On Tuesday, the Board of Supervisors – sitting as the Redevelopment Agency's Board of Directors – debated the agency's request for direction on whether or not to investigate purchasing Holiday Harbor, a 4.2-acre property at 3605 Lakeshore Blvd. in Nice, one block from Highway 20.
Holiday Harbor had, until recently, been used as a trailer park. In recent months, however, the park's tenants have been vacated and the property was put on the market for $2.9 million, according to a report to the board from Supervisor Denise Rushing and Deputy Redevelopment Director Eric Seely.
Seely told the board Tuesday, “We believe there may be an opportunity to acquire the property for less than the $2.9 million asking price.”
The property's central location lends itself not only to a waterfront development with a full-service marina, but also a town center, said Seely, who noted during the meeting that it could have as many as 120 boat slips. “This would provide Nice with an asset no other community currently has.”
Seely added that the county already owns a “significant amount” of property adjoining Holiday Harbor, which could be incorporated into a development project. In addition, the county would not have relocation obligations because the tenants already have been cleared.
One challenge, said Seely, would be connecting the site to the Highway 20 corridor a block away. That could be resolved by removing or configuring improvements on a few properties between the highway and the property.
Up until this time, Hinman Square had been slated to become the city's town square, said Seely. In recent months the county's parks department has worked on the square's construction.
However, Holiday Harbor “appears to have a much greater potential” as a town square, said Seely, with the added benefit of being an economic development engine. It's also located close to the WorldMark resort.
The opportunity to buy the land appears to have brought the Redevelopment Agency to a crossroads in its plans for Nice.
While properties around Hinman are for sale at “attractive prices,” and the Holiday Harbor purchase would be much more expensive, Seely and Redevelopment Director/county Chief Administrative Officer Kelly Cox both voiced concern that the Hinman plan might not generate enough of a positive economic impact for the town.
The agency could pursue both projects, but even if it chose only one of them Seely and Cox surmised that the agency would need to take a loan or issue bonds to do so.
Incurring debt for the agency, however, isn't necessarily a bad thing.
Board Chair Jeff Smith said that the county is now coming to the time when redevelopment must generate debt. “I know that sounds strange but that's how it's supposed to work.”
Seely explained that the idea is for redevelopment agencies to incur debt early in their lifespan in order to generate revenue for the community.
Rushing said Holiday Harbor could be a “transformational” property for Nice. “It's the de facto town center today.”
Cox said the Redevelopment Agency has yet to determine its major projects. “We haven't identified the projects we're going to be investing millions of dollars in,” which needs to be done soon, Cox said.
Supervisor Rob Brown said he didn't want to close the door on the plan, but said he has problems with overextending the county in making the purchases.
He said the agency was jumping around from project to project, but not finishing any of them.
Cox replied that the agency had just bought Clark's Island – escrow closed Tuesday, he said – and the Clearlake Oaks Plaza and Lucerne's Third Street area will have projects constructed in the spring, both of which are funded.
“We've been doing a lot of work, so I beg to differ with you that nothing has been finished,” said Cox.
Rushing said that a group of artists and citizens have suggested an alternate plan for Hinman Square, that it be the site of a community – rather than a commercial – center.
“We can't own it all,” replied Brown, who said some of the land has to be left for the private sector.
Smith said he recently took a trip around the Northshore to look at some of the redevelopment projects, and noted he was “blown away by a couple of them,” including Clearlake Oaks' Nylander Park project.
“It's going to spur so much excitement in these communities when we take over and do this,” said Smith, who added he doesn't want to pass up opportunities the county will regret in later years.
He further suggested that the county can always decide later to sell the land to a private developer with “strings attached” to include certain features like a marina.
Cox said it's a big plan, and he credited Rushing for being willing to look at a larger possibility.
“I'm a little concerned about how much money we're going to be able to invest,” said Cox.
If the county decides to choose between Hinman and Holiday Harbor, Cox suggested they should pick the one with the best investment and revenue potential.
Finley resident Phil Murphy said he shared Brown's concerns about the possible purchase. He asked about the likelihood of keeping boat slips occupied.
He pointed out that Konocti Vista Casino recently put in an 80-slip marina, and asked about it occupancy, figures which Seely said he didn't have. Seely did, however, say Braito's Marina has a waiting list.
Murphy pointed that Braito's, located in Buckingham, is in a “different neighborhood.” He wondered if the county could make a go of the property if private ownership so far had not been able to do so.
Rushing responded, saying that a proposed RV park project that had fallen through there didn't have any issues with the marina specifically. The issue, she said, was that there wasn't enough land to develop in order to generate the revenue they were seeking.
The outcome of the discussion was that Rushing moved to direct Redevelopment Agency staff to continue investigating the purchase further.
Despite the concerns he voiced about the property, Brown joined the rest of the board in voting to continue a look into the purchase.
E-mail Elizabeth Larson at
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