- Serena Makofsky
- Posted On
Supervisors discuss options for Lucerne Hotel property
LAKEPORT, Calif. – The Board of Supervisors met Tuesday to explore possibilities for the historic Lucerne Hotel, also known as the Castle.
Since Marymount California University broke its lease in June, the county closed the building and its fate has been uncertain.
County Administrative Officer Carol Huchingson opened discussion by saying, “The thing I think we all readily agree on is that it does no one any good to have the castle continue to sit empty.”
Deputy County Administrative Officer Michelle Scully reviewed board directives regarding the property.
The staff received an appraisal for $3 million on Nov. 1. Scully estimated the overhead to maintain the facility at $78,500 annually, using 2015 numbers.
Staff also had to resolve the standing lease agreement with Marymount California University.
Then, the staff compiled a list of interests for the property. In all, 13 individuals and entities expressed interest, four of which submitted proposals.
Finally, staff established a decision-making timeline to lease or sell the facility.
Supervisor Jim Steele, whose district includes the Lucerne Hotel, said he gave a tour of the Castle to an outside interest.
The board opened the subject for public comment.
Denise Rushing, former District 3 supervisor, said that the former redevelopment agency used its funds to purchase the property. Later, when the agency was closed, a case had to be made to transfer the property to county of Lake.
She warned, “It is very possible, without the county involved, that blight could rear its ugly head in that building.”
John Jensen, co-owner of Lake County News, spoke next. He said that selling the Castle rather than conducting a request for proposals, or RFPs, short-circuits the process. He described the property as “a community asset.”
Jensen conducted an informal survey of local residents and procured signatures on petitions. He found multiple groups with interest in leasing space there.
Elizabeth Larson, editor of Lake County News, described the outreach she has done concerning the Castle. She observed, “The community is very attached to the building.”
She described monuments across the country lost at a terrifying rate due to fires. “This is a time when we have to reconnect to our history.”
Larson concluded, “There was a great deal of heart and vision that went into the building … It is worth fighting for and worth saving.”
Bernie Butcher, owner of the Tallman Hotel, supported an RFP process. He suggested that a potential buyer could also submit a proposal that includes owning the building.
Sherry Treppa, chair of the Habematolel Pomo tribe, addressed the problems implicit in the idea that the Castle could be made into a casino, warning, “It is a multi-year effort.”
Steele wondered if it is best to find someone “with deep pockets” to buy the property.
Supervisor Moke Simon said he does not believe the county should be in the business of leasing the space.
Linda Hedstrom, a resident of District 4, reminded the board not to count on private owners keeping any promises when they develop properties.
Lars Ewing, Public Services director, is the maintainer of the building “by default.” He described the projected cost of maintenance and repairs as “onerous,” asserting that an RFP proposal should include a consideration of how the building will be maintained.
Supervisor Rob Brown agreed the county cannot continue to maintain the property. He recommended waiting six months to see if a group could find a mutually beneficial option for the county and the community.
Huchingson said six months is a minimum time frame to establish an RFP, and that at least 90 days would be necessary to receive proposals.
Supervisor Tina Scott agreed with Brown. “We are in a unique opportunity to keep control of what the lease could become.”
Board Chair Jeff Smith stated he finds it is valid to move forward with an RFP with a possible purchase option. “Maybe we can have the best of both worlds,” he said.
County Counsel Anita Grant recommended that, if a tandem approach is adopted, they need to follow legal requirements and ensure it matches their vision for the property. It is imperative to create an equal playing field for all proposals.
Jensen asked when the RFP would be issued and when it would be due. Brown said they have to work out the details.
Lake County Land Trust member Roberta Lyons said, “We should give the people of the community a chance.”
She recalled how locals rallied around preserving the Lower Lake Schoolhouse Museum.
There was discussion that the Castle was purchased for $1.35 million and maintenance and renovations have increased the investment to $4.2 million.
Although the Castle is 55,000 square feet, only 20,000 square feet has been renovated. The main floor, which was hotel rooms, is not renovated. Smith described the projected cost to renovate as “staggering.”
The board decided to pursue engaging in the RFP process.
Huchingson stated that the timeline for establishing an RFP is ideally by the end of 2017 or early 2018.
“We will fast track this,” she said.
Serena Makofsky is a freelance contributor to Lake County News.