TO: Board of Supervisors
FROM: David Morrison - Director Planning, Building and Environmental Services
REPORT BY: Sean Trippi - Supervising Planner
SUBJECT: Meadowood Napa Valley - Use Permit Minor Modification and Ordinance Approving a Development Agreement (1st reading)
RECOMMENDATION
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PUBLIC HEARING 10:00 AM
MEADOWOOD RESORT, LLC, MEADOWOOD ASSOCIATES, A LIMITED PARTNERSHIP & HMS VINEYARDS LLC, A CALIFORNIA LIMITED LIABILITY COMPANY / MEADOWOOD NAPA VALLEY REHABILITION PROJECT / USE PERMIT MINOR MODIFICATION NO. P21-00211-MOD & DEVELOPMENT AGREEMENT
(1) First reading and intention to adopt an Ordinance approving the Development Agreement between Meadowood Resort, LLC, Meadowood Associates, a Limited Partnership, HMS Vineyards, LLC a Limited Liability Partnership, and Napa County; (2) Consider the Planning Commission's recommendations to approve the Meadowood Napa Valley Rehabilitation Project Use Permit Minor Modification No. P21-00211-MOD and the conditions of approval; (3) Find the project Statutorily and Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to a statutory exemption to repair, restore, demolish, or replace property or facilities damaged by a disaster (Public Resources Code § 21080(b)(3)); an exemption for a project that is consistent with a Community Plan, General Plan, or Zoning Code (CEQA Guidelines § 15183); and categorical exemptions for Class 1 (Existing Facilities), Class 2 (Replacement or Reconstruction of Existing Structures of Facilities), and Class 3 (Construction of New Small Facilities or Structures) types of projects (CEQA Guidelines §§ 15301, 15302 & 15303); and an exemption under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, otherwise known as the “Common Sense Exemption” (CEQA Guidelines § 15061(b)(3)). It has been determined that this type of project does not have a significant effect on the environment and is exempt from CEQA under the aforementioned exemptions pursuant to Napa County’s Local Procedures for Implementing CEQA and the CEQA Guidelines; and (4) Approve the Meadowood Napa Valley Rehabilitation Project Use Permit Minor Modification No. P21-00211-MOD subject to the recommended conditions of approval.
The project consists of the rebuilding and rehabilitating of Meadowood Napa Valley and a Development Agreement. The project is generally located at 900 Meadowood Lane (Assessor Parcel Nos. 025-080-032, -033, -034, -035, and -036; “Resort Property”) and 1030 Silverado Trail, St. Helena, California (Assessor Parcel Nos. 025-110-049, -050, -064, -065, and -066 and 025-120-007; “NV Reserve Property” and together with the Resort Property, the “Property”). The Resort Property is within the Planned Development (PD) Zoning District and the NV Reserve Property is within the Agricultural Watershed Zoning District. The entirety of the Property is within the Agriculture, Watershed, and Open Space general plan designation.
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EXECUTIVE SUMMARY
The Applicant for the project and the Development Agreement consists of the three following entities: Meadowood Resort, LLC, Meadowood Associates, a Limited Partnership, HMS Vineyards, LLC a Limited Liability Partnership (hereafter referred to as the Applicant). All of these entities are applicants and parties to the Development Agreement.
The Applicant seeks to rebuild and rehabilitate Meadowood Napa Valley, a hotel-resort with food and beverage facilities, resort amenities, administration and back-of-house buildings and guest lodges, which suffered significant damage as a result of the 2020 Glass Fire. The Applicant is also proposing to enter into a Development Agreement with the County. 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 vested right to develop the project for a period of years in accordance with the applicable laws and entitlements in effect at the time of project approval. A summary of the material terms and conditions proposed by the Applicant and previously directed by the Board to be included in the Development Agreement are included in the Background Section, below.
On August 17, 2022 at a duly noticed public hearing, the Planning Commission considered the above-described proposals and unanimously recommended that the Board of Supervisors: (a) adopt the Statutory and Categorical Exemptions; (b) approve Use Permit Modification No. P21-00211-MOD subject to the Staff recommended conditions of approval; and, (c) adopt the proposed Ordinance approving the Development Agreement between Napa County and Meadowood Resort, LLC, Meadowood Associates, a Limited Partnership, and HMS Vineyards, LLC a Limited Liability Partnership.
PROCEDURAL REQUIREMENTS:
1. Open Public Hearing.
2. Staff report.
3. Public comments.
4. Close Public Hearing.
5. Motion, second, discussion and vote on intention to:
a) Find the project Statutorily and Categorically Exempt from the California Environmental Quality Act (CEQA) as set forth in the Staff Report;
b) Approve Use Permit Minor Modification No. P21-00211 based on Findings 1-3 of Attachment A and subject to the recommended conditions of approval (Attachment B); and
c) Adopt an Ordinance approving the Development Agreement (Attachment C).
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 |
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Additional Information |
Pursuant to Section 7 of the Development Agreement Ordinance, the Agreement must be recorded with the County Clerk within 10 days of adoption of the ordinance approving the Agreement. A summary of the ordinance approving the Agreement must be published at least 5 days before adoption and at least once before the expiration of 15 days after its passage. Second reading of the Ordinance is scheduled for September 27, 2022. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Consideration and possible adoption under the California Environmental Quality Act (CEQA) of a statutory exemption to repair, restore, demolish, or replace property or facilities damaged by a disaster (Public Resources Code § 21080(b)(3)); an exemption for a project that is consistent with a Community Plan, General Plan, or Zoning Code (CEQA Guidelines § 15183); and categorical exemptions for Class 1 (Existing Facilities), Class 2 (Replacement or Reconstruction of Existing Structures of Facilities), and Class 3 (Construction of New Small Facilities or Structures) types of projects (CEQA Guidelines §§ 15301, 15302 & 15303); and an exemption under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, otherwise known as the “Common Sense Exemption” (CEQA Guidelines § 15061(b)(3)). It has been determined that this type of project does not have a significant effect on the environment and is exempt from CEQA under the aforementioned exemptions pursuant to Napa County’s Local Procedures for Implementing CEQA and the CEQA Guidelines. This project is not on any lists of hazardous waste sites enumerated under Government Code Section 65962.5.
BACKGROUND AND DISCUSSION
Property History:
In 1961, Napa County approved rezoning a 268-acre site, a portion of which includes the Resort Property, to allow for residential development and country club use. In the same year, the County issued Use Permit U-51-61 to construct the county club and related facilities.
In 1981, the County approved Use Permit U-208081 (“1981 Use Permit”) for the then-named Meadowood Golf & Racquet Club to authorize the development and uses within an approximately 75-acre area. The County also approved a development agreement for the development of the facility (“1981 Development Agreement”). The 1981 Use Permit and 1981 Development Agreement authorized development of the Resort Property pursuant to a master development plan.
The County subsequently approved a series of modifications and amendments to the 1981 Use Permit and 1981 Development Agreement from 1981 to 1985, during which the resort and recreational facility operations on the Resort Property became known as “Meadowood Napa Valley” (“Meadowood”). From 1985 to 2004, the County approved or made a series of modifications, amendments, and determinations related to the 1981 Use Permit and 1981 Development Agreement, as amended.
Beginning in 2012, Meadowood made many significant upgrades and improvements to its facilities. In 2013, the County approved Use Permit Modification P12-00286 to improve the resort and recreational facilities, including expansions to the restaurant and grill, a spa, a wine and education center, pools, gym and reception areas, for a total approved development area of 150,000 square feet (sf). Between 2015 and 2019, the County approved modifications to the use permit for the development of a new spa building, pool area, and fitness center on the Resort Property, which increased the approved development area to approximately 154,000 sf.
At the time of the Glass Fire, Meadowood had entitlements for approximately 154,000 sf of conditioned building area and 106 guest bedrooms over a number of lodges.
The Glass Fire completely destroyed nine Guest Lodges encompassing 42 guest rooms, the clubhouse which served as the location for the 3-Star Michelin restaurant, the restaurant at Meadowood, the three-meal dining café, golf shop, locker room, banquet kitchens, event areas and meeting rooms, the tennis shop, and all back-of-house service areas.
The Glass Fire also caused significant damage to various facilities, infrastructure and surrounding environs, including the surrounding woodlands within the Resort Property (approximately 50 acres), landscaping, circulation areas, and electrical, water, gas and wastewater infrastructure.
Current Request:
The Applicant proposes to rebuild and rehabilitate Meadowood Napa Valley’s structures and facilities, including increasing the overall floor area from 154,000 sf to 192,500 sf, consisting of approximately 33,240 sf of floor area for food and beverage facilities; approximately 40,025 sf of floor area for resort amenities; approximately 30,260 sf of floor area for administrative and back-of-house facilities; approximately 88,975 sf of floor area for lodging with no increase to the number of the previously approved 106 guest units; parking for 350 vehicles; internal access roads; landscaping; and, associated infrastructure.
Pursuant to County Code Section 18.48.060 (A) the use permit modification application is accompanied by a development plan. The proposed Development Plan establishes the general description of buildings and uses including overall areas of existing, damaged and proposed conditioned spaces; provides concept plans, including conceptual site plans, floor plans, building height, renderings or elevations, building exterior materials plans, roadway plans, utility plans, parking plans, landscape plans, lighting plans, wildfire and emergency evacuation plans, storm water management plans, and conceptual phasing plans. The Development Plan also identifies area zoning regulations and development standards applicable to the Rehabilitation Project
The Rehabilitation Project would not change or expand the intensity of uses allowed or developed at Meadowood or increase the number of 106 overnight lodging rooms that existed prior to the Glass Fire; however, the Rehabilitation Project includes larger and reconfigured buildings to meet current and future trends in hospitality and to improve efficiency. The total aggregate area of approved pre-Glass Fire structure would be increased by up to but not more than 25% including the food and beverage facilities, resort amenities, administration and back-of-house buildings, and guest lodges.
The Applicant is also proposing to enter into a Development Agreement with the County. Development Agreements are authorized by state law (Govt. Code Section 65864 et seq.). The Development Agreement would guide redevelopment and rehabilitation of the Meadowood Resort in phases under the proposed 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 Development Agreement will eliminate uncertainty in the County’s land use planning process and secure orderly development of the project consistent with the approval of the project by the County, assure progressive and timely installation of necessary improvements, and otherwise achieve the goals and purposes for which the Development Agreement Statute was enacted. It will also establish consistently applied specific development criteria that will be applicable to the Property in accordance with sound planning principles. The Development Agreement defines the rights and obligations of all parties. The purpose of a Development Agreement in this case would be to provide the Applicant with a vested right to develop the project for a period of 20 years in accordance with the applicable laws and entitlements in effect at the time of project approval. In exchange, the project would include both public benefits provided by the project in accordance with the project approvals and public benefits in excess of those which could be expected from the project in absence of this Agreement.
Following is a brief summary of public benefits (see Section 12 of the Development Agreement for additional details):
- Conformance with the updated 2021 State Minimum Fire Safe Regulations (or as may be amended), including improving internal access roads.
- The return of one of Napa County’s largest employers and local revenue generators.
- The anticipated return of County Transient Occupancy Tax payments annually
- An improved community gathering space for non-profit fundraisers and other community events.
- The construction of a new, state-of-the-art wastewater treatment system for all uses on the Meadowood Estate and Madrone Knoll, which will include an upgrade from secondary treatment to tertiary treatment of wastewater capable for irrigation use and will implement water conservation and efficiency measures to reduce the use of water.
The Development 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. The Development Agreement would allow these temporary uses to remain longer and allow the Applicant to permanently retain the improvements if the Applicant can demonstrate the improvements are consistent with applicable regulations.
Procedural History:
On September 14, 2021, the Board of Supervisors held a public hearing regarding the proposed terms of a Development Agreement with the Applicant. The Board considered Staff, Applicant and public comments and thereafter directed Staff to negotiate with the Applicant and prepare a Development Agreement consistent with the terms and conditions described herein.
On August 17, 2022, the Planning Commission held a public hearing on the proposed project and Development Agreement and unanimously recommended that the Board of Supervisors take the following actions: (1) adopt the Statutory and Categorical Exemptions; (2) approve Use Permit Modification No. P21-00211-MOD subject to the Staff recommended conditions of approval; and, (3) adopt the proposed Ordinance approving the Development Agreement between Napa County and Meadowood Resort, LLC, Meadowood Associates, a Limited Liability Partnership, and HMS Vineyards, LLC. View the August 17, 2022 Planning Commission staff report, via the following link:
http://napa.legistar.com/gateway.aspx?m=l&id=/matter.aspx?key=5365
Where the Board of Supervisors is the decision maker on any companion action to a use permit or use permit modification (i.e. a proposed Development Agreement), the Commission makes a recommendation to the Board of Supervisors pursuant to County Code Section 18.124.010 to approve or disapprove the entire action. The Board thereafter makes the final decision on the entire action, including any determination to be made under the California Environmental Quality Act (CEQA). The Development Agreement is executed through the adoption of an ordinance by the Board of Supervisors. As prescribed by County Code and State law, before the Board of Supervisors can act on the request, they must consider the recommendation of the Planning Commission.
Actions Before the Board:
The Board is being asked to take the following actions:
1. Find the project Statutorily and Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to a statutory exemption to repair, restore, demolish, or replace property or facilities damaged by a disaster (Public Resources Code § 21080(b)(3)); an exemption for a project that is consistent with a Community Plan, General Plan, or Zoning Code (CEQA Guidelines § 15183); and categorical exemptions for Class 1 (Existing Facilities), Class 2 (Replacement or Reconstruction of Existing Structures of Facilities), and Class 3 (Construction of New Small Facilities or Structures) types of projects (CEQA Guidelines §§ 15301, 15302 & 15303); and an exemption under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, otherwise known as the “Common Sense Exemption” (CEQA Guidelines § 15061(b)(3)). It has been determined that this type of project does not have a significant effect on the environment and is exempt from CEQA under the aforementioned exemptions pursuant to Napa County’s Local Procedures for Implementing CEQA and the CEQA Guidelines;
2. Approve Use Permit Minor Modification No. P21-00211 based on Findings 1-3 of Attachment A and subject to the recommended conditions of approval (Attachment B); and
3. Adopt an Ordinance approving the Development Agreement (Attachment C).
Staff recommends approval of the Statutory and Categorical Exemptions, Use Permit Minor Modification as conditioned, and adoption of the Ordinance approving the Development Agreement.
SUPPORTING DOCUMENTS
A. Recommended Findings
B. Recommended Conditions of Approval & Agency Memos
C. Development Agreement Ordinance
D. Development Agreement