- Elizabeth Larson
- Posted On
City of Clearlake closes land sale for new apartments; work continues on sports complex planning
City Manager Alan Flora said the city’s sale of a five-acre parcel at 14795 Burns Valley Road to Danco Communities closed on Thursday, with the documents recorded on Monday.
He said the final sales price for the land was $1.5 million.
The project’s overall cost has been estimated at around $50 million.
Last May, the Clearlake City Council voted unanimously to approve an exclusive negotiating agreement with the Arcata-based Danco for an 84-unit apartment complex with mixed-income family units, as Lake County News has reported.
That led to the council voting unanimously at a special Dec. 16 meeting to approve the property sale to Danco.
Flora told Lake County News that the project as proposed remains “pretty much the same” as it was when proposed to the city last year, and will include about 80 units.
During Thursday’s Clearlake City Council meeting, Flora told council members that completing the property sale and transfer has “been quite a difficult place to get to,” primarily because of the involvement of the California Department of Housing and Community Development's involvement.
“Danco is very anxious to get started. We have their permits and everything ready to go. They expect to start construction on June 1,” Flora said, adding that they would be on site in just over a week.
“We’ll be excited to see that project move forward,” he said.
Mayor Dirk Slooten said he would like to see a groundbreaking ceremony held for the project. Flora said they’ve not talked about it but he would bring it up with Danco.
He estimated that Danco is at least a month if not six weeks behind when they wanted to start based on the timeline for tax credit funding, and those delays are raising concerns for the company about being able to get the project done on time.
City seeks grants for sports complex
The land the city sold to Danco for the apartment complex was part of a larger 31-acre parcel the city purchased in December 2021.
The city is currently working through the planning process for a new city sports and recreation complex and corporation yard that will be located within the remaining 26 acres of that parcel.
On Thursday Flora updated the council on the work staff has done to pursue grant funding for the sports complex.
He said the city applied for a little over $5 million from the U.S. Economic Development Administration, which is part of the U.S. Department of Commerce. Its website said it invests “in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.”
Flora said the project didn’t receive an award from the Economic Development Administration, which had only $50 million available for the entire state. While officials said they liked the project, it didn’t make the final cut.
However, the city is pursuing other grant and government funding avenues.
At its April 7 meeting, the council approved an emergency item to submit by the deadline a request to Congressman Mike Thompson to include the sports complex among the projects he sends to the House Appropriations Committee for consideration for Community Project Funding.
Each member of Congress is allowed to submit up to 15 items for consideration. Two Lake County projects Thompson had submitted in the last round — $450,000 for the Lake County Kelseyville Sidewalk Project and $320,000 for the Lake County Full Circle Effluent Pipeline preliminary design report update — were funded when H.R. 2471, the Funding For The People bill, passed in March.
Regarding the latest list of projects, “He did select our project as one of them to move forward,” Flora said of Thompson.
Thompson’s office has requested additional information on the project and Flora said he hopes the city will hear something within the next few months.
Flora said another potential avenue of funding is through California State Parks, to which the city has applied for $3 million.
“They are analyzing the projects now,” he said. “We did get notification that they want to come out and look at the site and ask some questions.”
However, Flora cautioned that the visit doesn’t guarantee a grant award, explaining that they don’t always visit the projects they choose and they don’t always give notifications of a visit.
He said that was the case when state officials came to visit Highlands Park, which was done without telling the city about it.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.