When Knotts bought the 464, it was because they were in dire need of a relief loco. The reliabilty of both C-19's was low, with it not unusual for both of them to be down at the same time. At the time there were not a whole lot of NG steam available for sale. Most of what was available were 15-18 ton tank engines, with a few ex steel mill engines that weighed in around thirty tons. The latter would have done the job, but having a loco the weight of a C-16 sitting on four drivers instead of eight can cause a lot of damage to light rail.
The 464 was for sale. It was felt they could make it servicable long enough to rebuild the two C-19's. After that they would consider what further work they would do on it. The collasped dry pipe made the decision for them. With the 40 and 41 behaving like new, the 464 was put on the market.