CLEARLAKE — A sizable property on the shores of Clear Lake could soon be built into a resort, according to the City of Clearlake.
During a meeting held before a virtual audience due to precautions against the coronavirus pandemic, the Clearlake City Council on Thursday authorized the formation of an agreement that could lead to the purchase of a prominent city-owned downtown lakefront property on which a developer has said it wants to build a resort.
The “Austin Resort Property,” as it is called by the city, consists of about eight acres of undeveloped land located on Olympic Drive across Lakeshore Drive from Austin Park and City Hall in the heart of Clearlake. Developer Bailey Building and Loans has proposed to buy the property—currently owned in part by the city, and in part by the successor to the city’s redevelopment agency—for $915,350, and construct a “lakefront resort” that would include a hotel, restaurants and a marina.
A memo to the council from City Manager Alan Flora notes that the property “has been intended for recreational/resort development for many years, but no projects have gained traction.”
Clearlake Mayor Russ Cremer, who said he and Vice Mayor Dirk Slooten have met with the would-be landowners about their intended purchase, expressed excitement about the prospect of a resort being built downtown.
“This site, whereas it might be a detriment now, sitting there the way it is, I think it’s the premier undeveloped site in all of Clearlake, and it will most definitely transform the City of Clearlake,” Cremer said. Noting the ongoing remodeling project at Austin Park across the street—which will add an event stage and other amenities there—Cremer said he sees “a very bright future for the City of Clearlake” should the resort come to fruition.
The city council unanimously approved Flora’s signing of a letter of intent with the developer to enter into what has been drafted as a 90-day purchase agreement for the sale of the property.
Though she supported the proposed development, council member Joyce Overton said she hopes to avoid leaving the city on the hook for building a traffic roundabout next to the property. According to Flora, a roundabout had been raised as an idea during meetings with the developer.
Overton asked for verbiage in the purchase agreement that would detail “how much money (the developer is) going to have to put up compared to use” for the costs of such a roundabout.
Overton also expressed concern that the developer might not be successful in its plans for a resort, and leave the property in a state of disrepair. “If we sell this property to them, and they don’t develop it, then what happens?” she asked.
Calling the Austin Resort property “ripe for development,” Flora argued that its has “been difficult over the years for the city to find folks who are willing to invest real dollars in quality projects. I believe that this is one of them, and we need to do what we can to make sure that this project is successful.”
Council member Phil Harris said that the sees the purchase as creating the potential for “continuous economic stimulus for our community.” He noted that a clause should be included in the purchase agreement to be developed between the city and Bailey Building and Loans that would require the developer to begin construction within a given amount of time.
“Part of the purchase agreement must be some kind of a timeline for construction to begin,” Harris said.
During the same meeting, the city council approved the awarding of a contract to Lamon Construction for a repaving project on Pearl, Emory and Mullen Avenues in Clearlake in the amount of under $1.2 million, the lowest of seven bids received by the city.
