The property, a small home with a 100-foot-long pier, is located at 3555 Lakeshore in Nice, amidst other county-owned property near Holiday Harbor.
The board previously considered purchasing the property in March, when it was listed at $184,900, but decided against it, as Lake County News has reported.
However, Public Services Director Kim Clymire and Deputy Redevelopment Director Eric Seely reported to the board Tuesday that the price has since dropped to $102,000.
The property previously was purchased in 2001 for $165,000, but it was lost in foreclosure last November, at which time just over $456,000 was owned on the property, according to the report from Clymire and Seely. Clymire described the house to the board as a “teardown.”
The residence encroaches on county property, which was allowed through an encroachment lease which doesn't transfer to new ownership, Clymire and Seely reported.
Clymire and Seely proposed purchasing the property with $125,000 in general fund money set aside in the Parks and Recreation budget. The purchase may be eligible for reimbursement through the state's Proposition 84 parks grants, said Clymire, but he said that wasn't guaranteed.
For the most part, board members appeared to favor the purchase, but they were concerned about the money coming from the general fund.
“I think this may be our only chance to get it,” said County Administrative Officer Kelly Cox.
Despite the fact that the property has created “a longstanding problem” for the county, Cox said he didn't feel it was absolutely necessary for the development of the nearby Holiday Harbor land, which is why he didn't propose the funds come from redevelopment.
He said it would be considered park property, and the pier could replace another one that had to be torn down on county property, which community members have indicated that they miss. “It's one way to get that back,” said Cox, who was comfortable using one-time general fund money.
Supervisor Anthony Farrington asked if the county had redevelopment money available. Cox said they had lost $700,000 to the state, and it's not certain they'll get the money back.
The redevelopment money they do have left is being held aside for the purpose of partnership with a private developer – Cox said that project should be coming in the board in the months ahead.
When pressed by Farrington, Cox would only say that it was an economic development project in Lucerne that would create a lot of jobs and significantly increase the tax base. Clymire suggested he was speaking about a hotel project proposed by the Affinito family.
Supervisor Jeff Smith said he was hesitant to use general fund money, although, he added, “I believe that it will make a difference to the redevelopment area.”
He pointed out that piers can be expensive, and asked about the size and construction of the pier on the property. Clymire said it was 100 feet long and 4 feet wide with wood pilings. He said to build such a pier currently would cost about $75,000.
Cox worried that they may not have enough redevelopment money left to finish projects in Upper Lake and on Lucerne's Third avenue.
Board Chair Denise Rushing said this was a rare area where she disagreed with Cox, because she believed Holiday Harbor is more marketable without the blighted property in front of it.
“I don't disagree with that,” said Cox. “It would enhance Holiday Harbor.”
Cox said they have yet to decide what to do with Holiday Harbor, and he believed there is other land between that property and Highway 20 that poses more of a blight issue.
“You're not going to get that land for $102,000,” said Clymire.
The lakeshore property wasn't the highest priority for Cox. Rushing noted the opportunity wasn't likely to present itself again, but Cox said he was concerned that buying the land wouldn't necessarily increase property values in the area, one of his chief concerns in generating tax increment revenue.
Supervisor Rob Brown said it wasn't a priority for him, especially in a time when the county is having to put off other projects, like fixing roads.
Smith said if it came down to buying the land with general fund money and not buying the land, he would opt for not buying it.
The board ultimately decided that they wanted to go use redevelopment funds, which will require a public hearing. The matter is set to be brought back next month.
County receives statewide “Challenge Award”
Also at Tuesday's meeting, Jim Wiltshire, deputy director of the California State Association of Counties (CSAC), presented the county with the Challenge Award for its efforts to redevelop Clearlake Oaks.
Wiltshire said CSAC started the Challenge Award in the mid-1990s to recognize innovation in county government.
He said Lake County was one of only 12 recipients of the award this year out of more than 200 applications.
Wiltshire said that it appeared the county had leveraged up to $11 million to improve Clearlake Oaks.
He said CSAC would share the project with other counties in an effort to help them replicate Lake County's success.
Wiltshire presented the glass award to Rushing, in whose district Clearlake Oaks is located.
“It truly was an incredible effort on the part of staff,” said Cox.
Rushing also recognized the community, which got involved in making the changes. “It was absolutely a transformation,” she said, adding she was proud of the staff and the creative way it financed the project.
Clymire said community members donated thousands of dollars for trees planted at Nylander Park, which also was developed based on community input, without the use of an expensive consultant. In eight months they turned one acre of dirt into a premier county park, and followed it up with The Plaza development.
Rushing thanked fellow board members for their support, without which the changes wouldn't have happened.
In other news, the board voted to sell its Proposition 1A receivables to a joint partnership formed by CSAC and the League of California Cities. Doing so will help the county recover $2 million that the county lost when the state borrowed it in this year's budget.
Not selling the receivables would have meant the county having to wait until June of 2013 for repayment, with Farrington pointing out that, based on how the state didn't pay the county for a special election, there's no guarantee that they actually would be repaid in this case, either.
The board also voted to approve a proposed agreement between the county and Quincy Engineering for construction administration services for repair of storm damage site on Sulphur Bank Drive in Clearlake Oaks.
Brown presented a proclamation to Marilyn Holdenried in recognition of her work for the community. He said the proclamation took two pages to list her achievements.
When Brown was a kid, he said Holdenried's husband, Myron, was on the school board. “We all knew even then who was really driving the bus.”
Brown said Marilyn Holdenried doesn't complain, she just gets things done. Cox also praised her for what she's done for the county.
“It's really hard to say no to Marilyn,” said Cox. “It doesn't happen often.”
In receiving her proclamation, Holdenried didn't have a long speech, only promising, “There's more” with regard to what she plans to do.
E-mail Elizabeth Larson at