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Santa Rosa eyes purchase of former dairy near sewage plant

The Llano sewage treatment plant seen from the Peters Dairy, near the intersection of Llano Road and Highway 116. March 21, 2012. (Jeff Kan Lee / PD)

By KEVIN McCALLUM
THE PRESS DEMOCRAT

Santa Rosa has renewed its interest in buying a former dairy to create a buffer zone at the regional sewage treatment plant on Llano Road.

The Board of Public Utilities has long been interested in acquiring the 277-acre Peters Dairy to prevent additional homes from being built on the property.

The last time the city considered buying the land was in 2009, when embattled financier Clem Carinalli owned it. He was trying to sell it to the city for $9.5 million and later, as the real estate market deteriorated, $6.5 million.

The city passed on the property at that time, citing the price and a desire to avoid the impression it was bailing out Carinalli, whose highly leveraged real estate empire collapsed as property values plunged and payments to investors ceased.

As part of Carinalli’s ongoing bankruptcy, the property is now owned by the lender American AgCredit, which loaned Carinalli $3.2 million on the property in 2007, according to county land records.

Carinalli acquired the land, which is close to where he grew up, after foreclosing on loans he made to the previous owner, Curtis Clemmers, who had planned to develop vineyards on it.

Efforts by the bankruptcy trustee to sell the property as three separate parcels for a total of $6.7 million failed last year, and the full property is now being offered for $3.95 million.

The lowered price has piqued the city’s interest. The Board of Public Utilities voted last week to enter into negotiations with American AgCredit, under the holding company Heartland Recovery California F#1, about a possible purchase.

The city has since sent an offer letter to the lender. The confidential bid is subject to approval by the BPU board and the City Council, said Josh Maresca, the city’s right-of-way agent.

The dairy is no longer in operation, but part of the property continues to be leased as pasture, Maresca told the board. There also are four rental homes on the property and a cellular tower.

The property has previously been marketed as suitable for as many as seven “McMansions” with “little hobby vineyards,” Maresca told the board.

That’s what the city wants to avoid. If such homes were built near the plant, future neighbors might complain about noise, odors and glare from plant operations and try to force the city to spend millions in upgrades.

In the past, the city has explored partnerships with groups such as the Laguna Foundation, Sonoma Land Trust and the Sonoma County Open Space District to preserve the property, which straddles the Laguna, Maresca said. The city could still partner with such groups, he said.

You can reach Staff Writer Kevin McCallum at 521-5207 or kevin.mccallum@pressdemocrat.com.





7 Responses to “Santa Rosa eyes purchase of former dairy near sewage plant”

  1. brown act jack says:

    Just ask them where they are going to get the money for that. The user rates are limited to providing services and retiring bonds. How would that land provide services to the rate payers?

    Ask them quick before the change the city charter and are allowed to use the funds for anything they want to use it for.

  2. Jim Bennett says:

    I know, run the show like a corporation, yeah, with the People as the shareholders.

    An honest well run company might want all the shareholders to know what business they’ve all invested and engaged in.

    More monopolizing, meddling in what should a free market landscape.
    More deliberate crashing.

    A solution searching for a problem.

    We’re spending on that which shouldn’t be the domain of our…’company’.

    Fix the roads and look after our schools you traitors.

  3. AL COHEN says:

    “What a bargain,only about $4 million for a piece of worthless land.Something smells here and it’s not the sewer plant.

  4. Rydin Shotgun says:

    What the hell is wrong with these fools? The city is virtually, if not literally, broke with unfunded pension liabilities and they want to buy a piece of property for a buffer zone?

    In case these idiots have not recognized NOBODY is building houses. You would think they would know since they issue the building permits.

    Also if you are stupid enough to buy a house next to a sewage plant you deserve the smell.

  5. Grey Whitmore says:

    Seems a sensible position for the City of Santa Rosa to take.

    Spend a few million now and avoid the hassle and additional millions when some fly-by-night developer develops the land and sells the homes to folks who will then complain and cost the city millions in retrofits.

  6. Money Grubber says:

    Sounds like a great idea !

    Plant some tall, tall bushes around the perimeter and install a long, long drive way. Add a surveillance video to add advance notice of approaching civilians.

    It’ll be a great place for various city vehicles & bureaucrats to hide out during the “work” day.

  7. The Hammer says:

    Why? It will just lead to higher sewer rates. The rates are too damn high now!