Saggio Hills sees 2011 completion

<p>The developers of Saggio Hills, the proposed luxury hotel and residential development on Healdsburg's northern fringe, say their project has been delayed another year because of drawn-out City Council hearings.</p><p>"We were hoping to deliver in 2010," developer Tony Korman said of the target date for completing the 130-room, five-star resort. But the date has been pushed back to mid-2011 now.</p><p>A tired Korman spoke to a reporter late Wednesday night, following the eighth lengthy City Council hearing on Saggio Hills since April and the second this week.</p><p>"It's another year with no park, no affordable housing and no TOT (transient occupancy tax) to the city," Korman said in reference to some of the benefits he and his business partner Robert Green have promised as part of the project.</p><p>In addition to the new resort more than doubling the city's bed tax revenues, developers of Saggio Hills also propose to include a 36-acre community park and a 14-acre affordable housing site.</p><p>But Vice Mayor Jim Wood countered that it is more important to take the time to ensure Saggio Hills is "best for everyone.</p><p>"If it's taking longer than the developer would like, it's taking longer. We have a duty to look at it under a microscope," he said.</p><p>Wood noted that the approval of Saggio Hills by the City Council is not a given. "We could say 'no.' It takes only one of us to say 'no,' " he said.</p><p>Because two council members have potential conflicts of interest, only three council members are voting on Saggio Hills. A 3-0 vote is needed for approval.</p><p>"I oscillate back and forth between, 'Is this the right thing to do, or isn't it?' It's a very challenging decision," Wood said.</p><p>The luxury hotel rooms are projected to cost $730 a night. Developers also plan 70 multimillion-dollar homes. Some are expected to be rented as vacation homes, in which case the city would collect bed taxes. Overall bed taxes from Saggio Hills are estimated to be at least $2.9 million annually.</p><p>But there are many details to be resolved before the project gets approval from the City Council. The project would require 259 acres -- the largest undeveloped chunk of land in Healdsburg -- to be annexed.</p><p>Councilman Mike McGuire said he wants assurances that Saggio Hills will achieve a "silver" Leadership in Energy and Environmental Design certification, which would apparently make it the first hotel in the world to attain such a high environmental ranking.</p><p>Council members want the developers to produce a detailed check list of all the environmentally friendly features, including design, construction and significant water conservation measures.</p><p>The developers said they plan to produce more of that detail at council meetings set for Aug. 6 and Aug. 20.</p><p>Critics of Saggio Hills continue to seek a reduction in the number of planned homes and question whether the city can handle the growth.</p><p>In particular, they say dry conditions and the likelihood that there will be more drought-like years make water supplies too unpredictable. But city officials say Healdsburg has more than enough water available to accommodate Saggio Hills and projected growth.</p><p>Public Works Director Mike Kirn said Healdsburg uses 2,834 acre-feet per year, but has an available water supply of 3,665 acre-feet annually from the Russian River and Dry Creek wells. Saggio Hills will use 215 acre-feet, according to Kirn.</p><p>Critics also question whether it makes sense to build a tourist resort that contributes to global warming because it requires people to travel there by car and airplane.</p><p>"It's irony to me to say 'let's build a sustainable development in wildlands,' " said Healdsburg resident Merrilyn Joyce. "If we were truly dedicated to reducing our carbon footprint, we wouldn't be considering this project."</p><p>You can reach Staff Writer Clark Mason at 521-5214 or clark.mason@pressdemocrat.com</p>