Clearlake City Council to hold special meeting on Austin Resort property sale
- Elizabeth Larson
- Posted On
CLEARLAKE, Calif. – The Clearlake City Council is planning a special meeting to discuss the sale of two parcels that formerly made up the Austin Resort property.
The council will meet virtually at 9 a.m. Wednesday, May 27.
Because of the county’s shelter in place order, Clearlake City Hall remains closed to the public, however, the virtual meeting will be broadcast live on Lake County PEG TV’s YouTube Channel.
Comments and questions can be submitted in writing for City Council consideration by sending them to City Clerk Melissa Swanson at This email address is being protected from spambots. You need JavaScript enabled to view it. . You can also visit the city’s new town hall site and submit written comments at https://www.opentownhall.com/8889 . Identify the subject you wish to comment on in your email’s subject line or in your town hall submission.
Each public comment emailed to the city clerk will be read aloud by the mayor or a member of staff for up to three minutes or will be displayed on a screen. Public comment emails and town hall public comment submissions that are received after the beginning of the meeting will not be included in the record.
To give the city council adequate time to review your questions and comments, please submit written comments prior to 8 a.m. Wednesday, May 27.
The key business on Wednesday’s special meeting agenda relates to the proposed sale of the Austin Resort properties to Bailey Building and Loans LLC, which wants to build a destination resort at the site.
The sale will be taken up in two separate items because the property consists of two parcels.
The first is the 4.74-acre parcel located at 14061 Lakeshore Drive and owned by the city’s redevelopment successor agency since 1997.
The second property, located at 14071 Lakeshore Drive, is 2.94 acres. The former redevelopment agency also purchased the property in 1997 and in 2001 sold it to the city.
City staff is seeking approval from the council to authorize separate purchase and sale agreements for the two properties between the respective property owners – the redevelopment successor agency and the city – and Bailey Building and Loans LLC.
The council initially approved a letter of intent to sell the properties to Bailey Building and Loans in March. Last week, the Clearlake Planning Commission held a special meeting during which it found the proposed sale to be in conformance with the city’s general plan.
City Manager Alan Flora said the property has been envisioned by the city as the site for public space and a new resort.
“The Austin Resort property has had mixed interest in redevelopment over the years,” Flora’s report to the council for Wednesday’s meeting explained.
“The Redevelopment Agency portion of the property has been available for sale, but no significant or viable interest until the past several months,” Flora wrote.
He said representatives of the company met with city staff and Mayor Russ Cremer and Vice Mayor Dirk Slooten to discuss the opportunity at the site.
The company is proposing to buy both parcels for $915,350, Flora reported.
Flora said the city would receive 100-percent of the proceeds from the sale of 14071 Lakeshore, or $350,407, and 15.73 percent of the proceeds from the sale of 14061 Lakeshore parcel, which would total $88,815, based on calculations from the Lake County Auditor-Controller’s Office.
Other taxing entities also would receive funds from the sale of the property owned by the successor agency. Flora said the biggest share would go to the Konocti Unified School District, which would receive 44.7 percent or $252,534.
The oversight board for the former successor agency still has to meet to discuss the proposed sale; that meeting is set for June 8.
On the meeting's consent agenda – items that are not considered controversial and are usually adopted on a single vote – is the approval of Amendment No. 1 to the management and administrative services agreement with Regional Government Services for consulting services, with an amount not to exceed $45,000, and authorize the city manager to sign.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.