LAKE COUNTY — The Lake County Board of Supervisors withdrew its previous opposition to Indian gaming at Konocti Harbor Resort & Spa (KHRS) Tuesday when it adopted a resolution supporting the resort”s expansion as an escrow management firm looks for a buyer.
The U.A. Local 38 Convalescent Trust Fund, a union representing plumbers, pipefitters and journeymen, owns the resort. The union was under investigation by the U.S. Department of Labor for allegedly using approximately $36 million in retiree benefits to buoy the suffering resort. The federal lawsuit was settled early in 2007.
“The result of this settlement is that the U.A. Local 38 Convalescent Trust Fund is left with no alternative but to aggressively pursue a sale of the Konocti Harbor Resort & Spa, or close the resort”s operations in the future,” KHRS President and General Manager Greg Bennett wrote in a letter to the board.
The trust fund, which has owned the resort for nearly 50 years, hired WhiteStar Advisors, a Florida asset management firm, to find a buyer for the resort as part of the settlement. Bennett told the board Tuesday that a potential buyer “must be able to consider development of any and all revenue sources.”
The resolution the board adopted listed options for possible expansion, included gaming, timeshares, residential units, retail shops, expanded convention centers, an expanded concert venue, restaurants, bars, spa services, marina services, and other unspecified attractions.
“I”m excited about the potential. We have to discuss all of the options and entertain all of the possibilities ? that”s the responsibility we have to the public,” Supervisor Anthony Farrington said.
Responding to community outcry, the board adopted a resolution in the fall of 2007 opposing the development of a casino at the resort when former prospective buyer Darius Anderson of Kenwood Investments identified that as a possibility for the property.
Lakeport business owner Nancy Ruzicka suggested the board form a task force to help plan the resort”s expansion, and Lakeport Regional Chamber of Commerce CEO Melissa Fulton expressed support for the idea.
“This resort has reached a point where it needs to be redeveloped,” Supervisor Denise Rushing said.
During the public input portion of the meeting, the board heard concerns about limited access to the resort via Soda Bay Road. Board Chairman Ed Robey said traffic concerns will be addressed when specific plans are discussed in the future.
Bennett would not comment further on the sale of the property, saying only that no specific buyer has been identified.
Contact Tiffany Revelle at trevelle@record-bee.com.
