CLEARLAKE — The Clearlake City Council, sitting as the Redevelopment Agency, recently granted an extension for closing escrow on 29 acres near the former airport property. The action extends the Disposition and Development Agreement (DDA) with Clearlake Redev 29, LLC by one year, from July 2008 to July 2009.
The request for the extension was made in light of the current condition within the housing market. City staff recommended granting the extension citing the condition of the housing market as a legitimate reason. “Second, if we don”t approve the extension it would expire in July 2008 and then it would take us two to four years to get to the point where we are today,” City Administrator Dale Neiman added.
Clearlake Redev 29, LLC, has been in the process of developing a subdivision on 29 acres located in the area of Old Highway 53 and Highway 53 since May 2005. The current DDA requires that the developer deposits an additional $40,000 with the agency prior to closing of escrow. Councilmember Judy Thein voiced a concern for losing the interest on that $40,000 for the year the agreement is extended.
Clearlake Redev 29 Representative Wally Geer was quick to step up and countered Finance Director Mike Vivrette”s suggested five percent or better interest rate with an offer of eight percent.
The extension, which was included on the council/RDA”s Feb. 13 regular meeting agenda, passed on a 5-0 vote with an amendment addressing the agreement for the interest.
Contact Denise Rockenstein at drockenstein@clearlakeobserver.com.
