Sitting jointly as the Lake County Redevelopment Agency Board of Directors, supervisors on Dec. 16 agreed to a redevelopment agency agreement with the center that will provide a $60,000 forgivable loan to use for repairs to the center's electrical system and its kitchen, and a forgivable loan from the county in the amount of $20,750 to pay off a loan the center had taken from Umpqua Bank.
In recent years the center has been hit by especially hard times. A former executive director, Rowland Mosser, is at the center of a criminal case in which he is alleged to have embezzled money from the center.
Since then, the center has faced tax liens from the federal and state governments due to taxes Mosser allegedly didn't pay, and liens from companies that provide it with food and other services.
In order to catch up, the center sold its thrift shop building to the county last year for $150,000, but that was only enough to cover its outstanding bills, and left nothing for needed building repairs. Earlier this year the board also supported paying for a new roof at a cost of about $30,000, which center Executive Director Lee Tyree said was completed over the summer.
While inspecting the building in connection with the roof situation, Deputy Redevelopment Director Eric Seely discovered the dangerous condition of the electrical system, which he and county Chief Administrative Officer Kelly Cox, who also is the redevelopment agency's executive director, brought to the board's attention.
The board previously had agreed to help the center get bids for the work, with original estimates coming in as high as $80,000.
However, thanks to Seely's research and discussions with contractors, they've discovered electrical repairs can be done for considerably less money. “It's not going to be quite as extensive as originally projected,” said Cox.
Cox said the agreements would execute a promissory note to secure the county's investment in the buildings. At this point, the county isn't interested in acquiring ownership, which Cox said would bring with it a lot of longterm financial responsibilities and other liabilities.
The county wanted to make sure that the center's holding nonprofit didn't sell the land or lose title, Cox said.
The second agreement with the county would pay off the Umpqua Bank loan, and essentially wipe out the rest of the center's outstanding indebtedness, said Cox.
The redevelopment agreement for the electrical and kitchen repairs would be funded by redevelopment agency funds, said Cox.
The second agreement would come from the general fund. Specifically, Cox proposed taking the money from $25,000 that has been carried over from previous years, and which the county had set aside for conducting a study on the feasibility of acquiring the town's water system from California Water Service Co. He said the money is from a one-time source of funds an is “really a one-shot deal.”
Seely said he has contacted several electrical engineers to look at the building, and they came up with the idea of doing a “design build,” which would save money by not entirely replacing the system.
Rather, they would upgrade only parts of the system that were deficient, dangerous and didn't meet codes. “We would try to utilize as much of the existing system as we can,” he said.
That would make the building safer and costs much lower, said Seely.
District 3 Supervisor Denise Rushing thanked Cox and Seely for their work. Cox said County Counsel Anita Grant also deserved recognition for her work on the solution, particularly crafting the legal agreements.
Rushing asked about what could trigger the center having to repay the loans. If, for example, the center didn't fix facilities in need of repair and a lawsuit resulted from an injury, could that cause repayment?
Grant said the triggers would include a recorded lien or judgment against the building. She also told Lake County News on Thursday that another trigger would be the building ceasing to be used as a senior center, because the county wants to see it remain in public service.
Rushing suggested the county now has an obligation to attend center board meetings. Officials would just need notice of the meetings, which are public.
District 4 Supervisor Anthony Farrington asked what would happen if the center went out to seek more money. Cox said if the facility has to be sold, the county would be paid off. Rushing added that the agreement states they can't seek a second loan without triggering repayment.
“This is serious business,” said Cox. “The county is putting a lot of money into this center.”
Turning to center volunteers and staff who were sitting in the audience, Cox said, “I know you can do it.”
Cox told the board, “This really gives them a chance to start over,” which he said was needed in order for them to be successful.
The county doesn't expect to be involved in any other “big ticket” items, said Cox. The center does need some paint and new floor coverings, and eventually it would be good to replace its windows with more energy-efficient ones. He said Pacific Gas and Electric has conducted an energy audit of the building and will have some suggestions on how to lower its heating and cooling bills.
Seely added that the center also passed a mold test conducted on it.
Supervisor Rob Brown asked if there is an opportunity for a bidding process to take effect in order to determine the contractor. “We have a ton of contractors out here who aren't working.”
He also asked if contractors who had donated time and services on other county projects, like the Victim-Witness interview center, had been offered the first chance at the project.
Louise Talley, a former county supervisor who now serves on the senior center board, thanked the county and the board for their help.
“It's just phenomenal,” she said. “I know that they're going to work very hard at the center to take care of everything that needs to be done.”
Tyree also thanked the board for what they've done for the center.
Lucerne resident Donna Christopher thanked the county and asked if they could send the idea of securing public interest and tax dollars in projects to Washington, D.C.
Cox said the county has some other senior center projects in Clearlake Oaks and Middletown coming up, but in the future they may have some Community Development Block Grant funding that could be used for additional repairs and upgrades at the Lucerne center.
Rushing moved both the agreements, which the board approved unanimously. Applause erupted from the audience after the two votes.
“This is a fun way to end our day,” said Board Chair Ed Robey.
The action was indeed the last taken by the board during its final meeting of the year.
“Merry Christmas,” Cox told the center representatives.
Tyree said Thursday that the center is actually getting into very good shape these days.
“Every day, every week, every month, it just gets better and better,” she said.
All of the walls have had the plaster repaired. “We had plaster that was just literally falling from the ceiling onto the floors,” she said.
In addition to the plaster repairs, the center also has some new paint and linoleum in certain areas. “It's great,” said Tyree.
E-mail Elizabeth Larson at
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