CLEARLAKE, Calif. – The Clearlake City Council is poised to consider a letter of intent to sell the city-owned Pearce Field property to a developer.
The letter is among the items the council will discuss at this week’s meeting.
The council will meet in closed session at 5:30 p.m. Thursday, April 11, to discuss one case of anticipated litigation, an existing lawsuit against Pacific Gas and Electric, a liability claim filed by Tyler Borland and labor negotiations with several employee associations before the open portion of the meeting begins at 6 p.m. in the council chambers at Clearlake City Hall, 14050 Olympic Drive.
On Thursday, City Manager Alan Flora will ask the council to authorize him to sign a letter of intent with Village Investment Partners LP, which wants to purchase the 27-acre Pearce Field property on Highway 53.
Village Investment Partners includes developer Barry Johnson, who built the Lakeport Department of Motor Vehicles building and the Clearlake Carl’s Jr. restaurant, among other projects.
The airport, which was owned by the Clearlake Redevelopment Agency, was transferred to city ownership after the state ended redevelopment. Flora said the property “has been intended for commercial development for many years, but completion of the project has been hampered by many things, including the Great Recession, lawsuits and other hurdles,” Flora said.
In 2010, the city of Clearlake approved a shopping center at the site and had agreed to sell 15 acres to KK Raphel Properties. However, not long after the project was approved, the Sierra Club Lake Group sued the city to stop the project. The Great Recession followed and the project never came back together.
In 2015, the city had begun negotiating with Roseville-based Katz Kirkpatrick Properties, a sister company of KK Raphel Properties, for the the airport site. Flora told Lake County News that the company has since has dropped out.
“Due to Barry Johnson and John Glikbarg’s involvement in the neighboring properties they expressed interest in looking at the larger potential of the combined properties,” Flora said. “They met with the city several months back and expressed an interest if the previous developer pulled out.”
Closed session discussions on the site have been on the council agenda in the intervening months.
In his written report to the council, Flora noted that, “Within the past year, Village Investment Partners have expressed interest in purchasing the property and proceeding with a large-scale commercial development. The group that makes up Village Investment Partners (VIP) also has an interest in two neighboring properties, including the former ‘Waterpark’ property. These properties could be combined in a large scale project.”
Flora added that, while there was some negotiation between the company and city staff regarding a purchase agreement for the property, the recommended first step is to execute a letter of intent for the property’s purchase.
He said the resulting agreement would provide Village Investment Partners “a six-month window to determine interest from retailers or other commercial tenants. If adequate interest exists, the parties would negotiate a purchase and sale contract.”
If the airport property were sold, Flora said the property would be sold at fair market value, to be determined by an updated appraisal. He told Lake County News that the last appraisal on the property, completed in 2015, valued it at $1.37 million.
The Redevelopment Agency Oversight Board also would be required to approve the sale and distribution of the funds to the various agencies, Flora said.
Flora also told Lake County News, “We have some recommendations on how to use the proceeds to maximize the development potential of the site, but this will be decided by the Oversight Board if the deal moves forward.”
Also on this week’s agenda is a discussion of a gravel road maintenance checklist and construction maintenance guide, adoption of an ordinance amending the Clearlake Municipal Code relating to abandoned vehicles, the swearing-in of Clearlake Police Capt. Tim Celli and Community Service Officer Daniel Costancio, presentation of the Clearlake Police Department Annual Report, and proclamations declaring April 14 to 20 as Public Safety Telecommunicators Week, declaring April as Child Abuse Awareness Month and Sexual Assault Awareness Month, and declaring support for the 2020 Census.
Items on the consent agenda – items considered noncontroversial and usually accepted as a slate on one vote – are warrant registers; minutes of the Feb. 21, 28, March 14, 21 and 28 meetings; correction to Resolution No. 2019-13 adopting the police captain job description and salary range, Resolution 2019-16; updates to the fiscal year 2018-19 salary schedule, Resolution No. 2019-17; and the second reading and adoption of ordinance to amend Subdivision 3-4.5(a)(8) of the Clearlake Municipal Code, “Exceptions to Competitive Bidding Requirements.”
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