- Elizabeth Larson
- Posted On
Clearlake City Council approves property sale for housing development, purchase of land for intersection
In a meeting that ran just under 30 minutes, the council unanimously supported the separate sale and purchase proposals, which address the city’s goals of increasing its housing stock and pursuing the construction of a major shopping center that will front Highway 53.
The property sale involves 29 acres at 2890 Old Highway 53, which is owned by the former successor agency to the city’s former redevelopment agency.
City Manager Alan Flora was not sure of exactly when the agency took over the property, explaining that a developer who had planned a subdivision on the land — for which a tentative map had been adopted — lost the property when the project fell apart as a result of the Great Recession. The redevelopment agency bought it shortly afterward.
Last year, the council accepted a proposal from TJG/Summitt Development for a subdivision there, but the company notified the city in May that it wasn’t moving forward with the project.
Flora said the city was required by state law to notice and list the property as surplus to public agencies and through the California Department of Housing and Community Development’s database for affordable housing development.
Over the summer, four developers came forward and two provided proposals, including Danco Communities, which has another project in the city.
Danco is planning to build an 84-unit mixed income multifamily housing project on a five-acre parcel at 14795 Burns Valley Road. That project is expected to be built in 2022, Flora said.
The land where that project is being built is a portion of a 31-acre property the city purchased last December. The other 26 acres will include a new city sports complex and corporation yard.
As proposed, the new project on Old Highway 53 would be consistent with the previous one, which Flora said calls for 22 lots, each 1.25 acres in size.
The proposed sale price is $100,000, with a $5,000 deposit, after which Flora said escrow would be opened. Escrow will close after the tentative map is recorded.
Danco Communities President Chris Dart, who attended the meeting via Zoom, said the company plans to build the subdivision as previously intended, on the 51,000 square foot lots.
He said the homes will be 2,000- to 3,000-square-foot ranch style homes.
The project is similar to one they are now building in Humboldt County on one-acre lots, Dart said.
The city received two emails from a family living nearby who didn’t want the subdivision built because it would impact the quiet neighborhood and country atmosphere. They said they would have loved to have the opportunity to purchase the property to build stables there.
In response to questions submitted during the meeting by Lake County News regarding the time to develop the site, Flora said they have some “generous” time frames in the sale agreement.
Flora said development of the subdivision project should begin at some point next year as the apartment complex is being built on Burns Valley Road.
“This is the most difficult type of housing to develop either in Clearlake or Lake County,” Flora said, adding he isn’t aware of a similar project under development anywhere else in Lake County.
Regarding the comments about the sale prices from the neighbors, Flora said the market value in normal situations for such a property is significantly above $100,000. The reason it’s been offered to the developer at that price is to encourage its development for housing of this type.
He said the taxpayers have invested in purchasing this property. “Letting it sit as green space is probably not really an option, at least from my perspective,” Flora said, noting housing development is badly needed.
Dart said they are going to work on the entitlements on the property right away, and that could take six to 12 months.
He said they are going to build the subdivision out while they are under construction with the affordable housing project. That’s a way to make it work, to already be under construction on another project, as there are efficiencies.
Flora said the county’s redevelopment oversight board will have to approve the sale. He hopes to schedule a meeting of that board in January, noting it’s been OK with similar deals previously.
Mayor Dirk Slooten said the city sorely lacks market rate housing and he’s excited about the project.
It’s a place where nurses and schoolteachers will be able to live. “We don’t have that in this town,” Slooten said.
Vice Mayor Russ Perdock and Councilman Russ Cremer agreed.
Cremer said the property has been subdivided for a number of years and waiting for the right moment.
He said he was thrilled Danco is stepping in to do the project.
Cremer then moved to approve the sale agreement with Danco Communities, which Perdock seconded. The council approved the agreement 4-0; Councilwoman Joyce Overton was absent.
Property purchase to facilitate intersection construction
The council then moved on to discuss Flora’s request to approve the agreement with Edwin Jinks to purchase from him properties at 6461 Manzanita Ave. and 6452 Francisco Ave. for $550,000.
The properties, each of which has a large self-storage building on it, together total just under half an acre, according to county property records.
They are located just to the west of the Highway 53 and 18th Avenue intersection, on the edge of the city-owned property that previously was the Pearce Field airport.
The parcels the city is purchasing from Jinks will be added to a 40-acre area along Highway 53 where the city is conducting strategic master planning for a commercial and retail development.
Flora explained that the city has been working on a lot of things related to the airport retail development. That includes intersection and road design in order to extend 18th Avenue from Highway 53 west to Old Highway 53.
“In order to have a safe and attractive intersection there, there’s a need to construct the road through one of these parcels,” he said.
The city had been in talks with Jinks for some time and reached agreement on the $550,000 sale price, Flora said.
Flora asked for the council’s approval to give him the authority to sign the agreement.
He said the sale should close between 45 and 60 days.
Once Jinks’ personal property is removed, Flora said they can start work on the road project.
There was no public comment before Cremer moved to approve the agreement, which was seconded by Councilman David Claffey. The council approved the agreement 4-0.
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