- Elizabeth Larson
- Posted On
Dodd, McGuire urge state to stop Westamerica Bank's Upper Lake branch closure
UPPER LAKE, Calif. – The two men who represent Lake County in the State Legislature have weighed in on the proposal to close the only bank branch serving the Northshore, urging the state to not let the closure take place.
Assemblyman Bill Dodd and Sen. Mike McGuire have sent letters to the California Department of Business Oversight to register their concerns about Westamerica Bank's plans to shutter its Upper Lake branch – located at 9470 Main St. – this spring.
Westamerica filed a complete notice about the branch closure with the Department of Business Oversight in January – which it is required to do because it is a state-chartered bank – and notified customers the same month, as Lake County News has reported.
While the bank told regulators that impacts would be limited, customers could easily move their transactions to the Lakeport branch and that it would only affect Upper Lake, a groundswell of support for keeping the bank soon showed that community members from across the Northshore would be impacted.
Department of Business Oversight Commissioner Jan Lynn Owen indicated to the bank in a Feb. 13 letter that she would not raise an objection to the closure, initially scheduled to take place on April 24.
However, the circulation of petitions – including an online petition at http://petitions.moveon.org/sign/upper-lake-bank-customers – along with letters from county and community leaders, and a March 4 town hall meeting brought the issues of the branch's closure into sharper focus.
As a result, Owen followed up with a letter to Westamerica on March 6 saying her department was now reopening its consideration of the closure.
Westamerica has refused to answer questions from the media or the community about closing the branch, which in its letter to the state was attributed to “low transactional volume which does not support having a branch in the current location.”
The letters to Owen from McGuire and Dodd – dated March 12 and 16, respectively – reiterate the issues raised by community members
In his letter, McGuire wrote that “the planned closure of the single bank in town could have a devastating impact on local business and on our larger Lake County community. ”
Noting that Upper Lake has had a bank on its Main Street for nearly a century, McGuire pointed to the larger impact, explaining that Westamerica’s Upper Lake branch “is the only bank along Lake County’s Highway 20 corridor, with more than 15,000 people residing in the area. ”
With the Department of Business Oversight reopening its review of the matter, McGuire wrote, “I believe it is imperative that the impact the bank’s closure will have on the entire Northshore region, its businesses and its residents, be taken into consideration. ”
McGuire further asked Owen that if her agency decided to grant Westamerica permission to close the
Upper Lake branch, that an extended time frame be required.
“If there is potential interest from other financial institutions to open a branch in Upper Lake, they need to be given an appropriate amount of time to do so, without the community having to suffer an extended period with no financial institution nearby,” McGuire said.
In his letter, Dodd raised issues of the branch closure's potential effect on businesses, seniors and working families in Upper Lake and across the Northshore.
Referring to the Department of Business Oversight's reopening of its review, Dodd said he appreciated the department “fulfilling its legal obligation” to consider new information brought forward by the community.
“However, I am disappointed that the Department was not more proactive in its initial outreach and evaluation of the significant hardship posed by the closure of this bank branch,” Dodd added.
As the Department of Business Oversight conducts its review of the new information, Dodd said the impact the bank's closure will have on the thousands of Northshore residents “necessitates significant consideration.”
Like McGuire, Dodd also asked the agency to consider an extended timeframe if it approves the closure in order to allow for another financial institution to locate in the area.
In her March 6 letter to Westamerica, Owen asked the bank to grant her agency a 30-day time extension for the consideration.
Tom Dresslar, a special assistant to Owen, told Lake County News this week that Westamerica agreed to the time extension.
Dresslar, who attended the March 4 town hall in Upper Lake that focused on the branch closure, confirmed that the review is under way.
Owen's letter anticipated that the review would be completed and a decision made on or before April 15.
State financial code requires Owen to “consider whether the closing or discontinuance of the branch office will have a seriously adverse effect on the public convenience or advantage.”
Businesswoman and Upper Lake Community Council President Debbie Hablutzel, who has worked to rally community support for keeping the bank, was glad to hear of the efforts of Dodd and McGuire on behalf of keeping the bank.
Despite facing big odds, “I'm still hopeful,” Hablutzel said.
She said employees at the Upper Lake branch have told customers that the branch closure has been delayed to May 22.
Separately, Dresslar said his agency has received no word from the bank about any delay in the planned Apr. 24 closure.
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