trust’s purchase of the Loyalton Property from the City. The Agreement has a closing date 10 months after the agreement execution date. As authorized under the agreement, the City and Trust agreed to extend the term by another 120 days until September 16, 2025, to allow the Trust to obtain approvals from the California Department of Fish and Wildlife (CDFW), which is providing funding for this purchase. Throughout this period, the Trust has been working with CDFW and requested that the City extend the closing date by another five (5) months in order to accommodate the Wildlife Conservation Board, which will likely vote on the funding at its November 20, 2025, meeting. This approval is critical as the CDFW will provide the majority of the funding for the purchase.
As the Trust has been taking necessary actions to complete this purchase, staff recommend that the City Council authorize the City Manager to negotiate and execute the First Amendment to the Purchase and Sale of Property Agreement in order to extend the closing date to February 16, 2026, or such other date mutually agreeable to the City and the Trust in order to accommodate the CDFW’s approval process.
ENVIRONMENTAL REVIEW
The City Council has already determined that the purchase and sale of the Loyalton Property is exempt from the California Environmental Quality Act (“CEQA”) on July 9, 2024 (RTC 24-640). Therefore, no further environmental review is required.
FISCAL IMPACT
There is no fiscal impact to extending the closing date. Funding for the closing costs related to the sale is available in the Electric Utility Fund, and the sale proceeds will be incorporated into the SVP budget upon finalization of sale.
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Delegate authority to the City Manager or designee to execute a First Amendment to the Agreement for the Purchase and Sale of Property with Feather River Land Trust for the Loyalton Property extending the Closing Date until February 16, 2026,to allow for the approval and implementation of the necessary state agency financing, subject to the review and approval as to form by the City Attorney, and to allow the City Manger to extend the Closing Date another six months so long as the City Manager determines that the Trust continues to proceed in good faith to obtain the necessary approvals for state financing.
Staff
Reviewed by: Nico Procos, Director of Silicon Valley Power
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement for Purchase and Sale or Property
2. Proposed First Amendment to Agreement for Purchase and Sale or Property