CITY OF LAKEPORT

City Council
Lakeport Redevelopment Agency
City of Lakeport Municipal Sewer District

STAFF REPORT
RE: CALED Professional Advisory Service Report MEETING DATE: 05/17/2011

SUBMITTED BY: Richard Knoll, CDD/Redevelopment Agency Director

PURPOSE OF REPORT: Information only Discussion Action Item

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

The City Council is being asked to consider and accept the California Association for Local Economic
Development (CALED) Professional Advisory Service (PAS) Report.

BACKGROUND:
*See "Overview" section on the attached report.

DISCUSSION:
The CALED PAS Report contains background, observations, and 14 specific recommendations on Pages 3
through 5.
The report points out several positive actions that have been accomplished over the years in Lakeport,
including the City's Business Loan Program, retention of Mendocino College and the new Courthouse
project.
The report also discusses an apparent disconnect between the community and businesses and the City and
businesses. It should be noted that some of the recommendations that were made are already being worked
on, including an online version of the City's vacant commercial land inventory, the City's improvement of its
economic base, such as the streetscape project and City staff (City Manager and the Community
Development Director) going out to meet with businesses.

OPTIONS:
Accept the CALED PAS Report as submitted or modify and amend with a request to revise and final.

FISCAL IMPACT:
None $ Account Number: Comments:

SUGGESTED MOTIONS:
Motion to accept the CALED PAS Report on the City of Lakeport (December 13-14, 2010).

Attachments: CALED PAS Report

Meeting Date: 05/17/2011 Page 1 Agenda Item #VIII.A.

 City of Lakeport
Professional Advisory Service
Delivered by
The California Association for Local Economic Development (CALED)
550 Bercut Drive, Suite G

Sacramento, CA 95814
Sponsored by the City of Lakeport

Overview:

On December 13th and 14th 2010 the City of Lakeport hosted a California Association for Local
Economic Development (CALED) Professional Advisory Service (PAS) to provide the community
with advice and options for further developing local economic vitality. The PAS team members
consisted of: Steve Art, Economic & Redevelopment Manager for the City of Lincoln; Greg
O'Sullivan, Founding Principal of Economic Development "ON CALL"; Larry Cope, Executive
Director of the Tuolumne County Economic Development Authority; and Bill Davis, Consultant
for CALED.

City staff briefed the CALED team and the CALED team was provided a tour of key economic
development assets for the community. The CALED team then interviewed over 30 key
stakeholders from the community including the Mayor, City Council Members, the Lakeport
Economic Development Advisory Committee (LEDAC), City staff, County Staff, local business owners,
local property owners, education providers, workforce development, and other key
stakeholders.

After the informational interviews, the PAS team conferred to compare notes, identify
prevalent themes, observations, and findings and to develop recommendations. The main focus
of the deliberation was: ln whot ways and how should the community organize ond move
forword to develop sustainoble and effective economic development efforts?

The PAS team reported out observations, findings and recommendations, and some
fundamental economic development principles in a forum for the participants in this process.
Following is a written summery of the findings, observations and recommendations.

California Association for Local Economic Development Page 7

City of Lakeport Professional Advisory Service December 73 and 74,2070

Observations
The City staff has done a tremendous job at providing economic development support services
and resources to businesses. They have taken the appropriate attitude and response to
economic development opportunities. These successes include but are not limited to:

a) Retaining the community college campus. lt was not clear that the college would build
its campus in Lakeport. Superior customer service and support to the college secured
the campus for the community. This is a solid example of "business retention" success.
This campus will provide ongoing education and business services that can greatly assist
local businesses. This also represents capital investments and payroll expenditures
injected into the communitY.

b) Retaining the County Court. lt was not clear that the new County Courthouse would be
located in Lakeport. Superior customer service and support provided during the location
decision-making process help secure the Courts for the community. This is a solid
example of "business retention" success. This also represents capital investments and
payroll expenditures injected into the community.

c) The City has one of the most active CDBG lending programs the PAS team members
have come across in all of their experience. lt is certainly among the top lending
programs amongst all the Cities in California. These CDBG programs provide at-risk
capitalto fill a gap between conventional commercial lenders and the needs of
entrepreneurs whose success provides public benefit to the community.

d) Those individuals we spoke with who had recent experiences working with the City's
permitting and inspection services reported good experiences. City staff is friendly and
extremely helPful.

We observed, however, that there is disconnect between the community and the businesses
and the City and the businesses. For example, some who haven't worked with the City lately
report that customer service is lacking. We perceive that part of this is because the City has
neither celebrated nor communicated their successes adequately. We also feel that this is due
to the absence of some economic development services which will be discussed below in our
Recommendations.

There is a wide spectrum of understandings about economic development principles,

expectations, roles, and responsibilities among the LEDAC members and other community
leaders.

The proximity to the Bay Area, the community itself and the surrounding natural resources are
tremendous economic development assets for the community.

Colifornia Association for Local Economic Development Page 2

City ofLakeport Professional Advisory Service December 73 and 74,2070

The fact that the downtown is losing the Court is concerning to the PAS team. This is a

significant economic driver and note that extra efforts could be required to assist in replacing
the existing or potential business to that area.

Businesses that are "footloose" have many options. The history of Lakeport's call center
business relocations exemplifies this. The odds of capturing and retaining a relocating business
are slim. Unless, that is, it is directly related in some way to the unique assets of Lakeport. An
example of this principle would be a boat or sports equipment manufacture.

Recom mendations:

The leadership of the community giving direction on economic development should be

provided with the most current information on the state of the art strategies and
practices of economic development. A broad based shared vision for the expanded
economic prosperity of Lakeport should be established. Economic development
programs and asset improvement should be designed to fillthis vision. These are
necessary components of Lakeport's economic development strategy.

With a concerted economic development program effort, it is criticalto have a short

term/ quick-hit project that can rally community business leaders. One example of a
highly visible quick-hit project could be the development of a vacant commercial
property inventory to share with prospective businesses. This list should be made
available electronically and in the form of quick prospectus on some available
properties. Make connections with local real estate professionals to assist in this effort.
This is a visible initial step in preparing to respond quickly to any outside inquiries as
they may develop. You are ready to respond to information requests. This of course is
one example. The key is to provide a visible quick-hit that can rally the community
business leaders.

While it is important to be ready to respond to any location requests the PAS team
believes that initial business attraction efforts should be focused on attracting visitors
off highway 29 and from highway 2A. The City should work with Caltrans on necessary
signage and improvements to facilitate this. Could and should historic highway 29.be a
business route?

o Any typical business attraction efforts aimed at luring businesses to the community
should focus on businesses that are directly related to the unique assets Lakeport has to
offer. An example of this principle would be a boat or sports equipment manufacture.

r The resources around Lakeport are underutilized seasonally. lt is critical to promote

diversification in the tourism and visitor industry and its seasonality. Some examples to

California Association for Local Economic Development Page 3

City of Lakeport Professional Advisory Service December 73 and 74,2A70

emphasize might include kayaking, bird watching, biking, walking, and any number of potential
festival themes. Lakeport is at the edges of the Bay Area and much of the remainder of the
United States is frozen during winter months. Lakeport is a temperate climate with year-round
opportunities for the bay area and potentially the nation.

We have described disconnect between the City and the Businesses. The City economic
development requires a public relations/ communications plan which informs the community of
its accomplishments. These accomplishments span the spectrum between examples of the high
quality of service provided at the City offices to the major accomplishments in the continuous
building of Lakeport economic development assets. Communicate the vision and progress for
economic prosperity of the community. Put economic development information on the radio, in
newspaper, and in the visitor rooms.

The key to economic prosperity in Lakeport will be the success of its small businesses. The City
must do whatever possible to provide these businesses with all the support possible. The
Community Colleges have interest in supporting/ incubating small businesses. On one hand the
City can be a facilitator helping connect the business with all the resources like those the
community college can offer. On the other hand the City cin provide additional direct resources.
As mentioned the City has a tremendous CDBG lending program. After-loan care can be funded
with the interest created through the loans.

Interconnections must also be built through creating direct interactions between the City and its
businesses. lt is important for designated City staff to go out and meet with businesses to
identify their issues and work on proactively meeting their needs. All issues cannot be resolved
and false promises should not be presented but where possible flexibility and proactive options
should be developed. Additionally the City could create forums in which to interact with
businesses. For example a forum to have "breakfast with City Council" could be held
periodically.

Economic development is a "team sport". All City staff and advisory members should have their
ears tuned to business needs and potential business issues. For example, in the case where
there is regulatory action required on a business it would provide an excellent opportunity for
economic development to offer assistance to the business proactively while the regulatory side
responds as necessary. Communication (being alerted to the issue) here is the key. The outcome
is good will and business solutions.

The City should continue to improve its economic development assets. This includes
projects such as downtown streetscape improvement, potentially facilitating location of
national brand lodging on highway view properties, and improving lakefront properties.

o The City has a tremendous economic development asset in its lakefront property.
Because of the high-profile of these assets, the City needs to facilitate community-wide
input and deliberation on the nature of any improvement of this property. From the

California Association for Local Economic Development Page 4

City of Lakeport Professional Advisory Service December L3 and 74,2070

perspective of the economic health of the community, any improvement should connect
with the business interests of the downtown. lt should maintain the viewshed and lake
access for downtown visitors and be oriented to draw to downtown visitors who will
shop and/or eat in downtown establishments. Explore other communities who have
capitalized on similar assets and learn from them (Riverwalk in San Antonio was an
example mentioned by PAS team members. There are multiple examples at Lake Tahoe
including Tahoe City. There are multiple examples along the sea coast and bay area; be
inspired but realistic to the local context)

We have seen (in Auburn California for example according to the former Economic Development
Director of Placer County) the location of the first national brand lodging shift the perception of
a community from that of a community to visit to that of a community in which to spend the
night. A similar perception shift could potentially benefit Lakeport lodging in general. The role
of economic development in this case could be to catalyze the community to an improved status
by courting the location of the first national brand lodging. Due to the recession, the industry is
in poor shape at this point in time. This may be a long-term project. Now is the time to prepare
however. Research factors of location decisions by this sector, understand their location and
site needs, build relationships in the industry, find out (ask theml) what it willtake to attract
them to Lakeport, and with due diligence select the locations and get the property shovel ready
to their needs.

From the perception of the PAS team, downtown Lakeport is clean, interesting and inviting. We
were informed of continued streetscape improvements. We commend the City for their work
downtown and encourage their further efforts in this arena. The construction of this sort of
improvement, however, can generate interruption to business activity. We strongly suggest that
you work with local businesses to inform them and facilitate their continued business any way
possible during this construction period.

Finally, the economic development staff position should be a direct report to City Manager.

California Association for Local Economic Development Page 5

City of Lakeport Professional Advisory Service December 73 and 74, 2070

Appendices

l. Overview of CALED and its services

ll. Professional Advisory Service Team

lll. ProfessionalAdvisory Service (PAS) Event Schedule

lV. ProfessionalAdvisoryParticipantList

V. Presentation for Economic Development Leadership Forum: Charting the Course for
Economic Prosperity

Califurnia Association for Local Economic Development Page 6

 City of Lakeport
Professional Advisory Service
December I 3-1 4, 2O1O

The California Association for Local Economic Development

The California Associatictn /itr Local Econottic Develotrtntent (CALEDI is the pretnier statewicle professional econontic
detelopment organization dedicated to cdvancing its rnember,s' ability to achiet,e excellence in delivering economic
developnrcnl services to tlteir communities and btrsiness clients. CALED's memhership cottsists af public and privute
organizalions ond iruJitiduals in,-tslved in econontic de,'elopntenl: lhe business of crealing and retaining jrsbs

With over 900 members. CALED is one of tlie largest Econornic Developrnent organizations in the country. Our staffand
leadership are dedicated to supportin-e the efforts of economic developers. as well as educating elected officials and the
general public about the value of Economic Derrelopment. We continuously strive to provide qualir,'.- services and
programs to further those goals.

Here are some olour services and programs:

. CALED's Annual Conference is the largest gathering of the econornic development net'nvork in Califbniia. It's a
great place to nefivork. leam, and share _vour feedback and experiences q'ith peers.
. The Arvards af Excellence program has recognized and reu,arded the achieveilents of Califonria's economic
developers for almost three decades.
. The California Enterprise Development Authorit-v issues irrdustrial developmert bonds to help your
rnanufacturers and non-profits. It is also quickly becomiirg the clearinghouse for rvhere to find Economic
Developrnerrt fi nancinc resources.
. The California Academy'frr Econamic Development is a 501(c)3 organizatio:r created to further Econoinic
Development research and education.
. The Economic Development Ccrp*ratisn (5DCi Ne€rvork is a listing of regional and sub-regional EDCs that
cover the state. CALED convenes a meeting of this letrvork once a ),ear.
. Econamic Devel*pment Performance l\{easures need to be created so econornic developers can show their
progress and horv they compare rvith other organizations. CALED leaders are rvorkilg with national and international
econornic developers to create a standard set of measures that econornic developers can use to measure their
successes and the effectiveness of their programs.
' Economic Der.elopment incentives are offered by man,v of our members. We fonvard businesses looking for this
infonnation to Califomia's Business Investment Sen'ices Depaltment.
. The Professional Advisory Ser-vice (PAS) jump-starts your comlnunitv's Economic Development program.
' Our Local Elected Officials training (LEO) trains your leaders on what you do and r.vhy'Economic Development
is a revenue generator--not just another program.
. Ke),s to Successful Economic Develcpmer:t training teaches the basics of Economic Development and is
accredited by the lntemational Economic Development Council as a Basic Conrse, rvhich is the first step to becoming
a Certified Economic Developer (CEcD).
. The Impact Calcalator gives you reliable, defensible data on the impact of Economic Development projects.
' "'Who's Who in ED Directory" promotes California's Econorlic Developers to over 35,000 recipients.
' Califomja Business Images tells Califbrnia's positive Econornic Developrnent story through the eyes of successful
businesses.
. Our ED Career Center posts nerv jobs in Economic Developrnent each neek. It is one of the rnost popular
services CALED offers.
. Tools for Business Success program is the most comprehensive- one-stop resource for businesses to get find
infonnation and resources to get their business srorvins and keep it thrivine.
City of Lakeport Professional Advisory Service December 73 and 74,2070

Professional Advisory Team

Ecor,rorqtcr
UFVELOPMENTIE
"oN CALL".==

Greg O'Sullivan started his career in economic development in 1991.

He has served as Executive Director, President and CEO of the Colusa
County EDC, Tehama Local Development Corporation and Shasta
EDC. He has worked in the private sector with the distinguished Chabin
Concepis, Inc. a nationally recognized economic development
consultant and ROlVision an international lead generation firm

In 1996 Greg formed Economic Development "ON CALL". Some of his

accomplishments include securing over $40 million in grant and loan
awards and several successful State Enterprise Zone designations,
including Zones in lmperial County, Coachella Valley (Palm Springs),
and Siskiyou County

Mr. O'Sullivan is an aggressive and tactical marketing and sales professional, demonstrated by
his attraction and recruitment work with the Upstate California Economic Development Council.
In 2005, Mr. O'Sullivan reorganized the states Team California Marketing Program and has
provided technical assistance to more than 50 different communities and economic
development corporations in California and Oregon Over the course of his career, Mr.
O'Sullivan has worked with hundreds of companies resulting over 1,700 jobs created, expanded
or retained. The role Mr. O'Sullivan has played in each particular project has been very different.
On several occasions he has been involved at the "front end" to answer an inquiry as part of a
marketing and business recruitment campaign. In other instances he has "structured a deal" or
"negotiated" an incentive package. As a consultant Mr. O'Sullivan has been asked to "close the
deal" after a community or company has come to a stalemate.

Larry Cope is the Director of Economic Development for the Tuolumne County Economic
Development Authority in Sonora, California. He is responsible for the retention and recruitment
of businesses for Tuolumne County. He is currently the Chairman of the Central Sierra
Economic Partnership, a regional group of Economic Development Organizations promoting the
Motherlode Region of California. Mr. Cope also serves on a board member of TEAM California,
the California Downtown Association and serves on the CALED PresidentialAdvisory Board. He
is a former Chairman for the Central Coast Marketing Team and the Silicon Valley Economic
Development Authority.

Prior to his position in Sonora, he served as Executive Director of the Gilroy Economic
Development Corporation in Gilroy, California. He has also served as Executive Director for the
Junction City-Geary County Economic Development Commission in Junction City-Geary
County-Fort Riley, Kansas from 2001 to 2005 and Executive Director for the Jefferson County
Economic Development Commission in Oskaloosa, Kansas from 1996 to 2001 .

Califurnia Association for Local Economic Development Page B

City of Lakeport Professional Advisory Service December 73 and 74,2070

He is a 2007 Graduate of the California Downtown Association Institute, 2003 graduate of the
Community Development Institute, 2001 graduate of the Economic Development Institute, and a
2001 graduate of the National Development Council's EDFP Institute. He holds National
Certifications of PCED (Professional Community and Economic Developer), EDFP (Economic
Development Finance Professional) and a (CDP) Certified Downtown Professional

Currently, Mr. Cope teaches e-marketing and web based applications at various conferences in
California. He has taught marketing at the Economic Development lnstitute in Oklahoma City,
Oklahoma and advanced years studies at the Community Development Institute in Conway,
Arkansas. He was a guest speaker at Kansas State University on economic development from
2002-2005' During his fourteen years in economic development, he has served on many
regional economic development partnerships, statewide economic development organizations,
local and statewide downtown development organizations and numerous local and regional loan
boards.

He is married to Kimberly Teter-Cope who is a transportation planner

Steve Art -
Steve Art, age 51, was raised in Southern California and relocated to Northern California in
January 2001 to become the Economic & Redevelopment Manager for the City of Lincoln.

As the Economic & Redevelopment Manager for the City of Lincoln, Steve is responsible for the
attraction and retention of business to Lincoln working through the City Manager and the Lincoln
Economic Development Committee. Steve headed up the City's successful bid to become a
2006 All-America City given by the National Civic League.

Steve works locally and regionally to improve the economic climate of Lincoln, Placer County
and the State of California

Steve works with developers, land owners, businesses and neighboring communities to grow
the economic viability of Lincoln and the region. He is responsible for all land acquisitions and
sales and full operations of the Redevelopment Agency as well as the development of programs
and services to facilitate the economic vitality of the City..

Steve also sits on the Board of Directors for the Lincoln Chamber of Commerce. Steve was
also the past president of both the Placer Valley Tourism Business lmprovement District and
Child Abuse Prevention Council of Placer County.

Prior to his employment with Lincoln, Steve was the General Manager of MicroGrow
Greenhouse Systems a manufacturer of control devices for large commercial growers. He was
also the executive director for the Murrieta Chamber of commerce and prior to that spent 15-
years as the marketing and public relations manager for southern California hospital systems.

Califurnia Association for Local Economic Development Page 9

 City of Lakeport Professional Advisory Service December 13 and 74, 2070

WILLIAM R. (BILL) DAVIS MPL CPE CToP. Mr. Davis is Founder of WR'
Davis Collaborative - a firm focused on achieving the collaborative and
collective goals and objectives of groups with the liberating power found in
facilitation tools, techniques, and resources. Mr. Davis is a co-founding
Principal of Sacramento Professional Facilitators
- athefacilitation training
center in Old Sacramento and a founding Co-chair of nationwide ToP
Network - an association for ToP trainers and practitioners. Mr. Davis has
extensive facilitation experience, training and certification. He has ceftification
in public participation by the fnternational Association for
Public
Pafticipation, he is a Certified Technology of Participation (ToP)@ Trainer and Facilitator (CToP), and
an fnternational Association for Facilitators Certified Professlonal Facilitator (CPF).

Formerly, Mr. Davis served as the Vice President of Facilitation and Training for the California Association for
Local Economic Development (CALED) and Director of the California Academy for Economic Development. His
areas of expertise include workforce and economic development partnerships for creating jobs, strategic
planning, action planning, and keys to effective plan execution.

At CALED Mr. Davis directed the five-year CALED Welfare-to-Work and Workforce Investment project funded by
The US Depaftment of Commerce Economic Development Administration (EDA) with funding matched by private
sponsors. In delivering his duties at CALED, Mr. Davis has trained and facilitated over 1,000 community leaders
and elected officials and 500 frontline staff in making the connection between economic development and
workforce investment programs. In addition, Mr. Davis was a member of the Economic Development and Small
Business Workgroup for the State's California Workforce Investment Board.

Prior to serving CALED, Mr. Davis serued as the Associate Director of the Center for Economic Development at
the University of Southern California. At the University, he also served as a lecturer, the Director of the
International Resort Research Center, and the Associate Director of the Professional Development Depaftment
within the School of Poliry, Planning and Development. In addition, Mr. Davis brings to his clients eight years of
experience in project management and consulting for private industry. Mr. Davis has also served as a Special
Projects Analyst for the Los Angeles Community Redevelopment Agenry, assisting in the development and
adoption of emergency earthquake redevelopment plans following the No(hridge eafthquake in 1994.

Mr. Davis' research activities have focused on human resource issues pertaining to economic development; the
information technology needs of California's local economic development and redevelopment agencies; urban
economic analysis; and a National Science Foundation-funded study of the economic impacts of business
interruption caused by the Nofthridge eafthquake.

Emphasizing economic development and information technology, Mr. Davis earned a Master of Planning from
the USC School of Poliry, Planning and Development. He earned his Bachelor of Arts in Economics from the
University of California, Davis.

Contad Information: Bill Davis works as a principal with the Sacramento Professional Facilitators, at tt29
Firehouse Alley, Sacramento, CA. 95814. You can reach him at (916) 806-6407 or by
emailing him at bdavis@wrdcollaborative.com.

California Association for Local Economic Development Page 70

City of Lakeport
CALED Professional Advisory Service (PAS) Event Schedule

Dav 1: Mondav. December 13, 2010

Location: Lokeport City Hall

8:30-9:00 AM PAS TEAM ORIENTATION: ECONOMIC DEVELOPMENT TASK FORCE

Location: Front Conference Room, City Hall

Participonts: Mdyor, LEDAC Chair, City Manager, Redevelopment/ED Director, Economic

Development Manoger

9:00 - 10:00 COMMUNITY TOUR

Porticiponts: Mayor, LEDAC Chair, City Manager, Redevelopment/ED Director, Economic
Development Manoger

10:00 - 10:45 INTERVIEWS*

Front Conference Room: ED Director, Richard Knoll; ED Manager, Dan Buffalo; Lake County
Deputy CAO - Economic Development, Debra Sommerfield

Back Conference Room: City Manoger, Margdret Silveird

10:50 - 11:35 INTERVIEWS

Front Conference Room: Council Member, Stacey Mqttina

Back Conference Room: Seth Desimone, Executive Director, Lake County One-Stop

11,:45 - 12:30 PM INTERVIEWS

Front Conference Room: Mayor Suzanne Lyons

Bock Conference Room: Mork Rowitsch, Dean of lnstruction, Mendocino College - Lakeport
Compus; Wally Holhrook, County Superintendent of Schools

12:30 - 1:00 Lunch (on your own)

1:00 - 1:45 INTERVIEWS

Front Conference Room: LEDAC Members Richard Hoyt ond Robert Klinger

Back Conference Raom: Melissd Fulton, CEO, Lake County Chomber of Commerce, LEDAC
Member
2:OO-2:45 INTERVIEWS

Front Conference Roam: Council Member, Tom Engstrom

Back Conference Room: Real Estate/Development Representotives: Anitq McKee, Anne

Baker, Linda Lindeblod, Jim Mogliulo, ond Anno Girod

3:00 - 3:45 INTERVIEWS

Front Conference Room: Lakeport Planning Commissioner, Suzonne Russel

Back Conference Room: Reserued

3:50 - 4:50 CALED Deliberation

Locotion: Front Conference Room

Pa rti ci pa nts : CALED Re prese ntatives

5:OO - 6:00 Initial lmpressions, Findings, and Discussion

Location: Front Conference Room

Porticipants: PAS Teom (Moyor, LEDAC Chair, City Manager, Redevelopment/ED Director,
ED Manoger)

Dav 2: Tuesdav, December 14,2010

Location: Lakeport City Holl

8:30 - 9:15 AM INTERVIEWS*

Front Conference Room: Reserued

Bqck Conference Room: Reserued

9:30 - 10:15 INTERVIEWS

Front Conference Room: City Department Heads

Back Conference Room: Reserued

10:30 - 11:15 INTERVIEWS

Front Conference Room: Reserued

Rev L2/8/2O10

City of Lakeport

Economic Development Program

 Back Conference Room: Reserued

1,I:15 - 12:OO INTERVIEWS

Front Conference Room: LEDAC Members Wilda Shock, Carol Hoys, ond Nina Morino

Bock Conference Room: LEDAC Members George Linn dnd Milton Heath

12:00 - 1:30 Lunch (on your own) and CALED Representative Deliberation

Locotion: Back Conference Room

Pa rti ci pa nts : CALE D Re p re se ntative s

1:30 - 4:00 Roundtable Discussion: Presentation of Findings, Observations, and

Recommendations

M od e roto r : CALED Re p rese ntqtives

Locati on : Co u n cil Cho m be rs

P a rtici pa nts : Al I Pa rtici po nts

*All interviews will be held at Lakeport City Hall, 225 Park Street, Lakeport

**Please contact Dan Buffalo, Economic Development Manager for more information, (7O7) 263-56t5.

Rev \2/8/2O\O

City of Lakeport

Economic Development Program

City of Lakeport

Professional Advisory and Facilitated Action Plan Participant List

Title/Position Name Oreanization Affiliation Attendance Group (G)/lndividual (l)

y 1 AlldaY
City Manager Margaret Silveira City Staff Yes
T Att day

M
All day
Economic Development Director Richard Knoll City Staff Yes G- Staff
T
All day

M
nllJay
Economic Development Manager Dan Buffalo City Staff Yes G- Staff
T
All day

M N/A
Department Heads N/A City Staff Yes G - Staff
I 9-Noon

Deputy CAO - Economic M

io-t
5
Development
Debra Sommerfield I
:
Lake County Staff
TI Yes G - Staff
: 1-5

l M
6 LEDAC* Candidate Alan Flora Lake County Staff (Planner) No G - LEDAC(1)
l T

Privaie Sector Manager - M

7 LEDAC* Candidate Sherrye Schwarz No G - LEDAC(1)
Retired T

M
All day
LEDAC* Candidate Wilda Shock College Instructor, Former
T
Yes G - LEDAC(1)
Lake County Marketing All day

* La ke port Economic Develo pme nt Advisory Com m ittee ( LEDAC)

 oireiior

M
N;;; r s
LEDAC* Candidate Richard Hoyt Business Owner TI Yes G * LEDAC(1)
Noon - 5

Private Sector Financial N/A

M
10 LEDAC* Candidate George Linn Yes G - LEDAC(2)
Professional - Retired TI
All day

i*..riiu. oifecior, N/A

1'l
M
LEDAC* Candidate Carol Hays Lakeport Main Street Yes G - LEDAC(2)
T
Association 9:00 - 6:00

CEO, Lake County Chamber M

nirorv
LZ LEDAC* Candidate Melissa Fulton Yes G - LEDAC(2)
of Commerce T
Noon-5
l

M
Ail d;y
Milton Heath
I

13 LEDAC* Candidate l Business Owner - Retired Yes G - LEDAC(3)

T
l
Allday
l

I
i
M
e-Nd;
t4
I

LEDACx Candidate I
I
Nina Marino Education Consultant Yes G - LEDAC(3)
T
1-5

M
t-6
15 LEDAC* Candidate Robert Klinger Private Sector Manager Yes c - LEDAC(3)
I
12-6

M
15 City Council Member - Outgoing Ron Bertsch City Council No I
T

ti City Council Member

l
Suzanne Lyons City Councif
M
L1-5 Yes I

* La keport Econom ic Develo pment Adviso ry Com m ittee ( LEDAC)

 -r
t 1L:30-5:00

M
18 City Council Member - Outgoing Jim lrwin (Mayor) City Council No I

t9 City Council Member Bob Rumfeldt City Council

M N;:
T Response

M N;
20 City Council Member Roy Parmentier City Council
T Response

M
10-Noon
2L City Council Member - Elect Stacey Mattina City Council
T
Yes
10-Noon

i M
arioav
22 City Council Member - Elect Tom Engstrom City Council
T
Yes
I
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io
I
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Executive Director, Lake County M I 8-6
23 Seth Desimone Force Training, Retention, Yes G - Education/Training
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Creation) 8-6 .

Lake County Office of M

All day
24 county superintendant of schools Wally Holbrook Yes G - Education/Training
Education T
8-3

n, I 10-2 l
l

25 Dean of lnstruction Mark Rawitsch Mendocino College Yes (] - roucailon/ trarnrng

T --
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Association President
Lake County Association of Mi1-s G - Real
26 Anita McKee Yes
Realtors Estate/Developme nt
N/A

f Lakeport Economic Development Advisory Committee (LEDAC)

 '-t
Lake County Association of 1-5
M -
:

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27 Association Board Member Anne Baker i

ltors
Yes
l

l
Rea T
N/A Estate/Development
l

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i

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28 Realtor Linda Lindeblad ReMax Realty
M
Yes
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M 1-5
29 Rea ltor Jim Magliulo Country Air Properties Yes
G - Real

T Allday Estate/Development

Erin Smith- Lakeport Unified School M

29 District Su perintendent No G - Education/Training
Hagberg District
T

i
Lakeport Planning M AtJrv
30 Planning Commissioner Suzanne Russel Yes I

Commission
I

I T Allday
I

311
l
Planning Commissioner
Nol
Response

No
32 Planning Commissioner
Response

N;
33 Planning Commissioner
Response

N;
34 Planning Commissioner
Response

Busineis Owner Karan Mackey Lakeport English Inn

* La keport Econom ic Developme nt Advisory Com m ittee ( LEDAC)

 Toni and Bob
Business Owner Lakeport Tire
Funderberg

Business Owner Mik; rwine Attorn.v

paur inJ slibrrt

Business Owner Hillside Honda
Breunig

Business Owner Pam and Buck Allen Allen's Furniture

AGM Property
Business Owner Anna Girod
Management

Business Owner McDonald's Owner

s;iin;ir own;; Arir Cornlir

Business Owner oirn"y'r waiJrsporii

* La keport Economic Develo pment Advisory Com m ittee ( LEDAC)

City of Lakepott Professional Advisory Service December 73 and 74,2070

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Califarnia Association for Local Economic Development Page 79

City of Lakeport Prafessional Advisory Service December 73 and 14, 2070

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. Build Local ED Effectiveness and Capability
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The Califarnia Assorrat or far l-ocal ftanonrb lb,rdordnent

City of Lakeport

California Association for Local Economic Development Page 20

City of Lakeport Professional Advisory Service December 13 and 74, 2070

The Califomia Association for Economic Dwelopment

CALED
Seruices

The Calitornia Assaciation far Local Ecanomic Development

California Academv for

Economic Development
. A 501(c)3 foundation

. Mission:
- Research: Tools forBusiness Success
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program, shengthen ties to University system.
Certificate in ED program

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City of Lakepofi

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City of Lakeport Professional Advisory Service December 73 and 74,2070

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Professional Advisory Servrce

Bring team of ED experts to a community to

help jump start or enhance their economic
development program

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Crty of Lakeport

California Association for Local Economic Development Page 22

City of Lakepoft Professional Advisory Service December 13 and 74,2070

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The edifonia Assocratron for locd Eaonamic oel,rcIopment

Crty of Lakeport

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City of Lakeport Professional Advisory Service December 73 and 74,2070

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Green Water Treatment

Solutions
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recycles storage, reuses sludge, addresses water
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City of Lakeport Professionul Advisory Service December 73 and 74,2070

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The California A,ssciation for Local ftanomic D€I'/€'oD',?ent

Customer Service Academy

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City of Lakeport

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Ctty of Lakepori

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MOTIVES

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 CITY OF LAKEPORT
City Council
Lakeport Redevelopment Agency
City of Lakeport Municipal Sewer District

STAFF REPORT
RE: 410-420 Forest Drive – Affordable Housing Project MEETING DATE: 05/17/2011

SUBMITTED BY: Richard Knoll, CDD/RHED Director

PURPOSE OF REPORT: Information only Discussion Action Item

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

The City Council is being asked to authorize preparation of an agreement to provide financing and donate
(future) Agency land located at 410-420 Forest Drive to United Native Housing Development Corporation
(UNHDC) for development of a single family residential affordable housing unit.

BACKGROUND:
Redevelopment Agency staff was advised by the County in late 2010 of the availability of tax defaulted land
at 410-420 Forest Drive. Staff filed paperwork to acquire this land for an affordable housing project and
has been working with UNHDC on the development of an income-qualified home with no ethnic
limitations. The initial request from UNHDC was for financial assistance. The project now involves a
recommendation to donate the land on Forest Drive and provide a small grant to the non-profit
corporation for development of the affordable home.

DISCUSSION:
UNHDC has submitted the attached information in support of the request, including the cover letter,
project pro-forma (Budget) and a site plan. In addition, an elevation of the proposed home is attached.
Agency staff has submitted the request to the County to acquire the land to the County, but the process has
yet to be completed. It is underway and should be completed soon. The Agency has the “right” to acquire
the land for the amount of back taxes which is approximately $8,000. Once that transaction is completed,
the Redevelopment Agency will become the owner of the lots.
The property is located at the intersection of Forest Drive and Sunset Drive in the Clear Lake Terraces
Subdivision and is not within the Redevelopment Project area. The land is vacant, but there was at one time
a home on the lot, sewer and water lines extend to the lots. There are two parcels, which will be merged
and donated (as recommended) to UNHCD.
A 1,332 square foot three-bedroom, two-bath, manufactured home will be developed along with a two-car
garage. Curb, gutter and sidewalk (135 feet) along Forest will be constructed in accordance with City
Ordinance along with a concrete driveway and onsite walkways.

OPTIONS: Approve the proposal. Modify and approve the proposal. Deny the request.

FISCAL IMPACT:
None $8,000 (estimated) lot acquisition, plus a $35,000 grant for a total of $43,000
Account Number: 219-6010-990 (Redevelopment Housing) Comments: None

Meeting Date: 05/17/2011 Page 1 Agenda Items #VIII.B.

SUGGESTED MOTIONS:
Move to approve the acquisition of the tax default lots at 410-420 Forest Drive (APNs 026-052-28 and
026-052-36), merge the properties, and enter into an agreement to donate the merged property to United
Native Housing Development Corporation for development of an affordable housing unit, require an
affordability agreement. Further move to provide $35,000 in grant funds for site improvements and make a
finding that the actions of the Agency are consistent with the Redevelopment Plan, the Five-Year
Implementation Plan and the Lakeport General Plan Housing Element.

Attachments: UNHDC Written Request

Site Map
Property Specifications
House Elevation – Garage Plans

Meeting Date: 05/17/2011 Page 2 Agenda Items #VIII.B.

Aprrl14,20II

Richard Knoll
Development/Redevelopment Director
Lakeport Redevelopment Agency
200 Park Street
Lakeport, CA 95453-8840

Dear Mr. Knoll:

United Native Housing Development Corporation (LINHDC) formally

requests that the Lakeport RDA donate the lots located at 410 and 420
Forest Drive, identified at lots 29 and 30 on the plot map for Clear Lake
Terraces Subdivision 4 to LINHDC to begin its development of new, in-fill
affordable homes in Lakeport. We also request that the RDA grant a
$35,000 subsidy to support this project. Our new Infill Homeownership and
Neighborhood Revitahzation Project seeks to promote homeownership on
infill lots and reduce the number of blighted and under-utilized properties.
LINHDC is the frrst Native Community Housing Development Organization
(CHDO) certified by the state of California's Depafiment of Housing and
Community Development. TINHDC is sponsored and supported by
Northern Circle Indian Housing Authority.

It also should be emphasizedthat this housing opportunity is not restricted

to, and does not provide any preference to Native Americans. It is open to
all income qualified households. LTNHDC has been aggressively marketing
the homeownership opportunities available through this program to all
segments of the community in Lakeport and Lake County.

LTNHDC has received $800.000 from HCD to operate a first time, infill
homebuyer program in Lake County. Through this program, IINHDC will
recruit qualified buyers, prepare them for homeownership, assist them in
securing a conventional loan, develop the new home and provide a silent
HCD second loan to cover that portion of the sales price that could not be
covered by the 1't mortgage. The $800,000 HOME program award will
provide buyers with 30 year, silent second loans that can cover up to 49%o of
the purchase price, require no debt service and accrue no interest during the
course of the their 30 year term.

As an infill program, the goal is to link quality and attractive, affordable,

first time homeownership opportunities to revitahzation needs in blighted
areas by an infill development strategy.

We propose to install a manufactured home on the Forest Drive lot that will
have upgrades, quality components and finishes, and architectural
enhancements added so that they will blend in with the existing housing.
We have done our due diligence on this proposed project and feel that
placing a single manufactured home with a two car gara:ge on these two lots
is the most feasible approach given the additional costs of curbs, gutters and
sidewalks that will be required by the City. (Please see the attached "costs
of development" for this project.) We therefore request that the City assist
us in a voluntary merger of the two lots.

We have also leamed that the owner of the lot to the northeast of lot 30, at
the intersection of Sunset Drive and Forest Drive, constructed a carport that
extends into the right-of-way atthat intersection. Additionally, the
intersection, as it exists, represents a very difficult angle to construct a safe
turn from Forest onto Sunset. III.JHDC would be willing to donate enough
property atthat corner to clear the right-of-way area and enable the City to
construct a safe intersection.

There is an existing water meter on the property and City records show there
is also an existing sewer clean-out. This is consistent with the information
that there was a house on this lot previously that was destroyed by a fire.
We request that the City make a finding that sewer and water expansion fees
will not be required. Please note, the project budget and grant request is
based on the assumption that the expansion fees will not be required.

As is well known, new home construction is very difficult in Lake County

and Lakeport because of the number of foreclosures and short sales which
have dragged home prices below the cost of new construction. The HOME
program, like most lenders, requires that the appraised value of the lot and
manufactured home does not exceed the sales price, or in our case,
development costs. Because the 1322 square foot 3/BR/2BA will price at
$194,000 and the appraised value will likely be in the range of $150,000 -
$170,000, we will need a non-collateralized grant to meet this requirement.
This type of grant is necessary because any funds that will be recaptured
upon sale, - even funds that are gradually forgiven - may have to be
recovered in the sale of the house. Thus they will be treated as a loan or
encumbrance and considered as part of the purchase price. We are
requesting that the Lakeport RDA make a grant of $35,000.00 that will
enable us to begin this project immediately. The RDA grant must be non-
collateralized to meet the HOME program requirements to ensure that the
grant will "buy down" the sales price of the home.

The benefits to the City of Lakeport are three-fold. First, the neighborhood
will be substantially improved. Second, this home will remain "affordable."
And, third, LTNHDC will perform compliance monitoring. Once your
Agency commits to donating the lots and making the grant of $35,000, we
will be able to begin this project.

We appreciate your willingness to support LINHDC in this project and hope

that upon the successful completion of this home, we will be able to develop
further first time buyer programs in Lakeport.

Sincerelv.

Geraldine A. Lewis
Special Proj ects Coordinator
Lakeport Donated Lot: 410 and 420 Forest Drive

Brand Hampton Hampton

Model 50003F 50003F
Approximate Size 27'x50' 27'x50'
Square Feet 1,322 1,322
Bedroom/Bath 3/2 3/2
Hard Costs Cost Cost
House Costs
Base Model with Options 78,242 78,242
Frieght 4,000 4,000
Setup 5,000 5,000
Drywall, Carpet, Phone,, Dryer Vent, Cleaning 3,000 3,000
Escrow (Home Only) & HCD Fees 500 500
Gutters, downspouts & splash blocks 1,000 1,000
Subtotal House Costs 91,742 91,742

Site Work DBS Const. est D&D Const. Est.

Engineering: Lot Lines & Curb & Gutter, Topo 6,000 6,000
Concrete Stem Wall Foundation 13,975 14,406
Wood landing 5'X5' & Stairs Front & Rear 3,000 3,200
Integrated Front Cover 8'X6 wood only 2,350 2,700
Connect Water 30' & Sewer 50' 918 1,000
Trench Propane 20' 390 350
Concrete Parking 400 Sq Ft 3,120 3,300
Building Permit estimated only 1,500 1,500
Soil Erosion Control 1,200 1,000
County Approached Encroachment 1,560 Inc
Air Conditioner/HVAC 3,400 3,400
Walkway 200sq.ft. 1,400 1,400
Landscaping & Irrigation 5,000 5,000
2 Car Garage: 13,000 13,000
Tree Removal 1,000 1,000
Sidewalks, curbs, gutters, paveout 135' 17,706 18,900
Final Grading/Flat Improvements 1,650 1,500
Subtotal Site Work 77,169 77,656

Contingency 8,446 8,470 5.00%

Total Hard Costs 177,357 177,868

Land Costs
R-1 Parcel 0 0
Transaction Costs 5,000 5,000
Other Costs: Merger TBD TBD
Total Land Costs 5,000 5,000

Fees & Permits:

School District (@2.24) House Only 2,962 2,962
Fire district (@1.00) House & Garage 1,522 1,522
Road Tax 0 0
Encroachment Permit/Fee TBD TBD
Road Const Impact Fee N/A N/A

Other: 0 0
Total Fees & Permits: 4,484 4,484

Utility Connection Fees

Water - need to confirm existing Existing Existing
Sewer - need to confirm existing Existing Existing
PG&E Deposit 1,000 1,000
Other 0 0
Total Utility Fees 1,000 1,000

Estimated Sales Price 187,841 188,352

Construction Loan Costs

Construction Loan Amount: Less 35K RDA Grant $152,841 $153,352
Construction Loan
4 Months @ 6% $3,057 $3,067
Origination Fee @1% $1,528 $1,534
Closing Costs $1,000 $1,000
Taxes $200 $200
Appraisal
Title & Document Fees $750 $750
Total Loan Costs $6,535 $5,801

Total Development Costs $194,376 $194,152

Sales Price with $35,000 Grant Subsidy $159,376 $159,152

Broker Price Opinion: Highest List Price $174,900 $174,900

Broker Price Opinion High $171,398 $171,398
Broker Price Opinion Low $147,593 $147,593
Broker Adjusted Value $158,702 $158,702
 LEVEL 4

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