TO: Board of Supervisors
FROM: David Morrison - Director Planning, Building and Environmental Services
REPORT BY: Brian Bordona - Deputy Director - 259-5935
SUBJECT: Discussion of Proposed Terms of a Development Agreement for the Meadowood Rehabilitation Project (Use Permit Modification/Development Plan #P21-00120)
RECOMMENDATION
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SET MATTER 11:00 AM - 1 Hour
Director of Planning, Building and Environmental Services and County Counsel request that the Board take public comment and provide direction to staff on the proposed terms of a Development Agreement between the County and Meadowood Associates, a California Limited Partnership (together with its wholly owned subsidiary Meadowood Resort, LLC, a Delaware corporation) (hereafter referred to as Meadowood or the Applicant) for the purpose of rehabilitating the Meadowood Napa Valley resort and club (Meadowood Resort), which was substantially damaged and destroyed in the 2020 Glass Fire. The Development Agreement is being processed concurrently with the Applicant's pending request to modify Meadowood’s Use Permit and request to approve a related Development Plan. The Meadowood Resort is located at 900 Meadowood Lane, St. Helena, California. The Napa Valley Reserve is located at 1030 Silverado Trail, St. Helena, California. The Meadowood Estate includes eleven contiguous legal parcels (Assessor’s Parcel Numbers 025-080-032, -033, -034, -035, and -036 (Meadowood Resort) and, 025-110-049, -050, -064, -065, and -066 and 025-120-007 (The Napa Valley Reserve).
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EXECUTIVE SUMMARY
The Applicant has proposed certain material terms and conditions to be included in a Development Agreement
which would be processed concurrently with the Applicant’s pending Use Permit Modification and Development Plan. The Development Agreement, if approved, would guide development at Meadowood Resort and provide certain assurances to the Applicant while also providing a streamlined process for the resort to return to full operation.
Procedural Requirements:
1. Staff report.
2. Applicant presentation.
3. Public comments.
4. Close public comments.
5. Board provides direction to staff on the material terms and conditions to be included in the Development Agreement.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
N/A |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
N/A |
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Is the general fund affected? |
No |
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Future fiscal impact: |
All staff time will be reimbursed by the Applicant. |
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Consequences if not approved: |
It could potentially take longer for Meadowood Resort to be rebuilt and return to full operation. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL DETERMINATION: The proposed action to provide staff direction is not a project as defined by 14 California Code of Regulations 15378 (State California Environmental Quality Act (CEQA) Guidelines) and therefore CEQA is not applicable. The Development Agreement along with the Use Permit Modification/Development Plan will be evaluated under CEQA prior to its being considered for final action.
BACKGROUND AND DISCUSSION
The Meadowood Resort is located at 900 Meadowood Lane, St. Helena, California. The Napa Valley Reserve, a membership-only vineyard and winery is located at 1030 Silverado Trail, St. Helena, California. Eleven contiguous legal parcels comprise the Meadowood Estate, including both the Resort and the Reserve. The Meadowood Resort is located in the Planned Development (PD) zoning district and the Napa Valley Reserve is located in the Agricultural Watershed (AW) zoning district. The Meadowood Estate is designated Agricultural, Watershed and Open Space in the County’s General Plan Land Use Map.
On September 28, 2020, the Glass Fire caused significant damage and destruction to many of the structures and facilities at the iconic Meadowood Resort property forcing the immediate and indefinite closure of all uses at the resort. Over the last ten months, the Applicant has focused efforts on designing a conceptual development plan to replace, restore and renovate the facilities destroyed or damaged by the Glass Fire. The Applicant has proposed a Development Agreement to guide redevelopment and rehabilitation of Meadowood Resort in phases under a development plan that (if approved by the County) would allow structures and facilities within the scope of the approved development plan to obtain permits on an expedited basis. The Agreement would also allow the temporary relocation of certain resort uses lost to the Glass Fire to occur at the Napa Valley Reserve for up to five years while rehabilitation of the Meadowood Resort occurs. Those temporary alternative uses at the Napa Valley Reserve are currently allowed under the fire relief measures provided in Napa County Policy Manual Policy 12B most recently adopted by Board of Supervisors Resolution No. 2021-16. Per County Policy 12B, temporary alternative uses are required to cease within 24 months after the declaration of disaster has terminated.
County Code Section 18.48.060 (A) provides that projects located in the PD zoning district require submittal of a use permit application accompanied by a development plan. On August 17, 2021, the Applicant submitted a request for approval of a Use Permit (Modification #P21-00120) accompanied by a conceptual Development Plan (dated August 16, 2021) and a request for the County to enter into a Development Agreement. The Applicant does not seek to expand the intensity of the uses allowed or developed at Meadowood Resort prior to the Glass Fire, the rehabilitation will include larger and reconfigured buildings of no more than 25% of the total aggregate area of approved pre-Glass Fire structure so as to incorporate the highest standards of fire-safe construction, comply with the 2021 State Minimum Fire Safe Regulations (pending before the State Board of Forestry) for access, and to meet current and future trends in hospitality.
Development Agreement
Development Agreements are authorized by state law (Govt. Code Section 65864 et seq.). The purpose of a Development Agreement in this case would be to provide the Applicant with a streamlined process that will provide for timing and phasing of the replacement structures, re-opening of Meadowood Resort in phases and return of Transient Occupancy Tax (TOT) as lodging units come back online. Prior to the Glass Fire, in 2019 Meadowood Resort generated over $3,000,000 in annual TOT revenue to the County. The Agreement will also give the Applicant a vested right to develop the project for 20 years in accordance with the applicable County laws and entitlements in effect at the time of project approval. A summary of the material terms and conditions (Attachment A) include the following:
1) Conformance with the updated 2021 Board of Forestry’s State Minimum Fire Safe Regulations, which includes the widening and extending of historic access roads for CalFire engine access, as well as a secondary emergency evacuation route that can be used during an emergency.
2) Construction of fire safe buildings and increase of defensible space across the Meadowood property, which would help protect the adjacent Madrone Knoll neighborhood and other surrounding residential properties.
3) The construction of a new, state-of-the-art wastewater treatment system for all uses on the Meadowood property and Madrone Knoll, which will include an upgrade from secondary treatment to tertiary treatment of wastewater capable for irrigation use, furthering water conservation efforts by Meadowood Resort.
4) The allowance of temporary relocated uses and functions of the Meadowood Resort to the Napa Valley Reserve property for a period of five years while redevelopment of the Meadowood Resort occurs.
5) A streamlined process for the County’s review of subsequent approvals of permits for structures that are located within the scope of the approved Development Plan which will govern redevelopment and reconstruction of the Meadowood Resort.
CONCLUSION:
Staff is requesting direction on the above terms of the proposed Development Agreement. This action does not obligate the Board to approve the Development Agreement. Upon receipt of Board direction, staff will prepare a draft Development Agreement which will be processed concurrently with the pending Use Permit Modification/Development Plan. The Development Agreement and the Use Permit Modification/Development Plan will be considered by the Planning Commission, which will make its recommendation to the Board of Supervisors. It is expected that the Planning Commission would consider the proposals in October/November 2021, with the Board of Supervisors making the decision in December 2021/January 2022. Notice to the public of the future hearings before the Planning Commission and the Board of Supervisors will be provided in advance of the meetings.
SUPPORTING DOCUMENTS
Attachment A -Proposed Term Sheet