KELSEYVILLE, Calif. – The effort to finalize the purchase of Konocti Harbor Resort and Spa is still under way, with the sale contingency period extended.
That's the latest word from Grant Sedgwick, president of the San Francisco-based Resort Equities, the firm which is seeking to purchase Konocti Harbor.
Last Aug. 1, Resort Equities signed a purchase agreement to purchase Konocti Harbor from its longtime owner, UA Local 38 Convalescent Trust, as Lake County News has reported.
The purchase price for the resort hasn't been disclosed.
The resort, which closed in November 2009, sits on 90 acres – of which about 58 acres is developed – on the shores of Clear Lake.
Konocti Harbor needs major upgrades, according to Sedgwick, who told Lake County News in an interview last fall that he estimated it could cost between $50 million and $70 million to renovate what was, at one point, Lake County's premier resort.
The Resort Equities proposal includes building a new 75-unit hotel and 15 two-story fourplexes at the resort, demolishing 121 existing units, renovating 150 units along with the pool and main lodge areas, building 175 new boat slips, expanding and repairing the resort's system of docks and piers, more parking and greater shoreline access.
The plans also call for offering 164 timeshare and fractional ownership units at full buildout.
In December, the Lake County Planning Commission gave unanimous approval to Resort Equities' plans for the resort, and approved a mitigated negative declaration, a major use permit and shoreline variance for the renovation plans.
At the time of the December planning commission meeting, Sedgwick had estimated escrow could close in the first half of March.
However, Sedgwick told Lake County News in a recent interview that escrow has not yet closed.
He said the purchase effort is still under way and is moving in “a positive direction.”
Konocti Harbor's current owners are very satisfied that Resort Equities is making progress in arranging the necessary financing for the project, according to Sedgwick.
“They have cooperated in extending the contingency period under the agreement until the end of May,” he said.
Sedgwick added, “A construction start is still planned for this summer.”
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