Lake County delays Oakwood Homes construction contract for 24-unit project; county says final legal details remain

The Lake County Board of County Commissioners on May 20 tabled consideration of a construction agreement with Clayton Properties Group, doing business as Oakwood Homes, for construction of the 102 housing project.

County housing staff and counsel told commissioners the contract is largely complete but still requires several legal and drafting fixes before the county should execute it. County staff said negotiations with Oakwood’s attorneys have produced multiple redlined drafts that need reconciliation to ensure the county’s interests — including buyer protections and performance surety — are spelled out clearly.

Housing program manager Jackie Wellahan and rural planner Michael Yurman told the board the project is for 24 housing units. Staff said they have begun contacting selected buyers from the project’s initial lottery but reported substantial attrition: nine buyers remain under contract from an original pool of 16. Staff also said 85 additional applicants are in the system and that 35 have indicated they will submit completed applications for the upcoming application period.

Staff provided two scheduling details for prospective buyers: the deadline to submit a completed application is June 13, and staff said a lottery is scheduled for July 3 (application deadline and lottery date as stated in staff remarks).

Key contract terms that staff said still need final clarity include the county’s purchase of two units, buyer credit provisions, and the developer’s performance bond. County counsel and staff said the contract is “substantial” and that executing it will begin the process of finalizing buyer contracts and moving the project toward construction; they asked for more time to produce a clean draft.

Commissioner (mover not specified) moved to table the construction agreement until the board’s May 27 meeting; the motion was seconded and passed on recorded voice vote (three ayes). Staff said they expect to provide a revised, consolidated draft for the May 27 meeting.

The board’s action pauses any immediate county-level authorization for Oakwood to receive a notice to proceed while staff and counsel finalize contract language and confirm buyer interest.

Ending

Staff committed to circulate an updated, consolidated draft to commissioners as soon as it is available and to continue discussions with Oakwood and their counsel. The contract will return to the board for final action at the May 27 meeting.