KELSEYVILLE, Calif. – The plans to purchase and renovate the county's premier resort property are continuing to move forward.
In September, the San Francisco-based Resort Equities submitted to Lake County Community Development a new use permit application and plans to redevelop and reopen the 68-acre Konocti Harbor Resort and Spa, which closed in November 2009.
The details of the firm's plans for the resort can be found at bit.ly/14wkMqX .
In a September interview, Grant Sedgwick, president of Resort Equities, told Lake County News that the firm had signed a purchase agreement on Aug. 1 to purchase the resort, with closing estimated to occur in mid-December. That purchase agreement's confidentiality clause prevents disclosure of the sales prices.
In a new interview, Sedgwick told Lake County News that the escrow process is still under way and on track, and Resort Equities is getting expedited assistance from county officials.
“They are being totally, totally supportive and cooperative with our plans for rebuilding the resort,” Sedgwick said.
Community Development has assigned one of its senior staffers, Principal Planner Kevin Ingram, to work with Resort Equities on the application process, which the county had pledged to help expedite.
Ingram said that he's working to make sure the environmental documents and entitlements are in order so he can get the project to the Lake County Planning Commission for a special early December meeting.
On Sept. 16 a number of local agencies – including county building and planning staff, Lake County Water Resources, Environmental Health and the Kelseyville Fire Protection District – met with Resort Equities' architect for a walk-through at Konocti Harbor, Ingram said.
“It was a really good meeting,” said Ingram, noting it saved the agencies a lot of time in communicating back and forth about the proposal.
Ingram said of the resort, “It was surprising to me how badly deteriorated it was,” but the good news was that the architect wasn't perturbed by it, as it wasn't his first time out there.
“I took that as a positive sign that they know the challenges that they're up against there,” Ingram said.
Sedgwick acknowledged, “The property is pretty run down.”
He had said in a previous interview that costs to modernize and improve the resort could run between $50 million and $70 million.
The plans ahead include a lot of substantial renovation, including demolishing some of the older buildings. New docks will be necessary, as Sedgwick said all of the docks blew away in a storm a few years ago.
None of the changes they're proposing, he said, seem to be very controversial.
Since that September meeting, Ingram said Resort Equities has continued to submit information as Community Development requests it, calls frequently to ask questions and also turned in updated conceptual plans for proposed condominiums along an undeveloped portion of shoreline behind the amphitheater. “They're not wanting to make any major changes to that shoreline.”
The project proponents also have worked with the state water quality control board and other state water officials as they work to complete a report to submit showing they have water and sewer capacity at the resort, he said.
Ingram said that resort's water system will need to be upgraded for full buildout of the project, although there is capacity for some development right now.
Sedgwick said he recently met with the resort's current owners – the convalescent trust fund for Local 38 of the United Association of Plumbers, Pipefitters and Journeymen – to give them a progress update on how the effort to purchase the resort is going.
“I still think it's on track in terms of schedule,” he said.
He said he doesn't think it's the current owners' current expectations that Resort Equities would buy the property before having the county's approval for the project.
“We're still working hard on putting all the other pieces together,” Sedgwick said, noting that he's optimistic that it will be approved.
“We're still planning on getting them in front of the planning commission by the end of the year,” Ingram said.
In order to get the approvals and fulfill the California Environmental Quality Act requirements completed by the start of December means a lot of late nights for Ingram. The county is streamlining what it can, although CEQA and some other legal requirements don't have much wiggle room.
“It's a really tight timeframe but we're keeping to our end of the bargain and they’re dedicated to their end,” Ingram said.
Ingram said the plans for Konocti Harbor's renovation is the biggest commercial project the county has had in some time, certainly the biggest in his eight years with the county.
The last scheduled Lake County Planning commission meeting is Dec. 12, but Ingram said staff was considering doing a special meeting the week before in order to assist Sedgwick's firm meet its due diligence deadlines.
Community Development Director Rick Coel confirmed this week that a special Lake County Planning Commission meeting has been set for Thursday, Dec. 5. The item will be heard at 9:05 a.m.
At that meeting, the commission will hold a public hearing on the resort's proposed renovation and expansion, including the offering of a portion of resort units as fractional/timeshare type ownerships, and discuss a mitigated negative declaration based on an initial study.
The use permit will incorporate all existing approved resort amenities including the outdoor concert venue, and a variance from the provisions of the Shoreline Ordinance will be considered in order to permit the replacement of lakefront amenities and the construction of a new party deck.
Coel said the initial study is expected to be available next Monday, with the staff report anticipated to be ready a week after that.
“We are excited,” Coel said.
Once the project gets planning commission approval, Resort Equities would next be looking at building permits, state requirements for water and sewer permits, and could start construction and remodeling, Ingram said.
Theoretically, if the project is approved in December – and if it isn't appealed – Resort Equities could turn in construction plans and permits to start remodeling as soon as seven days after the use permit is approved. However, Ingram said he doesn't believe it's the firm's intention to pull permits that fast.
As for what's ahead on Resort Equities' end, “We won't really know much before December,” Sedgwick said.
By that point he hopes to have the financing and partnerships lined up.
While they have a purchasing agreement, the hard part for Resort Equities isn't buying Konocti Harbor, but how to put it to good use and make the economics work, Sedgwick said.
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.