LAKEPORT, Calif. – The Board of Supervisors on Tuesday will consider giving approval to the final lease agreement with Marymount College for the Lucerne Hotel.
The meeting will begin at 9 a.m. Tuesday, Oct. 23, in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport. The meeting will be broadcast live on TV8.
In a discussion timed for 9:45 a.m., the board will take up the 15-year lease for the historic 1920s-era building, which is 75,000 square feet and sits on seven acres.
The Southern California-based Marymount College – a Catholic, four-year liberal arts college – proposes to use the Lucerne Hotel for its third campus.
In a meeting on Saturday, Oct. 13, Marymount’s board of trustees approved the lease, which has been in the works since earlier this year, according to a report to the board from interim County Administrative Officer Matt Perry.
Perry’s report said the lease “is consistent with the intent and framework” set forth in the memorandum of understanding the college and county approved in June.
Developing a four-year college campus in Lucerne as a public-private partnership “is one of the most transformational projects” the county government has undertaken, “both in terms of its potential to positively impact our local economy and to provide educational opportunities not previously available to our residents,” according to Perry.
The lease is to be for 15 years, with the rate at $1 a year for the first five years. Beginning in year six on July 1, 2018, and for the remainder of the lease, Perry said the rent shall be equal to 50 percent of Marymount’s net annual revenue generated at the premises, which shall not be less than $85,000 nor more than $250,000 per year.
In addition, both parties must consent to terminate the lease in the first five years, while either party may terminate it after giving 12-month advance written notice of termination after year five.
Perry reported that the lease offers Marymount the option to purchase the building at any time within the lease term.
If the college purchases the building before June 30, 2018, the price is $2.5 million plus an amount equal to the costs incurred by the county from Jan. 1, 2012, forward in renovating the building. The purchase price goes up 5 percent annually beginning July 1, 2018, Perry said.
“We are optimistic and excited for the long-term success of this project; however, we do recognize the risk,” Perry wrote. “Therefore, one of our guiding principles throughout the lease negotiations was to ensure that renovations to the building funded by the County are those which the County would have undertaken if the Hotel was to be operated as a conference center. Therefore, County investment in the property would not be lost should the facility no longer be operated as a college campus.”
He continued, “To reflect our confidence and commitment to this project, the County agrees to a less than market rental rate for the first five years in order to provide Marymount with the opportunity to build student enrollment and revenue needed to establish and sustain a viable campus at this location. Furthermore, Marymount shall make capital improvement investments in the facility during this period that will be of benefit to the County, as well as Marymount. The lease reflects the shared vision, shared risk, and shared benefit of this partnership as stated in the MOU.”
Over the last several months, as part of its work to form the partnership, Perry said the county has continued renovating the building and benefiting local businesses in the process.
“In the last fiscal year, 32 of the 35 contractors who worked on the Hotel were local contractors, and 82 percent of the dollars spent by the County on renovations was paid to local contractors and vendors,” He said.
Not counting the amount spent for asbestos removal – he said they could find no qualified local contractor – more than 98 percent of the renovation dollars were spent locally.
The county is responsible for continuing to renovate the building and providing four classrooms, a student learning center area, an administration office, student common areas, and other areas of the structure Marymount is to use by July 1, 2013. A fifth classroom is to be completed by Jan. 1, 2014.
Marymount is responsible for renovations beyond those agreed-upon upgrades, as well as installing interior Internet broadband connections and exterior monument signage, with future improvements proposed to include a kitchen, student dormitory rooms, faculty residences, faculty offices and lounge, other office space, laundry facilities, computer labs, server room, recreational rooms and other common areas.
The county will maintain the building’s structural components and Marymount will provide janitorial services and maintain the building’s interior, Perry said.
Perry said the building’s primary use is for educational purposes. Marymount may sublease portions of the building to other educational entities or other organizations for educational programs and also may occasionally rent certain portions of the premises on a daily basis for private events – except for those
with a commercial or political purpose.
The lease also allows the county use of the building for two events per year, either government or county-sponsored community meetings.
Also on Tuesday, in an untimed item, the board will consider acquiring surplused SolarBee units for use in algae abatement efforts in Soda Bay.
The full agenda follows.
TIMED ITEMS
9 a.m., A-1 to A-4: Approval of consent agenda, which includes items that are expected to be routine and noncontroversial, and will be acted upon by the board at one time without discussion; presentation of animals available for adoption at Lake County Animal Care and Control; consideration of items not appearing on the posted agenda, and contract change orders for current construction projects.
9:05 a.m.: Citizen's input. Any person may speak for three minutes about any subject of concern, provided that it is within the jurisdiction of the Board of Supervisors and is not already on the agenda. Prior to this time, speakers must fill out a slip giving name, address and subject (available in the clerk of the board’s office, first floor, courthouse).
9:10 a.m., A-5: Presentation of proclamation designating the week of Oct. 22-30, 2012, as Red Ribbon Week.
9:15 a.m., A-6: Presentation of proclamation commending Charles Villines on his years of service to the county.
9:30 a.m., A-7: Hearing, nuisance abatement of 10337 Pinewood Way, Whispering Pines, CA (APNs 050-261-16, 050-261-12 & 14 – Joan Fontaine and Dorothy Fontaine).
9:45 a.m., A-8: Consideration of proposed lease agreement between the county of Lake and Marymount College for the establishment of a college campus at the Lucerne Hotel.
NONTIMED ITEMS
A-9: Supervisors’ weekly calendar, travel and reports.
A-10: Consideration of proposed acquisition of surplused SolarBee units for use in algae abatement efforts in Soda Bay.
A-11: Consideration of proposed resolution of support of enforcement of AB2284 (Chesbro) allowing law enforcement to conduct vehicle stops on vehicles carrying irrigation equipment on public lands.
A-12: Consideration of proposed resolution accepting and confirming ballot tabulation for the establishment of Zone R (Chippewa South) of County Service Area No. 23, approving formation of Zone R and assessments for Zone R road maintenance.
A-13 Consideration of request to award Bid No. 12-14 for the construction of the Victoria Drainage and Channelization and Culvert Upgrade Project in Lucerne (Federal Project No. HMGP 1646-15-05R).
CLOSED SESSION
A-14: 1.Conference with labor negotiator: (a) County negotiators: A. Grant, L. Guintivano, M. Perry, J. Hammond and A. Flora; and (b) Lake County Correctional Officer's Association, Lake County Deputy District Attorney's Association and Lake County Employees Association.
A-14: 2. Conference with legal counsel: Existing litigation pursuant to Government Code Sec. 54956.9(a): Estate of Hatfield v. County of Lake, et al.
A-14: 3. Conference with legal counsel: Existing litigation pursuant to Government Code Sec. 54956.9 (a): Dinius v. County of Lake.
A-14: 4. Conference with legal counsel: Existing litigation pursuant to Government Code Sec. 54956.9 (a):Hawley Ranches, et al. v. State of California, et al.
CONSENT AGENDA
C-1: Approve minutes of the Board of Supervisors meetings held on Aug. 29, Oct. 2 and Oct. 9.
C-2: Adopt proclamation commending Charles Villines on his years of service to the county.
C-3: Approve agreement between the county of Lake and the Lake County Chamber of Commerce for FY 2012-2013 marketing, economic development and visitor information services, in the amount of $50,000, and authorize the chair to sign.
C-4: Resolution approving Agreement No. 12-0130 with the state of California, Department of Food and Agriculture and authorizing execution of the contract and signature for insect trapping activities for Fiscal Year 2012-13.
C-5: Approve request to allow for solicitation of individual donations to support the community cat spay/neuter program.
C-6: Approve the Connector Model Service Agreement (county retiree health plans for age 65 and older Medicare recipients), and authorize the chair to sign.
C-7: Approve two-year agreement between the county of Lake and BC Labs Inc., for an amount not to exceed $47,000, for water sampling and analysis at the Eastlake Landfill and authorize the chair to sign.
C-8: Approve permit to conduct aeronautical activities at Lampson Field Airport (Steve’s Aircraft) and authorize the chair to sign.
C-9: Adopt resolution amending Resolution No. 2012-107, amending position allocation for Fiscal Year 2012-13 in BU 5011, Social Services (addition of one deputy social services director position).
LAKE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS
C-10: (a) Approve easement deed and direct clerk to certify for recordation (APNs 010-043-36, 010-043-38, 010-43–043-39 & 042-122-26 – City of Clearlake), and approve right of way agreement between the county of Lake and the city of Clearlake for the construction of the wastewater force main sanitary sewer line, and authorize the chair to sign agreement.
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