LAKEPORT – The Lakeport City Council decided in closed session Tuesday night to open negotiations on the sale of its Vista Point Shopping Center with a Sonoma County developer.
City Attorney Steve Brookes reported Wednesday that the council directed him and City Administrator Jerry Gillham to begin negotiating with Matt Riveras, one of two developers who submitted a proposal to purchase the center, located on Lakeport Boulevard near Highway 29.
Brookes said Riveras has developed a few shopping centers and also owns a house in Lakeport's Lands End neighborhood. Riveras also is the son-in-law of City Councilman Buzz Bruns.
Riveras appeared at the City Council meeting and spoke briefly during public comment, asking the council to choose his proposal and encouraging them to check out his qualifications.
Barry Johnson, owner of Willopoint trailer park and a partner in the purchase of the now-closed Outrageous Waters property in Clearlake, was the other developer to submit a proposal.
Like Riveras, Johnson also spoke briefly to the council Tuesday night, explaining that he had development experience in both Lake County and other areas of the state, including Los Banos, where he developed a Wal-Mart. Johnson said the packet of information he provided to the council also included a letter of support from Meridian Investments, which holds the lease on the Vista Point center.
Brookes said he sent out about 17 letters earlier this summer inviting purchase proposals for the 9-acre parcel, which includes the 113,288 square foot shopping center. City documents report that a March 2006 appraisal of the property valued it at $900,000 “as is.”
“We had a lot of interested parties, but only two made submittals,” said Brookes.
The city isn't just selling the land but also the lease for the shopping center, which is held by Oakland-based Meridian Investments and has a remaining 21 years before it runs out, according to city documents. The lease's 2006-07 payment was $42,337.37, and increases by 5 percent annually.
Riveras and Johnson submitted bids for the center in the same amount, which Brookes said the city was not yet prepared to disclose.
“The council made a determination not to award on price alone,” said Brookes, adding that the city wanted the property – where part of the roof has fallen in – rehabilitated “sooner than later”
When the council went into closed session Tuesday night, two of its members sat out of the discussion due to potential conflicts of interest under Fair Political Practices Commission requirements, said Brookes.
Councilman Jim Irwin had a prior contractual agreement with Riveras regarding a fence between homes he and Riveras were building in Lakeport's Lands End area, Brookes explained. The agreement included a $500 contribution for a common fence.
Irwin's connection with Riveras was tenuous, but to be careful Brookes urged Irwin to recuse himself.
In the case of Councilman Buzz Bruns, his reason for recusing himself was much more straightforward because of his family relationship to Riveras, Brookes said.
Brookes said the city's discussion about selling the shopping center started in 2004. However, before it could put the property up for sale, the city needed a parcel map, because it had acquired the land in chunks over the years.
“The big hang up was the parcel map took much longer,” said Brookes.
The city hired an engineering firm who had several other jobs ahead of it. Also, Brookes said, it was a complex survey job.
That same parcel map was necessary to address other city projects, including the delineation of a parcel on Larrecou Lane that the city plans to trade to the Lakeport Fire Protection District for the site of its new main firehouse. In exchange, the city will receive a fire district-owned property on Bevins Court.
Brookes said Riveras' plan included possibly bringing in new tenants.
He said the council is anxious to get moving on the sale. Brookes said the council directed him to meet with Riveras to see “if we could get something accomplished” – including setting up a timetable for negotiations leading to a sale.
Brookes said of the shopping center, “Our hope is it is developed to the highest and best use that it can and that its physical appearance is improved.”
E-mail Elizabeth Larson at
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