LUCERNE — After hearing from more than a dozen members of the community speaking in support of the action, the Lake County Board of Supervisors, sitting as the Redevelopment Agency (RDA) moved Tuesday to purchase property in Lucerne referred to locally as “The Castle.” The board heard no comments opposing the action.
Negotiated purchase price is $1,350,000. Administrative Officer Kelly Cox said the negotiated price is less than half of the property”s appraised value. The purchase price reflects deductions negotiated in relation to rehabilitation needs of the property.
Cox emphasized that the purchase of the property will be by the RDA, not the county. The property is located within the RDA project area and satisfies the RDA requirement that funds be used to eliminate blight and promote economic development.
“We see this property as a key component to being able to accomplish what we want to in the community of Lucerne and on the northshore,” Cox said.
Cox said that preliminary reports and inspections have been completed on the property. He said that issues with the title report have been resolved as has a concern regarding the possibility of an underground tank being located on the property. He said excavation activities were conducted and there was no discovery of an underground tank and no indication of contamination.
Cox said the pest report revealed termite activity particularly in the attic of the building. To tent and treat the building, cost is estimated in excess of $100,000. However, Cox said that damage detected seems to be minor and spot treatment, estimated at $10,000, with monitoring and additional treatment as needed would be a more feasible avenue to pursue.
Cox said there are concerns with the building”s roof. He said about half the roof was replaced in recent years and is in good condition. However, the other half is need of repairs, which he said costs are estimated at $225,000.
Cox said, though it is a lesser priority, the exterior plaster and paint on the castle is also in need of repair. Those rehabilitation costs are estimated at $132,000.
Total repair and rehabilitation costs estimate $367,000, which Cox said is available in the RDA”s budget via funds set aside for property acquisitions and related needs.
Cox said that renovations are needed in the areas of landscaping and parking lot facilities. He said that related costs could be reduced with use of Konocti Conservation Camp labor. The building itself is also in need of energy conservation renovations. Cox said such work would be done by local contractors only. “We would like this project to provide as much economical support to the community as possible, from start to finish,” Cox said.
Cox said that there are currently two families residing on the property, which the RDA could be responsible for relocating. He said one is a caretaker and that he would recommend retaining that person. The other, he said, resides in one of the two modular units on the property. He said staff would recommend consideration of a rental agreement to avoid relocation costs and generate income. He said the agency could consider renting out the other modular unit as well.
Cox said purchase of the property requires a substantial level of commitment from the RDA and presents a significant amount of risk. Visions for the property include such venues as a hotel, restaurant and educational center. He said staff prefers that the castle be operated under private ownership; however, making the property marketable may be as far as five years out.
Those speaking in favor of the property acquisition expressed support for establishing some sort of educational venue that would provide more options for local vocational students. Others voiced support for the preservation of county history, which many agreed the castle holds significant historical value.
“There is nothing like this in the entire north state,” Maria Giovanni, UC Davis educator said. “I think the risk of not purchasing this is too great for the northshore community.”
Barbara Johnson said she sees a potential for multipurpose use of the building for the county and the businesses on the northshore. “If it takes two years, five years, 10 years ? it”s going to be worth it,” she said. Wally Holbrook, newly seated Lake County Superintendent of Schools, said he is really excited about the educational opportunities acquisition of the property could provide. “We are ready and willing to help in any way we can,” he said. “We are not just supporting this we want to say we will stand with you. This will be something that really moves our county forward.”
District 2 Supervisor Jeff Smith said opportunities are above and beyond those discussed. He suggested inclusion of educational programs involving construction, energy efficiency retrofitting and others. “If we geared this whole thing around an education aspect it would be a great thing,” he said. “We could have something that I think would be looked at nationwide.”
District 3 Supervisor Denise Rushing, who represents the northshore communities, also expressed support. “I believe it”s the last best chance for the building. I”m energized by the education opportunities; I love the idea of micro enterprise. I”m seeing that the community can and will step up,” she said. “I think it will be something that will allow us to be proud. I think it will draw visitors to the community.”
Supervisors Anthony Farrington, Jim Comstock and Rob Brown also supported purchase of the property. The action passed on a 5-0 vote.
Contact South County reporter Denise Rockenstein at drockenstein@clearlakeobserver.com or call her directly at 994-6444, ext. 11.
