Kubota land purchase approved by Elk Grove City Council, construction of $60 million facility to start this month

During their Wednesday night meeting, the Elk Grove City Council approved the sale of city-owned property to Kubota Corporation, paving the way for the Japanese-based company to build and operate a distribution and assembly facility.

By a 4 - 0 vote, City Councilmember Stephanie Nguyen was absent, the city council approved the sale of 43.76 acres of the 96-acre parcel for $5.15 million. The parcel is located in recently annexed property on the south side of Grant Line Road near Waterman Road and has been owned by the city since 2014.

Kubota is relocating and expanding its current operation in Lodi, and the new facility will employ up to 150 workers. Construction of the 631,465 square foot facility, estimated at $60 million, will start within two weeks and employ 400 temporary construction workers.   

The parcel was purchased in 2014 for $4.4 in an effort led by former Elk Grove Mayor Gary Davis to build a soccer stadium with estimated costs up the $125 million. Davis intended to recruit Major League Soccer to award an expansion franchise to Elk Grove and build additional fields for youth soccer clubs.

After that plan collapsed, there was discussion of making the site the permanent home of the Sacramento County Fair, but that failed to materialize. Last year the city changed the zoning on the parcel and declared it surplus property eligible for sale.

The sale portion of the parcel was valued at $1.79 million. The proceeds from the sale will be allocated to the city's economic development fund. 

During their deliberations on the sale, council members expressed untypically subdued comments about the sale and construction of the facility. District 2 Councilmember Pat Hume noted Kubota will be a catalyst for non-residential development in the city's south area and good for the Sacramento region.

"I'm excited that Kubota has decided to remain and expand in the region," Hume said. "It's a win for us, it's a win for the region, it's a win for California."    

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