LAKEPORT – Representatives from two Bay Area companies went to the Lakeport City Council Tuesday to ask for an opportunity to make a purchase proposal for the Vista Point Shopping Center.
The presentation from Jeff Walters on behalf of Oakland-based Meridian Investments, which holds the lease on the shopping center's buildings, and Easton McAllister of Presidio Development Partners LLC of San Francisco included a vision of redeveloping the center to be a gateway to the city, with estimations of revenue for the city between $300,000 and $500,000 annually.
However, Meridian and Presidio won't get their chance to make a proposal, at least not now.
The City Council adjourned from open session shortly before 8 p.m. and held a 20-minute closed session discussion on negotiations for the shopping center.
They emerged at 8:15 p.m. with Mayor Roy Parmentier announcing that the council had decided to sell the shopping center land and its lease for $1,001,000 to Matt Riveras, a Sonoma County developer who also owns a home in Lakeport and is the son-in-law of Councilman Buzz Bruns.
Because of his family relationship with Riveras, Bruns had to recuse himself from the closed session, as he's had to do in other sessions related to the negotiations.
Councilman Jim Irwin, who had a contractual agreement for a $500 contribution for a common fence between homes he and Riveras were building in Lakeport's Lands End neighborhood, also sat out of the discussion on City Attorney Steve Brookes' advice.
That left Parmentier, Ron Bertsch and Bob Rumfelt to make the decision, counseled by City Manager Jerry Gillham.
On Aug. 3, the council voted to enter sales negotiations with Riveras. He was one of only two individuals – the other being Barry Johnson, owner of Willopoint Resort – to submit formal bids for the property.
The city's appraisal of the 9-acre parcel valued it at $900,000 “as is,” as Lake County News previously reported. Also being sold is the lease, held by Meridian.
Parmentier said the Vista Point sale is for cash. Riveras now has seven days to accept the city's terms and deposit $90,000 in an escrow account. Escrow must close 14 days after that seven-day period or the deal falls through, Parmentier said.
The terms of the sale do not have any effects on the lease holders, Parmentier said.
Meridian holds a lease on the property with 21 years remaining on it, said Walters, which the city also is selling to Riveras. That means that, while Riveras owns the land and can collect the annual rent – amounting to $42,337.37 for the 2006-07 fiscal year and rising 5 percent annually – the buildings and their renovation still fall to Meridian's responsibility.
Having less than a 30-year lease also makes it difficult to attract some potential businesses, said McAllister.
Walters told the council during his presentation that one of the keys to successfully redeveloping Vista Point is unity of the lease and property ownership.
In the plan Walters and McAllister set forth, Presidio, a company with retail and mixed use projects across the US – including downtown Boise, Idaho, San Francisco's Financial District and Spokane, Wash. – would be the managing partner, with Meridian bringing the lease as an asset into their partnership.
"There is tremendous untapped tax revenue potential for this property," said Walters.
He and McAllister emphasized a desire to put in a purchase offer and move forward on a sale within 30 days. They said they would redevelop the site according to city, community and market demands.
Bruns asked why all of a sudden they were interested in the shopping center. "We've been staring at that monstrosity up there for five or six years."
Walters, who is from the East Coast, explained that he became involved with Meridian in August, following the sudden death of his father, Bill Walters, a Meridian partner.
At that point Jeff Walters came to Lakeport and started evaluating Vista Point, concluded that it offered a great opportunity for the business and the city, and assembled a team including Presidio and experienced investors to approach the city with its proposal.
Walters spoke to the council Sept. 4 to ask for the opportunity to submit a bid.
He told the council Tuesday that there are hindrances to success if the land and lease are owned separately, an issue the Presidio-Meridian partnership would address.
Walters said in an interview after the City Council's open session that Meridian had, in the past, approached the city to purchase the property.
The main obstacle, said Walters, was that the city lacked a parcel map for the property. "You can't sell something you can't define."
The city finalized a parcel map on Vista Point in April, which concluded an effort that stretched over the last few years.
Riveras contacted Meridian early in the negotiation process, said Walters, but that they have not had any further discussions with him about the property or lease.
Walters said Meridian remains committed to rehabilitating the 113,288 square foot shopping center, and that he met with a local property management company Tuesday to explore property uses.
"I'm sorry we're late to this dance," said Walters.
E-mail Elizabeth Larson at
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