- Elizabeth Larson
- Posted On
Clearlake City Council approves letter of intent with developer for Austin Resort property
The council approved the letter of intent with Bailey Building and Loans LLC at its Thursday meeting.
City Manager Alan Flora said there are two properties that make up the 7.68-acre Austin Resort property on the lakefront across from City Hall. One is owned by the city, the second by the city redevelopment agency’s successor agency.
The proposed purchase price is $915,350.
The city has envisioned that the property would be developed as a hotel. Flora said the developer’s draft plans are for a lakefront resort, including a hotel, restaurant, marina and amphitheater.
Flora said there is a “relatively short time frame” of 90 days to negotiate the purchase agreement. The purchase agreement for the property owned by the successor agency would need to be approved by the countywide oversight committee.
Councilman Russ Perdock asked if staff has done due diligence to make sure the people proposing the project actually can do it. Flora said it’s always difficult to make sure that’s the case, but the city’s research indicates they have experience.
Flora, Mayor Russ Cremer and Vice Mayor Dirk Slooten met with the group, which includes a professional developer from Florida.
“I think this is a wonderful opportunity,” said Slooten, explaining that the group has experience with marina-type developments.
“The projects they have done in the past seem to be substantially bigger,” said Slooten.
He added, “It’s very exciting for the city of Clearlake.”
Councilwoman Joyce Overton was concerned about the fact that the letter listed the city’s responsibilities as including the building of a roundabout at the Olympic Drive and Lakeshore Drive intersection. She also raised issue with what might happen if the property sat undeveloped for a long period of time and pointed out that community members now frequently use the land.
Flora said there could be some funds available to help pay for the roundabout, and added that the developer is committed to maintaining public access to the property.
“We don’t want to miss the forest for the trees,” said Councilman Phil Harris, explaining that the property is more of a liability than anything to the city.
He said the city is looking at an opportunity to revitalize its downtown corridor, and the project could offer an ongoing stimulus for the community. “It really does change the entire face of our downtown corridor.”
Harris said he wanted to see a timeline for when construction would begin.
Flora said it will take some time to get the project started, noting the need for US Army Corps of Engineers permits. He said it’s also an opportunity zone project.
Slooten said the development agreement would outline the project, infrastructure and who would pay for it.
“That all comes in the next step. This is the first step,” he said, adding it’s a $20 million project.
Cremer said the project would definitely transform the city. “I see a very bright future for the city of Clearlake,” said Cremer, adding it will bring employment opportunities and dollars to Clearlake.
No public comment was offered and Slooten moved to authorize Flora to sign the proposed letter with Bailey Building and Loans. Perdock seconded and the council approved the letter of intent 5-0.
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.