County redevelopment agency and Mental Health staff went to the board with the request.
Deputy Administrative Officer Matt Perry said the county wants to have the Lucerne Hotel, which it recently purchased, as the anchor property in the town, and now wants to develop properties along 13th Avenue, which the redevelopment plan proposes to be the town's new commercial center.
Perry said Mental Health's lease at its Lakeport offices expires next June, and staff was proposing to relocate to Lucerne's 13th Avenue.
He said they wanted a 9,000-square-foot building, with 8,000 square feet for office space and 1,000 square feet to use as separate commercial space.
The goal is to have a building with a Swiss alpine architectural theme and other design elements in keeping with the town's theme, he said. Mental Health would then lease the building for 10 years.
County Administrative Officer Kelly Cox said the county currently doesn't own any properties on 13th Avenue.
Board Chair Anthony Farrington asked how many employees would be moved to the facility. Staff said about 40 employees.
Cox said the county was trying to spread the wealth of its employment base.
Farrington asked why they weren't looking at purchasing land. Cox said they were, but added that the Mental Health Department could draw down state and federal funds to cover rent. It doesn't have any funds for an office building, but can fund other facilities.
County staff told the board that they were looking not to exceed $1.40 per square foot. They're currently spending $1.65 per square foot for the Lakeport offices.
Mental Health Director Kristy Kelly said the Lakeport location, on Parallel Drive, serves both administration and clinic purposes.
She said Clearlake has the largest number of clients, but the Nice and Lucerne area is second.
The Lakeport building is 12,000 square feet, and they only need 8,000 square feet, especially after eliminating a number of positions, Kelly said.
Kelly said she met with the building's owner, Nancy Ruzicka, about a year ago when the department suffered cuts of about $500,000.
Supervisor Denise Rushing said the vision for 13th Avenue is a business district, and Cox suggested this is the first step in fulfilling that vision. Cox added that it would show investors that the county is serious.
Deputy Redevelopment Director Eric Seely said that, beginning in the 1920s, 13th Avenue has been seen as Lucerne's downtown core, and the redevelopment agency is attempting to implement that vision, which had been put off until after the agency had site control of the Lucerne Hotel.
He said the architectural vision the agency is working towards would be a two-story, mixed-use building with a downtown feel such as was common from the 1920s through 1940s.
Cox noted that 13th Avenue is incredibly wide, and could facilitate a lot of parking, including a large center median.
“It would be a downtown street area that I think no other community in Lake County has,” he said. “It was really planned to be this from the start, and then it got lost in the depression.”
Supervisor Jeff Smith noted that the county has property in Clearlake. Cox said Mental Health has a presence in Clearlake, including a drop-in center, but doesn't envision moving all of the department's facilities there.
Farrington suggested that, sooner or later, there will be a shift of dollars and requirements for department expansion, and he was concerned about the department being locked into a 10-year lease.
He also suggested there will be a demand on parking, which Cox said the redevelopment agency could develop. There also is a parking area near the Lucerne Hotel, he added.
Supervisor Jim Comstock said he thought it was fitting that the original vision for the building is finally being implemented. Comstock suggested it will eliminate some travel for Northshore residents, and asked about the percentage of clientèle from Middletown. Cox said they're being served in Clearlake.
Farrington asked if there was a dialog about acquiring the current Lakeport facility or the square footage cost. Kelly said she had several talks with Ruzicka, who was willing to reduce the costs if they extended the lease another five years.
Kelly said the Mental Health Department owns a nice-sized parcel on Bevins Court in Lakeport, and had anticipated developing it as a clinic site, but the county hasn't been able to do the planning because the Lake County Superior Court is looking at an adjacent parcel. Then this opportunity came up.
Farrington asked what they would do with the Bevins site. Kelly said she wants to hang onto it until they know what can be done with it.
Ruzicka told the board that she offered to freeze the rent at $1.36. She said the square foot rates around the county range from $1.35 to $2.22.
Noting that she would like to see the county do more lease purchases, Ruzicka suggested the county was putting the cart before the horse. She said the county should buy the lots first, then sell them to the developer.
Rushing moved to approve the request to issue the proposals, which Smith seconded. The board voted 4-1, with Farrington voting no.
E-mail Elizabeth Larson at
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