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MEMORANDUM
TO: Board of Supervisors
FROM: Carol J. Huchingson, County Administrative Officer
DATE: December 19, 2017
SUBJECT: Consideration of staff recommendation for making the Lucerne Hotel available for purchase, lease to purchase or long-term lease agreement
EXECUTIVE SUMMARY:
On November 28, 2017, your Board considered staff’s update regarding the status of the Lucerne Hotel. With the Hotel now fully available for repurposing, at the close of the discussion, you directed staff to research and return to with options for making the Hotel available for lease and/or purchase.
Staff recommends following a procedure similar to that conducted in 2011 when the Hotel was made available through a Request for Proposals (RFP) process, with the following options:
1. Proposer will purchase the property from the County.
2. Proposer will purchase the property from the County through a Lease to Purchase Agreement.
3. Proposer will enter into a long-term lease agreement with the County, with a term of not less than 15 years and options to extend.
Following the RFP process, and selection of the top proposer subject to the approval of your Board, the County would enter into an option agreement, either for lease or purchase, as soon as practical. An option agreement would bind the County while providing the selected proposer flexibility as negotiations continue until a long-term agreement is finalized.
Provided your Board concurs with this procedure, staff will return to your Board in early 2018 with the necessary resolution(s) to declare your intention to sell or lease. Staff will also draft and issue a new RFP in early 2018. In contrast to the 2011 RFP which was focused on educational pursuits, the 2018 RFP will invite a broader array of potential proposals to include education and training, hotels and other economic development endeavors, community design and revitalization and more, all intended to breathe life into the Lucerne Community.
Consistent with the terms of the 2011 RFP and to ensure a level playing field, the 2018 RFP will also require prospective proposers to submit Qualifications Letters, describing business affiliations and financial resources, prior to the County Administrative Office arranging for showings of the Hotel.
FISCAL IMPACT: _X_ None __Budgeted __Non-Budgeted
Estimated Cost:
Amount Budgeted:
Additional Requested:
Annual Cost (if planned for future years):
FISCAL IMPACT (Narrative): None
STAFFING IMPACT (if applicable): None
Recommended Action
RECOMMENDED ACTION: Direction to staff to develop and release, in early 2018, a Request for Proposals (RFP) for purchase, lease to purchase or long-term lease agreement for the Lucerne Hotel, returning to your Board as soon as possible for consideration/approval of top proposal(s).