As Novato grapples with budget deficits, a resident has offered to pay $30 million to purchase a city-owned mobile home park that city staff say could pose future financial problems.
The City Council is set to meet in closed session on Tuesday to discuss the proposal by Dean Moser to purchase the Marin Valley Mobile Country Club at 100 Marin Valley Drive. Moser is the founder of HCA Property Management Inc. in Novato and said the company owns 17 mobile home parks on the West Coast.
Moser made his pitch at the City Council’s budget hearing on June 13, when city officials discussed how to cover a projected $1.3 million budget deficit and...
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“The report states the park “operates at a substantial deficit, has ongoing deferred maintenance, and presents increasing administrative and financial burdens on the city… The mobile home park’s expenses have exceeded revenues by a total of $3.6 million during the past four years. Without more revenue, the city projects the park’s reserve funds will be depleted within the next five years.”
That $3.6 million loss is simply the revenue less expenses, not including any debt payment on the property.
This is a park owned by the City of Novato itself. Someone offered the city $30 million for this deferred maintenance mess (which any idiot would take) and yet the city is holding out because of concerns that the new owner might raise the rent.
So if the park revenue does not even cover the expenses – and raising the rent is “evil” – then how will this park even exist 5 years from now? Clearly it won’t. In this case, it’s probably just the city finding an easy way out of having a mobile home park in their boundary, but it’s a further demonstration that all mobile home park lot rents need to go up – way up – for old parks to stay in business.