MIDDLETOWN, Calif. – During the Middletown Area Town Hall’s monthly meeting last week community members received an update on plans for a major new resort development in the south county.
Community Development Director Bob Massarelli presented a status update on the Guenoc Valley project to the Middletown Area Town Hall on Thursday night. The discussion begins at the 34:38 minute mark in the video above.
The project will be built across thousands of acres outside of Middletown that encompass the Langtry Farms property and the Guenoc Valley, an area that the Middletown Area Plan anticipated would eventually play host to resort, residential and agritourism uses.
While there are few specific details about what the project ultimately will entail, during his Thursday update Massarelli offered the following description: “The project currently is expected to be a high-end, low-density development consisting of boutique-style hotels, space, sporting facilitates, town centers, cultural facilities and residential components.”
Massarelli said the project’s applicant is Lotusland Investment Holdings Inc. of San Francisco.
Lotusland is led by Chairman Yiming Xu and his son, Alex Xu, the corporation’s secretary and treasurer. Alex Xu and several other members of the development team were in the audience at the Thursday presentation.
Late last year, the Xus formed Guenoc Valley Inc., according to California Secretary of State’s Office records.
Guenoc Valley Inc. is listed in Lake County Assessor-Recorder’s Office records as the owner of seven parcels totaling 6,708.2 acres near Middletown, including the heart of the Langtry Farms property.
The total size of the Guenoc Valley project has been estimated to be between 14,000 acres, based on Massarelli’s statements Thursday, and as large as 23,000 acres, according to statements made at a meeting the developer held with community leaders at Langtry Farms on April 28.
At a community open house on April 29, the Xus presented a check for $1 million to Hope City to assist with the fire rebuilding effort as a sign of their commitment to the south county, as Lake County News has reported.
Massarelli, who said he has been meeting with the project developer, plans to offer updates to MATH on a monthly basis, as he said it is very important to him to get input from the community on the proposal.
“This project has a tremendous amount of potential for the Middletown area, the south county area and, in fact, the entire county,” he said.
Massarelli told the group that he did not yet have detailed information about the plans at the property, as no application or maps have yet been filed by the developer. However, he said he could talk about the high-level concepts proposed and the path forward.
He said the process includes two major players, the county of Lake and the applicant.
The county, Massarelli explained, is responsible for development permits, necessary amendments to the general and area plan, rezoning, a master plan of development for the entire project and the use permit.
Running parallel to that series of actions is the development of the project’s environmental impact report, Massarelli said.
“Because of the scale of this project we're going straight to a full environmental impact report,” he said.
Massarelli said the county and the developer have “distinct roles in the process,” with the EIR to be completed under the supervision of the county while the developer works on the master plan.
He said pursuing the parallel processes is a unique approach. Massarelli said the goal is that the EIR will influence and guide the master plan, while the master plan will give input into the EIR process.
There will be a full public hearing process that includes Lake County Planning Commission and Board of Supervisors meetings, he said.
In offering an overview of the project – which he said is very large-scale – Massarelli said it encompasses the Guenoc-Langtry area, which is about 14,000 acres. He said he was not sure if the developer owned all of the land yet.
For scale, Massarelli said Walt Disney World is 35 square miles, and the Guenoc Valley project is 25 square miles.
“That's the scale that we're talking about,” he said, adding, “It’s a very unique opportunity to work with such a large scale project.”
Massarelli said the county has entered into an “at-cost” agreement with the developer, who will pay for the costs of the EIR and for the staff working on the project. Last month, the Board of Supervisors approved hiring two additional planning staffers at Massarelli’s request.
Massarelli said the special area study will consider numerous aspects of the project, including expanded agricultural operations with a focus on ag-based tourism and a diversified crop base; continued ranchland operations, including development of equestrian activities; long-term protection of the property’s significant resource value; expansion of wine production operations; the existing golf course, which he said will need some rehabilitation, and outdoor recreational activities; and expansion of visitor accommodations at the site, including the migration toward a resort commercial use.
Also to be considered are residential uses that will support the full range of proposed uses, with Massarelli explaining that people will be able to live close to where they work, which is positive from the standpoint of sustainability and carbon footprint.
Other aspects of the special area study will be a boutique hotel, high-end resort and retreat center, bed and breakfast inns, walkable communities, creation of a community identity, preservation of open space and ag land, a range of housing prices (from housing that’s affordable for workers to multimillion dollar mansions), compact building design, opportunities for hunting and fishing, creation of trail linkages and implementing special recreational events.
Regarding the path forward, Massarelli said the first step is getting the EIR started. He said the Board of Supervisors authorized him to put out a request for proposals for a consultant to complete the EIR, a process that’s expected to take about 18 months.
He said the county will look for consultants with experience completing EIRs for large-scale resort-type projects.
After the consultant is selected, Massarelli said there will be a public scoping meeting during which the consultant will collect information and take input from the community ahead of beginning the numerous studies that are part of the overall report.
Massarelli said he expects the developer to have one or two specific area plans completed very soon, and for there to be public workshops on those plans.
He said he believes the work on the project’s “entitlements” – including the general plan amendments, rezoning, master plan and use permit – should begin within six months.
Massarelli said the county currently is working on a Web site on the project, where people can find information and updates.
He said his goal is offering the regular updates to MATH is to prevent bad information being generated by the “rumor mill,” adding that his goal is “full transparency.”
During a question and answer period, Massarelli was asked about whether the Middletown Rancheria will have input. He said yes, that studying cultural resources is a key part of the process.
He also explained that the developer has already had to pay the county a $60,000 deposit for the EIR and two new staffers to be hired. Once the project application is formally submitted, the developer’s deposit will be raised to $100,000. When the EIR consultant contract is signed, the deposit rises to $250,000.
When asked about the issues with allowing the developer to pay for the EIR, Massarelli emphasized that it’s an “arm’s length transaction,” adding, “They’re paying but we’re controlling.”
There also were questions about whether the development would be members only – Massarelli said that so far he had received no information on that – and if they would respect the local tribal culture.
Massarelli said the developer is extremely respectful of culture, and in a video shown to local leaders by the developer at an April 28 gathering had showed one of his previous projects that included a museum.
He said the developer is working with Aman Resorts – an international luxury resort company – on a resort concept, with both companies having experience working with other cultures.
Aman Resorts has more than 30 resort properties worldwide, primarily in Asia, Europe and Africa. The company has two resorts in the United States – in Jackson Hole, Wyo., where nightly rates run between $800 and $1,350, and Canyon Point, Utah, where rooms range from $1,800 and $3,000 per night, according to the company’s Web site.
“They love this piece of property because of the natural beauty and they do not want to do anything to destroy this property because of the natural beauty,” Massarelli said, adding there have been “no red flags” so far.
Other questions that Massarelli fielded that so far don’t have answers include transportation issues – such as the need for better roads to host an influx of visitors and residents and whether or not there will be an airport. He said the issue of roads will be addressed in the EIR’s transportation study portion; he wasn’t sure if an airport will be included.
Randy Sternberg, who said he is Guenoc Ranch’s manager, also was on hand for the discussion.
Sternberg, who has lived on the ranch since 1981, said he has been asked to give monthly updates on the project.
“I feel really good about this project,” Sternberg said, explaining that it will have a small overall footprint and low density.
He said the Langtry wine label operation remains the same, and agriculture will remain a part of what takes place on the property.
Community members at the meeting raised concerns about fires and access to the property.
MATH Chair Claude Brown, who said he has been at some of the preapplication meetings, reported that Cal Fire has been a part of the process so far and has made it clear that access-related issues are critical.
“Cal Fire has a very big stake in the process,” Brown said.
Massarelli added that Caltrans also has been at the meetings as one of the stakeholder agencies.
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Middletown Area Town Hall hears update on Guenoc Valley project
- Elizabeth Larson
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