LAKEPORT – The city's budget, a sewer rate study, Vista Point and an affordable housing project are on the agenda for the Lakeport City Council at its meeting Tuesday.

The regular meeting will begin at 6 p.m. However, at 3 p.m. a City Council and staff workshop will take place, during which the city's proposed 2007-08 budget and a sewer rate study for the City of Lakeport Municipal Sewer District (CLMSD) will be discussed.

The city's budget then is scheduled to be approved during the regular meeting under the council's consent agenda. During the meeting the council, sitting as the CLMSD Board of Directors, will direct city staff to move forward with a rate increase for sewer customers.

Meridian Investments will give a presentation to the City Council regarding the Vista Point Shopping Center. At the Sept. 5 meeting, Jeff Walters of Meridian approached the council to ask for the opportunity to submit a proposal to purchase the shopping center, where Meridian holds the lease.

The city already has begun negotiations on Vista Point with Matt Riveras, a Sonoma County developer whose father-in-law is Councilman Buzz Bruns. Bruns has had to recuse himself from all closed session discussions on the center because of that relationship.

Housing project developer requests loan

The council also is set to discuss an affordable housing project that has been on the drawing board for some time.

Terra Partners of Sebastopol is proposing to build a 62-unit affordable, multifamily housing project on a five-acre parcel at 1075 Martin St., at the corner of Bevins Street. A staff report from Community Development Director Richard Knoll explains that Scott Johnson of Terra Partners has worked with city staff for the past 16 months to develop the project.

Terra is now seeking a $600,000 loan from the city's Redevelopment Agency to purchase the property, which has been appraised at $588,000, according to Knoll's report. The council and redevelopment agency previously voted to set aside money for the loan after determining the project to be a high priority.

The project, which Knoll said is estimated to cost $18.5 million, is seeking funds from several sources besides the Redevelopment Agency, including state and federal grants, tax credits, fee waivers and deferred developer fees.

According to state law, cities must meet affordable housing goals, Knoll reported. From 2003 to 2008, Lakeport is supposed to build 367 affordable housing units. His report did not include the number of how many units, if any, have been built so far.

There is a risk involved in loaning the money, said Knoll, with a possibility that the project could fall through if additional funding isn't acquired. However, if the developer defaulted on the loan the property would go to the city, which could then resell it.

The major issue right now, Knoll reports, is that the Redevelopment Agency's Low and Moderate Housing fund only contains $483,235. The agency is projecting revenues of $179,000 in the coming year, which would allow the city to grant the full loan.

Knoll's report notes, "There is a significant amount of additional work yet to be done to move this project through the financing and entitlement process."

However, he notes that the project will not just benefit the population but also the local business community.

In other business scheduled for the Tuesday meeting:

• Sponsoring Survivorship is requesting approval of an application to hold its annual Oct. 6 walk-a-thon to benefit women battling breast cancer.

• The council will present a proclamation naming Sept. 17-23 as Seaplane Appreciation Week.

• Dr. John Winslow will give a presentation regarding a project at 302 Armstrong St.

Following the open session, the council will adjourn into a closed session for continued discussions on Vista Point.

The Lakeport City Council meets at Lakeport City Hall, 225 Park St.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it..

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