Sonoma County announces completed sale of Chanate property

Following years of failed attempts to offload its Chanate Road property in northeast Santa Rosa, Sonoma County, on Thursday, completed the sale of its 72-acre site to Las Vegas-based developer Iyad “Eddie” Haddad.

The county announced the successful sale Thursday afternoon.

“It’s a sense of relief to have finally completed the sale of this property,” Lynda Hopkins, chair of the county Board of Supervisors, said in a news release. “We believe that we have secured the best deal possible for Sonoma County taxpayers, and while we do not have control over future development, we do hope to see this property used to address Sonoma County’s housing shortage.”

The completed sale means the county is no longer responsible for the site’s future. Instead, oversight will fall to the city of Santa Rosa.

Haddad placed a successful $15.05 million bid on the property during an online auction on Nov. 9.

“We can now return this asset to productive use and place the property on the tax rolls,” Supervisor Chris Coursey said in the release. “We can’t direct what will happen here after the sale, but my hope is for responsible development that responds to the greatest needs of our community, including affordable housing that will continue the Chanate property’s role as an asset to the community.”

According to the release, Haddad used a newly formed LLC, Chanate Development Group, to complete the sale, that is different from the LLC, Resources Group, he used to bid on the property.

Chanate Development Group is registered in Nevada and is managed by a third Nevada-based LLC Haddad manages, according to a search of LLCs via the Nevada Secretary of State’s website.

In order to bid on the property, prospective buyers had to submit proof of funds and agree to terms of the property sale, but did not have to disclose what their plans were for the site.

The Chanate campus is comprised of an abandoned hospital and several county buildings, including the existing morgue, and will require millions of dollars in demolition and cleanup. An earthquake fault also runs underneath the property.

Under the terms, Haddad agreed to an all-cash sale, as-is, without entitlements, with all structures and property conveyed at closing, and all costs for demolition falling to the buyer, according to the release.

Additional terms included an affordable housing covenant, an agreement to allow access to the historic cemetery, the assumption of the Sloan House lease and the Bird Rescue license agreements, and an agreement to lease the current Public Health Lab and Morgue and Coroner’s Office for four years with two six-month options to extend, the release said.

On Nov. 16 the county Board of Supervisors voted unanimously to accept the bid, moving the property into escrow.

While the county verified Haddad’s finances, supervisors and county officials have said they did not look into Haddad’s background.

A Press Democrat investigation into Haddad found he has a history of complaints from tenants, many of which have been affirmed by court judgments against him in the past two years, as well as state sanctions and criminal charges over his real estate dealings.

In interviews with The Press Democrat, Haddad defended his record, pushed back against the tenant allegations and reaffirmed his commitment to working with local leaders and citizens to redevelop the Chanate campus in Santa Rosa.

“We have an excellent track record,” Haddad said during one such interview. “Customer service is key. We go out there and take care of issues.”

You can reach Staff Writer Emma Murphy at 707-521-5228 or emma.murphy@pressdemocrat.com. On Twitter @MurphReports.