MEMORANDUM
TO: Board of Supervisors
FROM: Mireya Turner, Community Development Director
Michelle Irace, Senior Planner
DATE: August 12, 2025
SUBJECT: Approve Joint Lease Termination Notice and Release of Liability of Geothermal Agricultural Park Lease (No. 015254) Between the County of Lake and S-Bar-S Quarry located at 7765 S State Hwy 29, Kelseyville, APN 009-022-56 (formerly -50) and Authorize the Chair to Sign
EXHIBITS
A. Geothermal Ag Park Lease (No. 015254), as Amended December 1, 2000
B. Memorandum Regarding Site Closure, Dated August 21, 2006
C. Joint Lease Termination Notice and Release for Board Approval
D. Email Correspondence from the Property Owner Requesting Lease Termination
EXECUTIVE SUMMARY
On October 1, 1985, the County of Lake Board of Supervisors approved a Geothermal Agricultural Park Lease (No. 015254) between the County of Lake and S-Bar-S Quarry (hereinafter referred to as "Lease"). The Lease's purposes included the development of geothermal water resources and providing heat to a vocational greenhouse facility and demonstration project to be operated by Mendocino-Lake Community College. The total Lease area encompassed 22.45 acres; a 10,000 square foot area was identified for the Mendocino College greenhouses and the remaining area could be rented to commercial greenhouse operators and other geothermal agricultural operations (hereinafter referred to as "Ag Park"). The Lease specifies that the County could sell energy to commercial operators at a price which would cover the County's operation, maintenance, replacement, and other costs required to maintain the geothermal and irrigation systems. The executed Lease is attached here as Exhibit A.
At that time the County had grant funding for the development of a commercially viable site to use low temperature geothermal resources for greenhouse heating. Two geothermal production wells and one injection well were drilled, along with other improvements that were made to bring the site i...
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