- Elizabeth Larson
- Posted On
Clearlake City Council votes to sell portion of airport property for hotel project
In a unanimous vote, the council on Thursday evening approved a proposal to sell a 2.5-acre parcel to MLI Associates LLC for the development of a 75-room Fairfield Inn by Marriott.
MLI Associates also is considering adding a small conference center and possibly some retail to the plan, according to City Manager Alan Flora.
The property is located at 6356 Armijo Ave. and is a portion of the city’s former Pearce Field airport site. Flora said the site is on the far northern part of the property, at the end of what was once the runway.
The sale price is $305,000, with the city to hold the note during the construction process. The proposal calls for the city to forgive portions of the note if the company meets specific deadlines.
Flora went over the deadlines, explaining that the first one is 14 months after closing, when the company needs to complete the process of getting all of the necessary entitlements.
At the 20-month mark, MLI Associates must begin construction, he said. The new hotel is proposed to be opened within 36 months of the closing of the sale.
If each deadline is met, Flora said the remaining payment on the note would be forgiven.
It’s the first tangible project at the airport site, so there is increased risk to the developer, said Flora, adding there are other projects the city is excited about that staff will be bringing to the council soon.
Flora said the plan includes the city installing road and utility infrastructure at the site, which over the years the city has attempted to market for a shopping center.
MLI Associates owner Matt Patel attended the meeting via Zoom.
“It’s been a pleasure working with Alan and the rest of the team over the last few months,” Patel said.
He said Marriott has approved the site for the hotel project.
Patel said he’s looking forward to developing the hotel and having a long-term relationship with the city.
He said he’s working with local companies and individuals on the project, including Bridges Construction.
During public comment, City Clerk Melissa Swanson read an email from a community member questioning the sales price and the process.
Councilwoman Joyce Overton said many cities give away property for development if it will provide taxes and jobs, and Flora also noted that the property has been for sale “for way too long.”
Flora said the existing parcel is 200 feet wide and the Fairfield Inn plan requires a 240-foot-wide parcel. There are paper roads on both sides of the site, so the agreements with MLI Associations envision the city abandoning those rights of way. There will be a public hearing in the future to finalize the road abandonment.
Councilman Russ Cremer moved to approve the agreement, with Overton seconding and the council voting 5-0.
A ‘significant’ addition
There are more than 1,100 Fairfield Inns in the United States, with nearly 70 in California, according to the company’s website.
Flora told Lake County News that the new hotel project will be a “significant” addition to the city’s hotel inventory.
“Some of the existing hotels are very dated with a lot of travelers choosing to stay in other locations around the county. Lake County in general has a deficit of quality rooms,” Flora said.
Flora said the city of Clearlake has five properties that are considered hotels, and a total of 12 properties that currently offer lodging, including campgrounds, vacation rentals and hotels.
Flora said he didn’t have a total number of rooms that he trusts very much, but he estimated the total number of rooms in the city now is at about 150, with the Best Western having the most at 68.
A year ago this month, the city had begun negotiations with King Management over the Armijo Avenue site and later entered negotiations with the firm for a hotel development on a portion of Redbud Park that’s currently the site of the ball fields, which the city plans to move to a newly purchased property on Burns Valley Road behind Safeway.
In January, the council approved extending the negotiations.
Flora said MLI Associates is a completely different company than King Management.
“King was interested in the airport as well as Redbud, but MLI was willing to do the airport much more quickly,” he said.
“The Redbud project is moving very slowly, but we still hope to keep that deal alive too. We have other folks that are interested if King doesn’t come through. There are a couple of legal things we are working through at Redbud in order to finalize a deal,” Flora said.
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