On Tuesday, the Board of Supervisors – sitting as the Redevelopment Agency Board of Directors, voted to donate a Clearlake Oaks property to Eskaton Clearlake Oaks Manor Inc., a local nonprofit organization established to develop and operate the housing facility.
Carmichael-based Eskaton Senior Residences and Services plans to build the project, and formed the nonprofit, Deputy Redevelopment Director Eric Seely told Lake County News on Wednesday.
The nonprofit's board will include community members and representative from Eskaton, Seely said.
The 23-unit project, Seely said, is scheduled to go before the county Planning Commission on April 24.
Chief Deputy Administrative Officer Matt Perry told the board Tuesday that the Redevelopment Agency purchased the one-acre property at 75 Lake St. for an affordable housing project, which originally was to have been located two miles east of Clearlake Oaks at 14102 E. Highway 20. The purchase price was $560,000.
On Feb. 12, Perry reported, the Redevelopment Agency entered into an option to purchase agreement with Eskaton Clearlake Oaks Manor Inc. to sell the group the property.
The purchase price is for $560,000 based on certain conditions, including completion of an environmental assessment, grant funding approval and a final agreement between the agency and the nonprofit, Perry reported.
However, Eskaton recently told the county that the project's construction budget has a $621,000 deficit. In order to keep the project on track, it requested that the county donate the property and also assist with $32,000 for sidewalks, which Perry said the agency can provide through Community Development Block Grant funding.
In exchange, Eskaton offered to cede to the county its share in the property at 14102 E. Highway 20, which was purchased for $256,000, with Eskaton providing $111,000 and the county paying $145,000, Perry reported.
Perry said the Redevelopment Agency is legally obligated to produce between 16 and 30 housing units for low- and moderate-income households by 2011. Redevelopment has funds set aside for assisting with the housing, which he said is enough to meet future expenditures without requiring payment for the Lake Street property.
By helping Eskaton, Perry said the county would get the credit for the 23 housing units, which will be produced at just over $24,000 per unit.
Supervisor Denise Rushing said she had received a call from a Clearlake Oaks citizens board offering their support of the housing, and noting they already had potential tenants lined up.
Supervisor Anthony Farrington asked about the reason for the deficit.
“This project has always been underfunded,” said Perry.
Farrington asked what guarantee the county would have that, after donating the land, the units actually would be built? Perry said the agreement between the county and Eskaton would contain several conditions to ensure the project came to fruition or reverted back to the county.
Kelly Cox, the county's chief administrative officer and redevelopment executive director, said they're on a tight time frame with their grants so the project has to move forward quickly.
If the project doesn't work out, Cox said the county might have to put the land on the market.
Rushing said the project is a good one, and Supervisor Jeff Smith agreed.
The board unanimously approved Rushing's motions to donate the land and offer the $32,000 for off-site curb, gutter and sidewalk improvements.
Seely told Lake County news that Eskaton hopes to break ground in June on the two-story, senior independent living project.
“We're shooting for a completion date of April of '09,” he said.
E-mail Elizabeth Larson at
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