Posted:09/12/2021
Agreement Clears Path for 630,000 SF Project on City Land
The City of Elk Grove has approved the sale of approximately 45 acres of city-owned property at 10251 Grant Line Road to Grapevine Texas-basedKubota Tractor Corporation, a subsidiary of Japan-based Kubota Corporation. Last week, following its vote in August approving the project, the Elk Grove City Council unanimously approved a purchase and sale agreement that paves the way for Kubota to take title to the property and commence construction of its approximately 630,000 square foot Western Distribution Center.
"This is a great win for Elk Grove and the Sacramento region," said Elk Grove Mayor Bobbie Singh-Allen. "It's not every day a city attracts $60 million of foreign and domestic investment to its community. This was a competitive multi-city and state search, and we are pleased to have come out on top and to be able to welcome a fantastic company like Kubota to our city and region" Mayor Singh-Allen said.
Kubota, a publicly traded multinational manufacturer of tractors and heavy equipment for the construction and agricultural industries, will build only its fifth such US facility in Elk Grove. The project will be Kubota's hub for western states distribution of its products as well as home to the company's western division offices and "Kubota University," a training and education facility. The approximately $60 million project will generate more than 125 permanent jobs in addition to over 400 temporary construction jobs. The project will kick start development of roughly 4 to 6 million square feet of construction in the city's newly annexed 380-acre industrial park south of Grant Line and Waterman Roads.
"As we grow our business, Elk Grove allows us to remain close to our existing employee base while we expand our operations. Furthermore, the City of Elk Grove has been a fantastic partner through this process," said Kyle Hagen, Director, Western Division Manager for Kubota Tractor Corporation. "They've had a team of responsive staff helping navigate a fairly complex transaction. And with support from local Developer Gerry Kamilos, I couldn't have asked for a better combination of partners to see this project through," said Hagen.
The project was led by the city'sOffice of Economic Development. The city's Development Services Department facilitated project approvals and environmental review in only four months. Elk Grove's regional partner, theGreater Sacramento Economic Council, helped Kubota obtain a critical Cal Competes tax credit from theCalifornia Governor's Office of Business and Economic Development. The company is targeting a spring 2022 opening.
"Growing tradable sector jobs with world-class companies like Kubota is a top priority for the Greater Sacramento region. Elk Grove is a key partner in those efforts and they continue to bolster the Greater Sacramento region. This decision shows the country we can compete on a global and national level. Thank you to Elk Grove's leadership and economic development team, including our board member Mayor Singh-Allen, for their hard work to bring such a transformational company to the region," said Barry Broome President and CEO of the Greater Sacramento Economic Council.
About the City of Elk Grove
Elk Grove is a high-quality suburban community of approximately 178,000 people located 14 miles south of the California State Capitol in the State's affordable Central Valley. Elk Grove is a young, ethnically diverse, modern city that incorporated in 2000. Elk Grove is a family- and business-friendly community with low crime, excellent schools, over 100 community parks, excellent dining and shopping options, numerous annual events and festivals, and over 270 sunny days per year. Major corporations like Kubota, Apple, Amazon, AllData, and the State of California call Elk Grove home. Elk Grove is governed by a five-member City Council consisting of the Mayor and four Council members and is served by the highly regarded Elk Grove Unified School District and Cosumnes Community Services District. Visit us atinvestelkgrove.org.
About Kubota Tractor Corporation
Kubota Tractor Corporation, Grapevine, Texas, is the U.S. marketer and distributor of Kubota-engineered and manufactured machinery and equipment, including a complete line of tractors of up to 200 Gross hp, performance-matched implements, hay tools, compact construction equipment, consumer lawn and garden equipment, commercial turf products and utility vehicles. For product literature or dealer locations, contact: Kubota Tractor Corporation, 1000 Kubota Drive, Grapevine, TX 76051, (888) 4-KUBOTA [(888) 458-2682], Ext. 900, or visitKubotaUSA.com.
About the Greater Sacramento Economic Council
The Greater Sacramento Economic Council is the catalyst for innovative growth strategies in the Capital Region of California. The organization spearheads community-led direction to retain, attract, grow and scale tradable sectors, develop advanced industries and create jobs and investment throughout a six-county region. Greater Sacramento represents a collaboration between local and state governments, market leaders, influencers and stakeholders, with the sole mission of driving inclusive economic growth. The Greater Sacramento region was founded on discovery, built on leadership and fueled by innovation. Visit us atgreatersacramento.com.
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