Healdsburg OKs Saggio project

<p>Saggio Hills, the luxury resort hotel and residential project proposed on Healdsburg's northern edge, cleared its last critical City Council hurdle Wednesday, culminating a yearlong series of public meetings that tested the stamina of city officials and the developers.</p><p>On a 3-0 vote, the City Council approved the agreement that spells out what developers will provide to the city in exchange for being able to build the 130-room deluxe hotel and 70 multimillion-dollar homes.</p><p>The developers shook hands and were hugged by supporters after the council vote, but their relief at getting the project approved was tempered by an opponent's vow to file a lawsuit within a week challenging the environmental impact report for Saggio Hills.</p><p>"There's going to be a CEQA (California Environmental Quality Act) lawsuit," said Warren Watkins, head of Healdsburg Citizens for Sustainable Solutions, which wants to reduce the number of houses, or what Watkins described as "mega mansions" that are part of Saggio Hills.</p><p>"It's extremely unfortunate, extremely disappointing," developer Robert Green said when informed of the impending legal challenge. "I hope people will realize what they're losing because of his efforts."</p><p>Watkins, a retired math teacher, said the lawsuit is bolstered by an anonymous donor's "five-figure" matching pledge and dozens of other contributors who will finance the legal effort through the appeals stage.</p><p>Watkins has not objected to the 130-room, five-star resort, which is projected to generate close to $3 million in bed taxes for the city by mid-2013. Instead, he has focused on lowering the number of homes on the property, and said the city has not adequately considered impacts to traffic and water supply.</p><p>But City Council members said the exhaustive hearing process that began a year ago with a dozen Planning Commission meetings, followed by 14 City Council hearings, has made Saggio Hills a much better project and taken into account many of the suggestions of critics.</p><p>"This will provide sustainable income for 50 to 100 years," said Councilman Gary Plass.</p><p>Two council members recused themselves from the public hearings due to potential conflicts of interest, so only Plass and councilmen Mike McGuire and Jim Wood voted on the project. Approval had to be 3-0 for the project to proceed.</p><p>McGuire, who has been a stickler in demanding a number of concessions from the developers, said Wednesday the project "will bring a balance for both work to families as well as generating necessary revenue to keep the (local) economy healthy."</p><p>He noted that Healdsburg 20 years ago made a commitment to move forward with hospitality-driven projects and to not rely on tax dollars from "big box" stores and development fees.</p><p>McGuire listed numerous benefits Saggio Hills will bring, as well as some of the compromises made to deal with critics.</p><p>Developers agreed to provide 36 acres for a community park, build a new fire substation and donate and grade 14 acres for an affordable housing site.</p><p>There will also be a network of public hiking trails.</p><p>And developers are kicking in an additional $3 million toward park amenities and $1 million to help build the affordable housing.</p><p>McGuire noted that the financially struggling school district will benefit from an additional $2.5 million annually from Saggio Hills.</p><p>The final hurdle for the project Wednesday was McGuire's insistence on more detailed language that ensures local residents are given preference when it comes to hiring and construction jobs.</p><p>The developers agreed to use "commercially reasonable efforts" to employ qualified Healdsburg contractors and subcontractors to build the project. Qualified residents will also be given first crack at jobs at the resort and hotel.</p><p>In response to a question from McGuire about the "absolute meltdown in the market and the economy," developers Wednesday assured the council they have the money needed to build Saggio Hills.</p><p>"Our capital is all private equity. We are not dependent on Wall Street for capital," Green said. "The capital is all in place."</p><p>Developers hope to move forward in April, after they obtain approvals for design and road modifications and approval to annex the land from the Sonoma County Local Agency Formation Commission.</p><p>Their timetable calls for opening the hotel resort in 2011 and building the 70 homes over a five-year period through 2014.</p><p>You can reach Staff Writer Clark Mason at 521-5214 or clark.mason@pressdemocrat.</p><p>com.</p>