LAKEPORT ? A plan aimed at helping Lakeport”s small businesses got conceptual approval from the Lakeport Redevelopment Agency”s board of directors Tuesday.
City of Lakeport Redevelopment Director Richard Knoll proposed that city sell some of its property to the agency and use part of the proceeds to expand its existing business loan program to include the Business Stabilization Loan Program. Knoll said unlike the existing loan program, expanded program would allow small businesses two years old or more to access working capitol with fewer strings attached.
“For every $35,000 that is loaned, one job must be created. And those jobs have to be from the targeted income group population ? the low and moderate income group,” Knoll said, explaining how the existing program works.
“That”s hard to do right now,” Councilman Jim Irwin said.
The board of directors, also the Lakeport City Council, voted 3-2 to approve the concept of the stabilization program, with council members Irwin and Susanne Lyons opposed.
“There are business entities here that are in real trouble and may go bankrupt or close their doors,” Knoll wrote in a memo.
He said Lakeport would likely not get any money from federal and state grants being provided to cities to respond to mortgage foreclosures, or benefit from the federal bailout.
Knoll wrote in his memo that the city currently owns two properties that are not generating money for the city, and at least three more that could be developed and put to better use. The non-performing properties he listed are Dutch Harbor and approximately 2.14 acres of property on Bevins Street.
Knoll said the Bevins Street property would be a priority to consider for sale, and estimated its value at $400,000. He said he is working to nail down a price for the property, which he will bring back to the council at a later time.
Guidelines for the loan program also need to be brought back to the council for formal approval, according to Knoll. He said the council would need to consider each sale individually.
In addition, Knoll said the city should consider selling Lakeport Police Department and the Lakeport Fire Protection District properties. He said Wednesday the two properties are not a priority to sell, but they are on the table for consideration because there has been informal discussion about the two agencies collocating.
Knoll”s also lists the Natural High School property as a consideration for eventual sale to the redevelopment agency, but clarified that the city does not currently own the property. He said Wednesday that the redevelopment agency may eventually pursue acquisition of the property.
Contact Tiffany Revelle at trevelle@record-bee.com, or call her directly at 263-5636 ext. 37.
