LAKEPORT, Calif. – The Board of Supervisors held an initial and tentative discussion on what the county should do next with the historic Lucerne Hotel, also known as the Castle, in the wake of the departure of the university that has the building under lease.
The county purchased the 1920s-era building for $1.75 million in 2010 and by October of 2012 had completed the majority of the renovations and signed a lease for Southern California-based Marymount California University, or MCU, to use it as its third campus.
However, two weeks ago MCU abruptly abandoned the building, which had been known as its Lakeside Campus, moving out the remaining furniture, computers and Internet equipment after more than four and a half years into its lease.
County Administrative Office Carol Huchingson acknowledged at Tuesday’s board meeting that she placed the item on the agenda at the last minute, and while not seeking formal action from the board she was asking for direction.
Since MCU’s sudden departure and the associated media coverage, “There has been a flurry of interest over what to do with our castle,” Huchingson said.
Huchingson said the county has received contact from two educational organizations – one of which was a faith-based university that has withdrawn – and two religious groups. It also has been asked to use the building to house wildland fire victims.
She said the county has been told by interested parties that they’re preparing plans to submit, but unless the board wants staff to take proposals, they can’t receive them.
Board Chair Jeff Smith said the county is fighting financial battles right now. “We should be open to anything and everything, including the sale of it,” he said of the building.
He said the county had a dream of a four year university but now it needs to start looking at options within 90 days or by the end of the year.
Huchingson wanted to know if county staff should receive any and every proposal or put out a formal request for proposals. Smith said he would want broad proposals that would allow the county to move forward without going upside down in the building.
Supervisor Rob Brown said he had been surprised to see the item on the agenda, and alluded to closed session discussions which the board had held in regard to the building. He did not further elaborate on those discussions.
“This is a really big deal,” said Brown, noting there were a lot of huge intentions for it.
“We need to be thoughtful about what we want to do with it, including the potential of not owning it,” he said, adding, “I don't think we're going to arrive at that today.”
Supervisor Moke Simon wanted to get an appraisal to see what the building is worth as part of the process to seek proposals.
Supervisor Jim Steele, in whose district the building is located, indicated support for selling the building and having someone else handle it. “It’s an expensive building, it’s an old building,” he said, adding that there are a lot of small uses that could keep the building going.
County administrative staffer Michelle Scully, the former executive director of the Lakeside Campus, said the Friends of the Marymount California University Lakeside campus had access to the entire facility as part of the original agreement between the county and the university.
Under that option, the group had the option to sublet the building, and she said the Friends group has been involved with other uses for the building.
Steele said he wants to hear from that group, noting the he felt it was a bad move to just sell it and not take proposals.
Supervisor Tina Scott agreed with Simon that they needed to get an appraisal and set a timeline for finding a use and a deadline for when to sell it.
Simon asked staff about the payment of utilities on the building. Under the revised lease, MCU is required to pay 80 percent of the utilities.
Huchingson said MCU did just pay and are still obligated to do so.
Huchingson said she can get a quote on an appraisal, noting the county is now updating its appraisal on the Holiday Harbor marina property in Nice.
She also suggested that county staff meet with the Friends group, and establish a timeline for a decision making so that the building doesn’t sit empty and deteriorate.
Simon said that whatever they do will cost money. Huchingson called the building a “burden” that has needs.
During public comment, Friends member John Jensen, a Lucerne resident and co-owner and co-founder of Lake County News, urged the board to take time and care with the decision, noting that a single dishonorable out-of-county tenant “does not a failure make.”
He said there are opportunities for new uses of the building, and he was concerned that a kneejerk response will harm other options, such as was the case with the faith-based university that had withdrawn after expressing interest.
County Counsel Anita Grant noted during the discussion that MCU hasn’t given its formal termination yet on the lease, and she suggested giving staff direction to address that.
Huchingson said staff will send MCU a letter asking about its intentions regarding the lease.
Lower Lake resident Victoria Brandon, who has has been a Friends member, noted the group’s successful “Distinguished Speaker Series.”
She said the group was actively looking for ways to encourage use of the building, and said it seemed like the perfect opportunity to further uses.
Brandon suggested it would be much more advantageous to find several uses for the building, which would be up for discussion at a meeting of the Friends set for Wednesday morning at the Castle.
She added that it also would be good to have the county clarify the strange legal situation that now exists around the building.
Leanne Harvey, who had been MCU’s facilities coordinator for the building, said it’s a historical treasure, and that the university also had been a treasure for the community.
She reminded the board that 30 individuals had gotten degrees while studying at the site.
Harvey added that there was more than dollars and cents to consider, but ripples that they would be able to send into the future if the county can keep the building.
Huchingson said she will work on getting a cost for an appraisal and establish a timeline for a decision.
She said much of that timeline will be driven by a scheduled followup at the board’s July 11 meeting, at which time she expects to have a response from MCU about its intended action on the lease.
County staff also will meet with representatives of the Friends group and develop a report on costs for different use options, Huchingson said.
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