TO: Board of Supervisors
FROM: Brian D. Bordona, Director Planning, Building and Environmental Services
REPORT BY: Daniel Zador, Planner II
SUBJECT: 2025 Williamson Act Agricultural Preserves and Contracts
RECOMMENDATION
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Adopt a Resolution establishing certain Williamson Act Agricultural Preserves (Types A & H); and approve and authorize fourteen (14) new contracts as identified in the attached Resolution, which includes recission of two (2) existing contracts and replacing them with two (2) new contracts. (Fiscal Impact: Less annual property tax revenues; General, Library and Fire Funds; Not Budgeted; Discretionary)
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BACKGROUND
The California Land Conservation Act (CLCA) of 1965 and County Participation:
The California Land Conservation Act (CLCA), or Williamson Act, allows local governments to enter voluntary contracts with landowners to restrict land to agricultural or related open-space uses. In return, landowners receive reduced property tax assessments based on agricultural value rather than market value. Under Government Code Section 51230, counties may establish agricultural preserves by resolution after a public hearing, and then enter into preserve contracts pursuant to Section 51240.
Napa County has participated in the Williamson Act program since 1969 as a key tool for preserving agricultural lands consistent with the County’s agricultural heritage and General Plan goals. These include Goal AG/LU-1, which prioritizes agriculture as the County’s primary land use, and Policy AG/LU-6, which supports tax assessment policies that reflect long-term agricultural zoning and the limited public services agriculture requires.
County rules require each contracted property to constitute its own CLCA preserve. Eligibility is based on parcel size and bona fide agricultural use, as determined by PBES in coordination with the Agricultural Commissioner (see attached memo). Please note that the application referenced in line item 9 in the Ag Commissioner memo was put on hold at the request of the applicant/property owner because they have decided to pursue a lot line adjustment prior to proceeding with the contract, as reflected in the map and Resolution.
To qualify, a parcel must meet minimum size requirements and contain an agricultural use defined in Government Code Section 51201(a). Prime agricultural land must be at least 10 acres; non-prime land (e.g., grazing land) must be at least 40 acres.
The County currently offers three contract types: Type A, Type C, and Type H. Type A and C apply within the Agricultural Preserve (AP) zoning district, while Type H applies within the Agricultural Watershed and Open Space (AWOS) district. Type C contracts allow parcels between 5 and 10 acres to be enrolled under specific conditions, including at least 75% of the parcel in commercial agriculture and contribution to crop diversity in Napa County. All agricultural preserve contracts have a rolling 10-year term, automatically renewing each year unless either the County or the landowner files a notice of non-renewal.
All proposed Agricultural Preserves are located on lands designated Agricultural Resource (AR) or Agriculture, Watershed and Open Space (AWOS) in the General Plan, and zoned Agricultural Preserve (AP) or Agricultural Watershed (AW). These designations identify agriculture as the predominant use and generally limit activities to agriculture and other uses compatible with it. Under the California Land Conservation Act, an “Agricultural Preserve” is an area devoted to agricultural, recreational, open-space uses, or a combination thereof (Government Code Section 51201(d)). Accordingly, the proposed Agricultural Preserves are consistent with the County’s General Plan and zoning, as each area is intended primarily for agricultural use.
2025 Williamson Act Agricultural Preserves and Contracts
A total of 14 new contracts have been submitted for Year 2025/2026, adding approximately 457.28 acres of land under the Williamson Act. Two of these 14 are replacement contracts, covering approximately 126.51 acres, as detailed below.
Rescinding two (2) existing contracts and replacement with two (2) new contracts:
Contracts #P06-01191 and #P06-01192 are being rescinded and replaced by two new contracts due to a lot line adjustment: Requestor Constellation Brands U.S. Operations Inc
Two (2) new contracts being entered into due to the rescission of the contracts identified above:
Requestor: Type: APN: Acreage:
1) Constellation Brands U.S. Operations Inc. A 027-280-079 98.16
2) Constellation Brands U.S. Operations Inc. A 027-280-078 28.35
Twelve (12) new contracts for Year 2025/2026:
Requestor: Type: APN: Acreage:
3) Frostfire Vineyards LLC. H 018-060-013 18.68
4) Frostfire Vineyards LLC. H 021-010-003 114.32
5) Frostfire Vineyards LLC. H 018-060-012 20.0
6) DDNG Inc. A 031-120-041 12.64
7) Yountville Vineyards LLC. A 031-120-040 21.68
8) Dawn P. Mancini Trust & Agapoff A 017-230-019 21.86
9) Bob’s Vineyard LLC. A 017-230-026 19.7
10) Madrigal Family Trust A 022-010-039 30.23
12) Opus One Winery LLC. A 031-080-028 42.8
12) Opus One Winery LLC. H 032-540-003 47.9
13) Infinite Leasure LLC. H 043-061-023 42.16
14) Infinite Leasure LLC. H 043-061-024 65.31
Template forms of the Type A and Type H Contract being offered and entered into this year are attached. Signed originals of the contracts requested for approval are available for review and inspection with the Board Clerk. Notice of the Board's intent to consider and take possible action on the proposed Agricultural Preserves and agricultural preserve contracts was published in the Napa Valley Register on Thursday December 4, 2025. For preserves located within a mile of an incorporated city, e-mailed and written notice was provided to the Cities of Napa on October 20, 2025, and the City of Calistoga on October 21, 2025. On October 20, 2025, the City of Napa and the Napa County Local Agency Formation Commission (LAFCO) was provided e-mailed and written notice of the Board's intent.
Financial Implications of the CLCA in Napa County:
As of January 1, 2025, there are 953 CLCA contracts within the County, including contracts located in the County’s municipalities, covering 953 parcels, containing 85,646-acres of land. According to the Assessor, of these 953 parcels 616 parcels receive a property tax benefit from CLCA contracts. The other 337 parcels are assessed at their Proposition 13 factored base year value. The total assessed value reduction for the 616 parcels receiving a benefit is $832,066,177 which translates into approximately $1.4 million in reduced tax revenue for the Napa County general fund. The Assessor has indicated that the fiscal impact would be similar to those seen in prior years when new contracts were approved. Currently there are approximately 1,547 contracted acres within the county that are in non-renewal.
Subvention Payments:
The Open Space Subvention Act (OSSA), enacted in 1972, partially reimbursed counties for property tax revenue lost through participation in the California Land Conservation Act (CLCA). The State eliminated this subvention funding in the 2009-2010 Fiscal Year. In 2009, the last year Napa County received full funding, the County’s subvention payment was approximately $90,000.
To address the fiscal impacts of this loss, the Legislature adopted SB 863 in 2010. SB 863 established a temporary alternative funding mechanism allowing counties to avoid widespread non-renewals of Williamson Act contracts by authorizing a direct charge on contract holders equal to 10% of their property tax savings. It also provided a one-time $10 million appropriation to the State subvention fund, from which Napa County received roughly $22,000 in FY 2010-11-about 25% of its typical allocation.
On January 25, 2011, the Board of Supervisors reviewed the CLCA program in light of the eliminated subventions and SB 863. The Board acknowledged that non-renewal of Williamson Act contracts would have little immediate fiscal impact due to the nine-year phase-out period, and reaffirmed that continued participation aligns with the County’s general plan priorities for agricultural preservation. The Board unanimously voted to maintain Napa County’s participation in the CLCA as currently administered. The County currently offers only Agricultural Preserve Contracts.
Requested Action:
The Director of Planning, Building and Environmental Services requests that the Board open the public hearing, hear public testimony, close the public hearing, and adopt a Resolution establishing certain Agricultural Preserves (Types A & H) and approve and authorize fourteen (14) new contracts as identified in the attached Resolution, which includes recission of two (2) existing contracts and replacing them with two (2) new contracts.
Procedural Requirements
1. Open Public Hearing.
2. Staff report.
3. Public Comment.
4. Close Public Hearing.
5. Motion, second, discussion and vote on the requested actions.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
Potential fiscal impacts would derive from lower property tax revenues following execution of Williamson Act contracts. No alternate source of revenue has been identified. |
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Is it Mandatory or Discretionary? |
Mandatory |
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Discretionary Justification: |
The Williamson Act program in general, and these contracts specifically, contribute to the preservation of agriculture in Napa County. The primary intent of the California Land Conservation Act (CLCA) program, also known as the Williamson Act, is to preserve the limited supply of agricultural land in the state by discouraging premature and unnecessary conversion to urban uses. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Property taxes for properties covered by a Williamson Act contract may be assessed at a lower level than other properties. To the extent properties are assessed at a lower level, the County will receive reduced tax revenue. Property owners receive a reduction in property taxes depending on whether they are assessed at the lower of their factored Proposition 13 base year value or the restricted CLCA value. Estimated decreases in County property tax revenue resulting from the proposed new contracts were not provided. The Assessor has indicated that the fiscal impact would be similar to those seen in prior years when new contracts were approved. |
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Consequences if not approved: |
The County would not be providing an incentive for keeping land in agricultural production, which is the intent of the County's approved General Plan. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Categorical Exemption Class 17: Open Space Contracts or Easements. It has been determined that this type of project does not have a significant effect on the environment and is exempt from the California Environmental Quality Act. [See Class 17 (Open Space Contracts or Easements) which may be found in the guidelines for the implementation of the California Environmental Quality Act at Title 14 CCR Section 15317.