Pacific West Communities Inc., which has offices in Eagle, Idaho and Sacramento, proposes to build the 48-unit project – with a total price tag of just over $11 million – at the corner of 1075 Martin St., the site of previously proposed affordable housing projects, as Lake County News has reported.
Mayor Jim Irwin – whose father, Bill Irwin, is a developer proposing another affordable housing project to the city – recused himself from the discussion on the advice of counsel, citing a potential conflict of interest. The gavel was passed to Councilman Bob Rumfelt.
Mike Kelley, Pacific West Communities Inc.'s development acquisitions manager, gave the council an update on the project.
The Lakeport Planning Commission approved the project's application the previous night, according to Richard Knoll, the city's redevelopment, housing and economic development director.
The city is pursuing a HOME Grant offered by the California Department of Housing and Community Development.
“Financing projects these days is pretty tricky,” said Kelley, noting the highly competitive financing environment.
Kelley said Pacific West Communities has 80 completed projects it owns and operates for a total of 4,500 unites. It has never sold any of the units, he noted.
The majority of the organization's projects – more than 50 – are located in California, and all are of an affordable nature, he said.
Kelley showed pictures of recently completed projects in Farmersville, Oakley and Truckee, as well as a project in Jackson Hole, Wyo.
The amenities at the projects included swimming pools, covered parking, computer learning centers, community gathering rooms with large kitchens, and onsite laundry facilities.
The project's funding is proposed to come from a variety of sources, including USDA Rural Development, about $1.1 million in redevelopment funds from the city, $5 million from federal and state tax credit equities, the $3 million HOME Grant, he said.
Expenses include land costs, expected to total about $570,000, with construction estimated to cost about $6.9 million and financing costs at $360,000, Kelley explained.
The project will have green building features, and both the city and the USDA will have a say in how it's done.
“These are very well managed projects,” he said.
Council member Suzanne Lyons asked if they use local construction. Kelley said yes.
Bill Irwin told the council it was great that Lakeport can attract developers to fulfill the city's housing needs.
However, he questioned if the $3 million grant would preclude the city from receiving other funds in the future, which City Manager Margaret Silveira said it wouldn't.
He also said that the project's cost per bedroom is $187,000 compared to $78,000 “on another project,” an apparent reference to his proposed plan.
Lyons moved to approve the application, which the council approved 4-0.
In other council news, in an hour-and-a-half-long workshop before the regular meeting, the council discussed and approved the downtown improvement plan, minus proposals for palm trees and new bike lanes, and voted down an ordinance to increase the retirement benefits for Lakeport Police officers, as Lake County News has reported.
At the start of the regular meeting during public comment, Lake County Chamber of Commerce Chief Executive Officer Melissa Fulton reported that the chamber had a very successful fireworks fundraiser, bringing in $11,000. She gave Irwin a check for $4,325 and said the rest of the money will be put in an interest-bearing account for the 2011 fireworks display.
Also during public comment, community member Carter Irwin asked the council to consider waiving its rules against fliers to offer information to boaters about the quagga mussel.
After City Attorney Steve Brookes suggested the city could have a public safety information waiver to the rule, the council agreed to put the issue on a future agenda.
City staff was authorized to issue a request for proposals for engineering design services for the Armstrong Street Pedestrian Improvement Project, the council gave staff the go ahead to form an economic development advisory committee and selected Suzanne Russell to succeed John Marino on the Lakeport Planning Commission.
In addition, the council approved a new contract with the county of Lake for animal control services, which Silveira said is essentially the same contract as Police Chief Kevin Burke negotiated with the county last year, with some additional savings in impound costs.
“The caliber of the service rendered by the county was excellent,” said Burke, adding, “It's worked very, very well.”
E-mail Elizabeth Larson at
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