Saturday, 15 June 2024

Brown: Konocti Harbor sale still up in the air

LAKEPORT – Supervisor Rob Brown says that Kenwood Investments, proposed purchaser of Konocti Harbor & Spa, has not delivered a final decision on whether it will continue in the transaction since the county board ruled out any possibility of developing a gambling casino at the site.

"I haven't heard anything," said Brown, regarding Kenwood's potential purchase of Konocti Harbor from UA Local Convalescent Fund.

"We're waiting with baited breath," added Brown, who said he had spoken with Kenwood representative Brad Welch in the week since Kenwood canceled a meeting with himself and other county officials.

Brown said Welch told him that Kenwood hasn't given up on the deal yet.

The meeting cancellation followed the Supervisors' 5-0 vote against allowing Kenwood to move forward with a casino project, which could be made possible by federal legislation converting the 38-acre Konocti Harbor property into an Indian reservation, or rancheria.

Whether the unanimous vote slamming the door on the Kenwood plan killed the deal, Brown is uncertain.

"They haven't pulled out," he said,"and I'm not implying that they will."

The resort remains at the heart of a federal lawsuit, scheduled to go to trial May 7.

In that lawsuit, the Department of Labor alleges that Local 38 of the United Association of Plumbers, Pipefitters and Journeymen – which controls the convalescent fund that owns Konocti Harbor – diverted $36 million in assets of five employee benefit plans to renovate and operate the resort.

Brown is planning a trip to Sacramento Monday to meet with lawmakers about the casino issue, including Assemblywoman Patty Berg, Sen. Pat Wiggins, and staff from the Gov. Arnold Schwarzenegger's office, as well as staff from the offices of Assembly Speaker Fabian Nunez and Senate leader Don Perata.

E-mail John Lindblom at This email address is being protected from spambots. You need JavaScript enabled to view it..


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