CLEARLAKE, Calif. – Another task in the dissolution of the Clearlake Redevelopment Agency was completed as the Clearlake City Council took action as the redevelopment successor agency on Thursday.
A long range property management plan, developed by Fraser & Associates, was presented and adopted by the agency in line with the state's process to dissolve the redevelopment program.
David Spilman, special consultant to the agency, said the State Department of Finance issued a finding of completion letter to the agency in April.
He called the finding a milestone in the redevelopment dissolution process. The process requires that the agency develop a long range property management plan for approval by the Department of Finance by Oct. 22.
The plan's purpose is to detail the type, uses and values of agency property, and identify a plan for disposal of assets in a planned manner that will generate the greatest amount of revenue for redistribution to the county, city and other local agencies.
The agency has 27 properties, including multiple lots, which Fraser & Associates consultant Anastasia Efstathiu said were reviewed by each type of property, history and original purchase, current value, environmental issues and certain planning objectives.
She said the Department of Finance can now accept or reject the plan; however, it is likely it may accept the plan yet continue to reject certain properties that Efstathiu addressed in her presentation of the plan to the agency.
The plan identifies properties in three categories: properties retained for government use, properties to be retained for future government use and properties proposed for disposition.
In addition, the plan identifies one property for future disposition and private development when economic conditions improve.
Properties identified for retention for government use include Clearlake City Hall, the Public Works corporation yard and property required for drainage.
Efstathiu said the Department of Finance has approved these properties for such use in the plan; however, future development may warrant the disposition of some properties in the area of the Public Works corporation yard.
Should this occur, she said the corporation yard would either need to be relocated or consolidated onto one or more of the existing parcels. The property would then be sold and net profits distributed to applicable taxing entities.
The three properties identified for future government use are not being accepted by the Department of Finance, Efstathiu said. The properties include two adjacent to the corporation yard that should be retained for future road circulation improvements.
The third property is that located at 14295 Lakeshore Drive, which was purchased with the intent to expand the adjacent public lakefront park and renovate an existing dilapidated structure for use as a visitor center.
Efstathiu said the firm will continue to appeal the Department of Finance's ruling. With regard to the Lakeshore Drive property, they are arguing that the intent to use the property was clearly there and that redevelopment's plan was in motion prior to the agency's dissolution.
A total of 16 properties are identified for disposition. The objective of the disposition plan is to sell the subject properties for private development consistent with the city's general plan and existing zoning ordinance land use designations.
Additionally, property located at 14061 Lakeshore Drive, in the area of city-owned property known as Austin Park Resort, is identified for future disposition.
Efstathiu said the property has been identified as being an essential component in the city economic development plan and should be held for future disposition when the real estate market has improved.
Councilman and agency member Joey Luiz recused himself from the vote, citing a possible conflict with regard to his new position with the Clearlake Chamber of Commerce.
The remaining agency members voted unanimously to adopt the plan.
In other dissolution business, like actions were taken by the agency and the council to approve a revised loan agreement for past city loans to the redevelopment agency.
The city made loans totaling nearly $1.8 million to the former redevelopment agency.
Email Denise Rockenstein at
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