CLEARLAKE, Calif. – The Clearlake City Council has approved the sale of five parcels that had been owned by the city’s former redevelopment agency to a developer.

The council took the action at the end of a public hearing held during a special Monday morning meeting.

City Manager Alan Flora said the properties consist of 18 lots – each measuring 50 feet by 100 feet with access to utilities – contained in five parcels located at 15786, 15796, 15806, 15846 and 15847 36th Ave.

He said that with the dissolution of the Clearlake Redevelopment Agency, the city – acting as the successor agency – holds properties that need to be sold, including the former Pearce Field airport and the Austin Resort land. There also are smaller residential properties like the lots proposed for sale.

“While there is a need throughout California and the City of Clearlake for additional quality housing, the market values in Lake County and current costs of construction do not align in a way that makes larger subdivision development economically feasible,” Flora’s written report to the council explained.

He said city staff has been focusing on infill development opportunities. Out of the city’s discussions with interested parties, Alpine Design Build Inc. expressed an interest in building several homes on the infill lots if they could acquire a significant number in one area.

Flora said a real estate professional performed an analysis and determined the lots should be listed as-is for $35,000. They’re in an area with an existing gravel roadway and significant drainage issues.

He said Alpine Design Build responded to the city’s listing with an offer of $18,000 for all of the lots.

Flora said the developer intends to build 18 homes on the parcels, and also is offering to improve the drainage and construct a new paved road from Phillips Avenue to the corner of Eureka at 36th Avenue, at an estimated cost of $79,000.

The company also has contacted other property owners in the vicinity with vacant lots and could expand the project beyond redevelopment properties, Flora’s written report explained.

Flora asked for the council to authorize him to execute the final purchase and sale agreement, which would then be forwarded to the Lake County Redevelopment Agency Oversight Board for final approval.

The oversight board will oversee the distribution of sales proceeds to the taxing entities, which include the city, the county, the fire districts and school districts, Flora said.

He said that he hadn’t done the calculations of what the city would receive, but it will be a small amount.

However, Flora pointed to bigger benefits, noting the parcels have been off the tax rolls for years, and there will be a much larger long-term financial benefit to the city to have 18 new homes developed.

He said the city’s Public Works director and engineer have met with the developer and reviewed the road and drainage plans. “Those improvements would meet the city standard.”

Flora said the final purchase agreement would include a provision that no certificates of occupancy for new homes would be issued until road and drainage improvements are completed and a clause that calls for the property to revert back to the redevelopment successor agency if the road and drainage improvements are not completed in 12 months.

City council members gave their approval for the plan. Flora said Councilman Phil Harris, who was absent, had told him he also was in support.

Councilwoman Joyce Overton asked if the homes were going to be in the moderate-income range. Flora said the homes are expected to be valued at about $250,000 each, adding that the developer is interested in doing other projects in the city.

Vice Mayor Dirk Slooten said that “nothing but good” – including new houses and tax revenues – would come from the plan.

The council approved the sales of the properties 4-0.

Flora’s report said the Lake County Redevelopment Agency Oversight Board has been asked to meet on May 7 to consider the sale agreement.

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