Clearlake City Council extends negotiations for airport property
- Elizabeth Larson
- Posted On
CLEARLAKE, Calif. – The Clearlake City Council on Thursday agreed to extend negotiations with a firm interested in purchasing and developing the city’s airport property.
The council authorized City Manager Alan Flora to extend the letter of intent with Village Investment Partners LP for the 27-acre former Pearce Field airport property on Highway 53, next to the former waterpark.
On April 11, the council had initially authorized the letter of intent for an exclusive negotiating agreement for six months, as Lake County News has reported.
Flora said the city received a request from the firm on Oct. 3 to extend it for another six months. The original agreement ended on Oct. 11.
Barry Johnson, president of Summit Development and a partner with Village Investment Partners, said the project originally was approved in 2008 and included a home improvement center.
He said that at the time Summit Development was in contract with Safeway while Village Investment Partners was in contract with Walgreens. Fred Katz of Sacramento was a codeveloper at that point, but he is no longer involved.
“We have a good project. It's been preliminarily designed,” said Johnson, explaining that they have gone back and presented it to retailers who previously were interested.
The answers from potential tenants have been slow but they weren't negative, with every major retailer having its own agenda. “In this market, there are a lot of opportunities that have opened up to them,” and the reality is, Clearlake isn’t at the top of their list, Johnson said.
As an example of the challenges in working with retailers, he said he worked on a shopping center in Los Banos, and it took two years to get on Costco’s list.
With the Clearlake project, “We're not quite there yet,” so they are asking for another 180 days, which Johnson said they intended to use aggressively.
The firm received a demographics report – which Flora later explained was provided by the city – that shows that the area generates more than $1 billion in revenue, but that more than $600 million leaves the market and goes to Ukiah, Woodland, Santa Rosa and other markets. “It encompasses all areas of retail.”
That provides a big opportunity to potential retailers. Johnson said the information is going to help them market the project.
Johnson said he and partner Dave Hughes initially had brought Walmart into the county decades ago.
Another partner, John Glikbarg, is making site improvements to a property he owns at the Highway 53 and Dam Road intersection across from the MacDonald’s and Carl’s Jr., the latter another of Johnson’s projects. Johnson encouraged the city to make any possible improvements to the area of 18th Avenue to draw retailers.
“At this point we believe that we have made progress,” said Johnson.
During the discussion, Johnson said his firm has met with Mayor Russ Cremer and Flora to go more in-depth over the process, and he suggested they meet on a more regular basis. During those meetings, he said they disclosed to the city leadership letters with retailers they are targeting.
Mayor Joyce Overton pressed Johnson on what types of retailers they are targeting. Johnson referred back to Lowe's, which previously were in contract until a Sierra Club lawsuit stopped the project.
Johnson said they are trying to bring back and reengage retailers who are familiar with the site. “That's where our discussions are now.”
In response to other questions about their work, Johnson said they attend retail conventions in order to get face time with retailers. “We're trying to be the squeaky wheel,” and stay in front of them.
Flora noted during the discussion that the city had a retail study completed – it was rushed through because of the letter of intent timeline – and supplied the firm with the information to assist its efforts.
“It is encouraging to hear that they feel like it is going to make them more competitive, out there trying to attract retailers with that information,” Florae said.
“We feel good about where they're going,” he said, adding, “I think we all want to see something developed there as soon as possible.”
After a discussion about options – including a suggestion from Flora that they could add another section to the letter to allow for another developer with definite interest, should one come forward – the council ultimately chose to maintain the current wording
Johnson, whose projects also include the Burns Valley Center and the Department of Motor Vehicles building in Lakeport, said, “We have a vested interest in seeing this succeed.”
Councilman Dirk Slooten asked if, because of the Sierra Club suit, a full environmental review will be necessary for the project. The settlement sets in place requirements they can comply with, Johnson said.
Hughes told the council that he’s had an inquiry for Glikbarg’s property from a developer who wants to do a three- to four-story hotel. He said there is a lot of positive energy around the area.
Following a brief break, the council reconvened and reached consensus to direct Flora to extend the letter of intent with Village Investment Partners, with no changes, for six months.
“We all very much look forward to this thing coming to fruition,” said Councilman Phil Harris. He added, “We have faith in you.”
“That doesn't mean we will let up on you,” said Cremer.
In other business on Thursday, the council held a public hearing and adopted the update to the city’s general plan housing element, and considered projects within the county's cannabis exclusion areas, with a majority of the council asking staff to bring back proposed guidelines.
Also on Thursday, the council presented proclamations designating proclamations designating October as both Domestic Violence Awareness Month and Breast Cancer Awareness Month; and approved a resolution reaffirming the Traffic Safe Committee and approved Mayor Russ Cremer's committee appointments.
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