LAKEPORT, Calif. – The Lakeport City Council on Tuesday approved an agreement to defer sewer and water expansion fees for a senior housing project.

The council voted 4-1 – with Councilman Marc Spillman the dissenting vote – to approve the agreement with Idaho-based Lakeport Pacific Associates for its 48-unit senior apartment project at 1075 Martin St.

The project’s estimated construction value is more than $5.3 million, with the total water and sewer expansion fees to be paid to the city totaling $496,096, according to the report to the council from City Attorney Steve Brookes.

Originally, the project was to have relied on redevelopment funds, Brookes said. However, after redevelopment was dissolved new financing was worked out.

The contract defers $346,096 of the $496,096 in fees due to the city for a period not to exceed two years from the date of the agreement or until a request for building occupancy is made, Brookes reported.

The updated contract Brookes presented to the council on Tuesday also included a 15-year $150,000 deferral fee loan at 3 percent interest, with payment to be made out of the project’s residual receipts, defined as “excess revenues that are generated by the operation of the housing project after all other debt service obligations.”

In previous discussions on the project council members had stated that they wanted the developer to buy local materials and use local contractors.

Brookes said four local contractors bid for the project. Two local contractors – Jeffers Pool’s and Mendo-Lake Flooring – were reported to have been selected.

The developer also is supposed to make reports every 30 days to the city on the complex’s progress.

“It’s a big project for Lakeport,” Brookes said.

City Manager Margaret Silveira said the complex is being certified as a platinum LEED project. LEED is a voluntary rating system promoting green building, with platinum the highest rating.

Councilman Martin Scheel asked Silveira if the project looked good financially. She said yes, adding the developer has an excellent reputation.

The project epitomized what a small city can do to build relationships with investors, according to Councilman Kenny Parlet.

Vice Mayor Stacey Mattina said the city was lucky to have the project after the loss of redevelopment. Under the plan worked out when redevelopment was still operating, she said the city had a much larger funding requirement.

Mayor Tom Engstrom said he’s already getting calls from community members interested in applying for an apartment in the complex.

Bob Bissell of Pacific West Builders, the project superintendent, gave the council an update on construction.

“We've got a lot of water on the site right now,” said Bissell, a result of this week’s rains.

He said they were working on retaining walls and on Thursday morning will start a French drain around the property.

Bissell said they will work as fast as they can to complete the project.

In other council business, Utilities Director Mark Brannigan received the council’s approval for adjusting the classification for the Westshore Pool manager and raising the pay from $16.50 to $20 per hour as part of an effort to recruit a qualified candidate for the job.

Council members voiced their support for the pool. “This is a great thing to have as a community resource,” said Parlet.

The council also updated and approved a letter supporting the House Gun Violence Task Prevention Task Force, chaired by Congressman Mike Thompson, agreed to partner with the Lakeport Main Street Association to install decorative new signage in the downtown area and directed staff to continue working with Mediacom on a request for an aerial easement in order to provide Internet service to Lake County Tribal Health.

Also on Tuesday, the council turned down a request from the Lake Local Area Formation Commission to meet with the county of Lake and resolve a dispute over the proposed annexation of the South Main Street area, as Lake County News has reported.

Correction: The original version of the story noted that there were four local contractors involved in the senior apartments project.

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