THIS ARTICLE HAS BEEN CORRECTED WITH ADDITIONAL INFORMATION ON THE FINAL MOTION.
LAKEPORT, Calif. – The Lakeport City Council quickly moved through a short agenda Tuesday night, encouraging the development of a proposal for a housing project, as well as staff requests relating to the Library Park bathroom rehabilitation and a fuel cardlock system.
Councilman Roy Parmentier was absent during the hour-long meeting, most of which was focused on redevelopment business.
Redevelopment, Housing & Economic Development Director Richard Knoll presented to the council – sitting as the redevelopment agency – the request from Northern Circle Indian Housing Authority for $120,000 in Redevelopment Agency Housing Set Aside funds to assist with subsidizing the placement of two new modular homes on city lots.
Pointing out the questions about redevelopment – “We don't know what next year will bring in terms of additional revenues” – Knoll said he and interim Finance Manager Dan Buffalo did a financial analysis of available redevelopment funds, some of which could fund the request.
He outlined several other projects to which $458,000 in housing set aside funds already are dedicated. The balance in the housing account after those projects is $648,000.
There also are other projects still working their way through the pipeline, including that of Bill Irwin, who the redevelopment agency directed staff to work with last year on the affordable housing component to his Victorian Village project on S. Main Street.
Knoll said staff had been engaged in those discussions over the last several months but haven't come to a formal agreement.
“I guess the question would be, is there sufficient funding available to commit to this project,” Knoll said of the Northern Circle Indian Housing Authority proposal. “There is a limit to what the agency can provide.”
He acknowledged that, technically, the agency has enough funding to commit to the project.
Councilman Tom Engstrom asked where the homes would be located, Knoll said that hasn't been settled yet, but some of the potential locations included the corner of Forest and Sunset Drive, where there are two tax default lots which the city is working to acquire from the county tax collector.
Council member Stacey Mattina questioned numbers in documents submitted as part of the proposal. In particular, she pointed out that a 1,200 square foot, three bedroom manufactured home would cost around $194,000, while a 1,404 square foot, four bedroom manufactured home was priced at $211,000, but that both would likely appraise between $140,000 and $150,000.
Knoll explained, “The appraised value in this market, it's upside down. That's where the subsidy comes into place.”
He said that two of the lots where they were considering placing the homes have dilapidated homes, so the projects would improve the neighborhoods.
Mayor Suzanne Lyons asked if the Northern Circle Indian Housing Authority would manage the property. Knoll said the homes would actually be sold, explaining that the program is like a first-time home buyer program.
Knoll told the council, “What's really being asked for tonight is a reservation of funds.”
Former Councilman Ron Bertsch urged the council against funding the project. “I just don't see the funds being there.”
He said he looked at the proposal and it would allow up to nine people in a four bedroom home, which would be crowded.
Irwin also addressed the council, saying that the proposal confirmed that he is able to offer the city higher quality homes at a lower price.
He suggested that putting the city's funds into a noncollateralized position was “not wise.”
Irwin said he has been diligent in pursuing his project, which began with 12 homes and has since been adjusted down to six.
Engstrom asked Knoll if he had a recommendation.
Knoll said it was important to explain that it is not unusual for redevelopment agencies to subsidize such projects and not to be in a secured position. The fundamental goal, he said, was producing housing.
“We've got seven projects in the queue,” noted Councilman Bob Rumfelt.
He pointed out that sometimes projects start and then hit funding problems. Rumfelt added that he didn't feel it hurts anything to have it the project in the queue.
Engstrom moved a proposed motion to support the project with no formal reservation of funds, but encouraging Northern Circle Indian Housing Authority to proceed with putting together a project to be brought to city staff to review and put together a project to bring back to the council, according to wording clarified by City Clerk Janel Chapman.
Rumfelt seconded, with the council approving it 4-0.
In other council business, the council approved putting out a request for quotes to plumbing contractors for the installation of new equipment as part of the rehabilitation project on Library Park's bathrooms, presented to them by Public Works Director Doug Grider.
Grider also received the council's approval of his request to approve a fuel cardlock system, which would electronically track fuel use – an improvement from the labor intensive manual tracking Grider's staff now must do – and prevent fuel theft.
In presenting the item Grider said it was a more complicated issue that the bathrooms, to which Lyons quipped, “How complicated can a stick in the gas tank get?”
The council also unanimously approved the ninth contract change order for the South Main Street Pedestrian Improvement Project, in the amount of $1,500, to relocate a water meter box from its originally planned position on Main Street to a location.
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