LAKEPORT ? Lakeport”s city council voted to approve the sale of the Vista Point shopping center Tuesday to a Sonoma County developer with strong ties to the area.
The dilapidated 9-acre parcel on Lakeport Blvd. near Vista Point?appraised by the city as worth $900,000?sold along with the property”s lease to Sonoma County developer Matt Riveras for $1,001,000. He is the son-in-law of councilman Buzz Bruns, who did not participate in any decisions due to that connection.
Current lease holders Meridian Investments introduced a bid at the meeting. Although it was rejected, they say they will try again if Riveras does not accept the bid terms.
“There is untapped tax revenue that could be coming in and isn”t. We want to work closely with the city and community to find out what is most needed there,” said Jeff Walters of Meridian Investments.
Easton McAllister of Presidio Development Partners LLC in San Francisco said they were hired to work with Meridian Investments to redevelop the 113,288 square foot shopping center during the remainder of Meridian”s lease. They said the property could generate $300,000 to $500,000 in tax revenues for the city after development.
McAllister told the city council the project would create more jobs as a catalyst of revitalization and provide a gateway to the city.
“We regret that we came to the table a little later,” said McAllister. “We were pulled in by Meridian to help out when Jeff Walters” father passed away this summer.”
Meridian holds a 21-year lease on the property, but Riveras as the new property owner would be entitled to payments from tenants if escrow closes.
For 2006-07 the annual rent payments totaled $42,337, rising five percent annually. Current tenants will not be affected by the changes taking place, according to Walters.McAllister said they would pursue developing the property, despite not owning the land.
“Our intent was to be the purchaser, because not owning the land limits our ability. The development will have to go through approval and design, which all takes time. But we”re not just going to let it sit there,” said McAllister.
Walters added, “We do want to clean up in the meantime.”
Mayor Roy Parmentier asked why they were taking a sudden interest in the property.
“We”ve been staring at that monstrosity for five or six years,” Parmentier said.
McAllister and Walters said they want to focus on the future potential and partnerships in redeveloping the property, and noted the property had not been available for sale previously. Community Development Director Richard Knoll said the city had to draw up a parcel last spring in order to sell it. “The Vista Point property was part of a much larger adjacent property, so we created a parcel and then put it up for sale,” Knoll said.
City manager Jerry Gilham said the council had voted to enter negotiations with developers on Aug. 3. “We mailed out a list to potential developers last spring saying, ?here”s your chance,”” said Gilham.
The only additional bid offer other than Riveras” the city council received in time for discussions to start in August came from Willopoint Resort owner Barry Johnson.
“When Presidio saw we were in negotiations with Riveras, they attempted to insert a proposal,” said Gilham. The decision to accept Riveras” bid came after an approximately half-hour closed session at 8 p.m. Voting were council members Mayor Roy Parmentier, Ron Betrsh, and Bob Rumfelt, advised by city manager Jerry Gilham.
Councilman Buzz Bruns sat out of the session because Riveras is his son-in-law. Councilman Jim Irwin also relieved himself from the session because he has worked with Riveras on a shared fence between homes he and Riveras were building in Lakeport”s Lands End neighborhood. Riveras has developed property in Lakeport and owns a home in Lakeport.
Riveras has seven days to accept terms set by the city and to deposit $99,000 into an escrow account. Escrow must close 14 days after the seven days or the deal will be null and void.
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