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Butte County approves assignment of Scotty’s Landing lease with updated insurance terms
Summary
The Board approved assignment of the county lease for Scotty’s Landing to TY (TYK) Cape Holdings, updating the insurer requirement (from $500,000 in 1983 to $1,500,000 present value) and setting steps for the new lessee to cure outstanding code and food-safety issues.
The Butte County Board of Supervisors voted Jan. 14 to authorize the assignment of the 99‑year lease for Scotty’s Landing to TY/TYK Cape Holdings and to update insurance requirements and compliance conditions attached to the lease.
Mike Hudson, director of general services, reviewed the site’s background, describing a convoluted title history and noting Scotty’s has been operating on the river since the 1950s. Hudson told the board the existing lease required $500,000 in insurance at the time of signing and, to reflect present-day risks and inflation, staff proposed updating that coverage to a present value of $1,500,000 with periodic adjustments.
Elaine McSpadden, environmental health division director, described the primary food‑safety issues that led to a red-tag status at the site: inadequate electrical service that prevented refrigeration, evidence of vermin intrusion and building defects. McSpadden said the electrical issues were a central concern and that the prospective assignee is aware of the improvements required to reach compliance.
Scott Clapp, president of TYK/TY Cape Holdings and the prospective buyer, addressed the board and said the company has entered into a purchase agreement with the current owner and plans phased restoration with a goal of reviving Scotty’s as a community recreational asset. "The transfer of cleanup costs and liabilities is the first step in the restoration for Scotty's," Clapp said, noting intent to restore a marina and consider development on an adjacent three-acre parcel.
Board members asked whether the 180‑day cure period had begun and how enforcement would work; staff said the 180‑day notice period is contractual and overlaps but is separate from permitting by environmental health and code enforcement. The resolution authorizes the chair to sign the assignment paperwork and passed after public comment and discussion.
The assignment preserves the lease’s remaining term; the county emphasized the lessee must meet public‑health and code requirements and that staff will monitor progress under the cure timeline.
