LAKE COUNTY, Calif. — The City of Clearlake has completed a property sale to a developer who plans to build a new apartment complex next to the location of a new sports and recreation center.
City Manager Alan Flora said the city’s sale of a five-acre parcel at 14795 Burns Valley Road to Danco Communities closed Thursday, with paperwork filed Monday.
He said the final sale price for the land was $1.5 million.
The overall cost of the project was estimated at around $50 million.
Last May, Clearlake City Council voted unanimously to approve an exclusive negotiation agreement with Arcata-based Danco for an 84-unit apartment complex with mixed-income family units, as reported reported Lake County News.
This led to the board voting unanimously at a special meeting on December 16 to approve the sale of the property to Danco.
Flora told Lake County News that the project as proposed remains “much the same” as when it was proposed to the city last year, and will include approximately 80 units.
At the Clearlake City Council meeting on Thursday, Flora told council members that completing the sale and transfer of the property had “been a pretty tough place to get into,” primarily due to the involvement from the California Department of Housing and Community Development.
“Danco is very excited to get started. We have their permits and everything is ready to go. They plan to start construction on June 1,” said Flora, adding that they would be there in just over a week.
“We will be thrilled to see this project move forward,” he said.
Mayor Dirk Slooten said he would like to see a groundbreaking ceremony held for the project. Flora said they didn’t discuss it but he would discuss it with Danco.
He estimated that Danco was at least a month, if not six weeks, behind when they wanted to start depending on the timeline for tax credit funding, and those delays raise concerns for the company about its ability. to complete the project on time.
The City is seeking subsidies for a sports complex
The land the city sold to Danco for the apartment complex was part of a larger 31-acre parcel the city purchased in December 2021.
The city is currently working through the planning process for a new municipal sports and recreation complex and corporate yard which will be located within the remaining 26 acres of this parcel.
On Thursday, Flora updated council on the work staff are doing to secure grants for the sports complex.
He said the city had requested just over $5 million from the US Economic Development Administration, part of the US Department of Commerce. Its website says it invests “in communities and supports regional collaboration to create jobs for American workers, promote American innovation, and accelerate long-term sustainable economic growth.”
Flora said the project did not receive an award from the Economic Development Administration, which only had $50 million available for the entire state. Although officials said they liked the project, it was not finalized.
However, the city is pursuing other sources of grants and government funding.
At its April 7 meeting, the board approved an emergency item to submit before the deadline a request to Congressman Mike Thompson to include the sports complex among the projects he sends to the House Appropriations Committee for review. for funding community projects.
Each member of Congress is allowed to submit up to 15 points for consideration. Two Lake County projects that Thompson submitted in the last round – $450,000 for the Lake Kelseyville County Sidewalk Project and $320,000 for the Lake Effluent Pipeline Preliminary Design Report Update of the county – were funded when HR 2471, the People’s Funding Bill, was passed. March.
Regarding the latest list of projects, “He selected our project as one of them to move forward,” Flora said of Thompson.
Thompson’s office has requested additional information about the project, and Flora said he hopes the city hears something in the next few months.
Flora said another potential funding avenue is through California State Parks, which the city has requested for $3 million.
“They are analyzing the projects right now,” he said. “We received a notification that they wanted to come and check out the site and ask questions.”
However, Flora warned that the visit does not guarantee the award of a grant, explaining that they do not always visit the projects they choose and they do not always notify a visit.
He said that was the case when state officials came to visit Highlands Park, which was done without notifying the city.