LAKEPORT, Calif. – With the city of Lakeport hoping to finalize escrow this month on a new police department headquarters building, the Lakeport City Council last week took action to reimburse the general fund for expenditures for the project.
At the council's Feb. 3 meeting, city Finance Director Dan Buffalo presented the resolution of intention to reimburse certain general fund expenses related to the purchase and upgrades to the building, located 2025 S. Main St.
The city has entered into a purchase agreement with owner Jean Howe of Santa Rosa to buy the building for $875,000, as Lake County News has reported.
The building, constructed in 2002, formerly housed the Social Security Administration. It's just under 4,400 square feet, making it almost 1,400 square feet larger than the Lakeport Police Department's current building at 916 N. Forbes St., where it has been since July 1999.
The council unanimously approved the resolution to reimburses the costs.
Buffalo told Lake County News in a followup interview that the city is pursuing US Department of Agriculture Rural Development community facilities loan funds to help finance the new police headquarters building purchase.
“The premise that we're working on now is that the general fund will pay for it upfront and will be reimbursed by long-term funding by the USDA source,” he said.
The resolution the council approved Feb. 3 was a legal requirement that the city's bond counsel advised needed to be done, Buffalo said.
Buffalo said that, altogether, the resolution covered an estimated $1,085,000 in expenses.
That includes the purchase price, along with $20,000 for engineering and architectural work required by the USDA, $125,000 for construction costs and $20,000 for contingencies.
Buffalo added that he believes the construction expense should come out far less than the $125,000 that it's estimated to cost. “We wanted to cover our bases.”
The city, he added, is still awaiting some estimates from contractors on those construction costs, which will include building modifications such as putting up interior walls.
Buffalo said city officials have had conversations with the USDA about qualifying for the program, and the city was assured – both by the USDA and a consultant – that it was a good applicant.
He said the city is now in the application process and working to fulfill a number of requirements while waiting for a final letter saying whether or not it will be considered for the loan.
In the process, he said, the USDA usually offers approval based on completion of several steps.
As a result, the city is confident in its chances to receive the loan funds, he said.
The 90-day escrow on the building began in the latter half of November, which means it's expected to close later this month.
City Manager Margaret Silveira told Lake County News that she believes the escrow should close on time.
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Lakeport City Council approves agreement to repay general fund for police headquarters building costs
- Elizabeth Larson