29 July 2015

POST announces 74-acre farmland lease with option to purchase in San Gregorio, CA!

The Peninsula Open Space Trust (POST) is pleased to announce the opportunity to lease with the option to purchase 74-acres of farmland, located at 950 La Honda Road in San Gregorio, CA. This prime agricultural property has ample water rights and a farm center. POST is soliciting proposals from individuals interested in leasing the land for productive agricultural operations with the option to purchase the property subject to an affirmative agricultural conservation easement.

The farm property is located in San Gregorio, approximately 1 mile inland from Highway 1with a half mile frontage on the south side of Highway 84, about an hour from San Francisco, Santa Cruz, and Palo Alto. The coastal San Mateo County community has a rich tradition of farming and ranching along with a budding population of new farmers.

To access the full details of the property, map, and text of POST's Request for Proposals, please email mika@cafarmlink.org or log-in to your FarmLink account and look for San Mateo #2114.
About the Property
The former N.D. Muzzi Ranch in San Gregorio has a rich agricultural history and has been farmed since at least the 1940's. Dominic Muzzi farmed the property since 1968, cultivating strawberries, fava beans, English peas, pumpkins, and Brussel sprouts on the 58 acres of cultivated prime soils. Approximately 15 acres on the west end of the farm are in production without the use of sprays this year and were left fallow during the 2014 growing season.

The 74-acres consists of:
  • 58 relatively flat, cultivated acres of Dublin clay with some Corralitos sandy loam soils
  • 3 acre farm center 
  • 3 acre reservoir
  • 10 acre riparian buffer
  • rights to use up to 156 acre-feet of water annually from the San Gregorio watershed
  • rights to store up to 14 acre-feet of water annually "
  • underground mainlines with sprinkler pipe risers and portable laterals/hand line sprinkler pipes 
  • 2 in-stream points of diversion (with 5HP electric pump from primary diversion to reservoir)
  • 18 acre-foot perched, seasonally-filled reservoir with pump station
  • 2 older wells, only one of which is functional with an estimated depth of 160' and production of 15-18gpm flow; water from this well has historically been piped to reservoir, but water quality has never been tested. 
  • 4 PG&E meters (2 3-phase power, 2 single-phase power)

*POST seeks an agricultural operator willing to work with local public agency and non profit conservation partners to improve water quality, riparian habitat, erosion, and irrigation efficiency.
*Preference will be given to applications that include strategies for maximizing efficient use of water.

Lease Proposal Details: 
POST will be offering an initial 2-5 year lease for the entire 74-acre farm property with an option to purchase, by mutual agreement of POST and lessee, at the end of the lease period. The lease will require that the property be maintained in active agricultural production. Length and start date will be negotiated as part of a lease with the RFP awardee(s). Any purchase would be subject to an affrimative conservation easement, limiting development and mandating agricultural production. Terms will be negotiated between parties and an appraisal will determine purchase price. POST is willing to explore creative financing solutions, including- but not limited to - lease to own, equity lease, and seller financing. POST is only interested in applicants with a long-term commitment to the land and willingness to work with public agency partners to put riparian protections in place with terms to be determined and negotiated between parties.

There is a mandatory site tour for prospective operators at 10am on Friday, 14 August 2015. Please RSVP for the tour by 7 August to bwright@openspacetrust.org or (650) 854-7696 x307. Additional information, including sample lease language, previous land uses, and other background will be available at the tour. All interested parties must attend the tour. Please do not try and access the property prior to the site tour as it is an active farm operation.