A San Francisco-based developer and lobbyist has dropped plans to buy Konocti Harbor Resort and Spa in Lake County and add a casino.

"We're no longer involved in that," Darius Anderson, of Kenwood Investments, said Monday.

He would not elaborate.

Lake County supervisors had vigorously opposed his plan to build a casino at the resort, saying it would increase traffic in the area to an unacceptable level.

Anderson recently told NorthBay Biz magazine it was not feasible to operate the resort without a casino.

Lake County Supervisor Ed Robey said he's pleased the casino plan has been dropped.

"It was the right thing to do," he said.

The county has three Indian casinos and at least one other is in the works, Robey said.

The supervisors had lauded the other changes Anderson planned, including expanding the hotel and increasing the capacity at the resort's outdoor concert venue.

The San Francisco-based plumbers union, which owns the 100-acre resort, has never acknowledged the proposed sale or other sales rumored to be pending over the past several years.

A sale of the resort is seen as a way to resolve a lawsuit filed by the U.S. Labor Department against the union in late 2004.

The lawsuit alleges the union mishandled members' benefit plans by diverting an estimated $36 million into renovating and operating the Kelseyville resort.

Labor officials and the union's attorney, James Baker, said Monday that a tentative agreement has been reached. But Baker said he cannot comment until the settlement is finalized, possibly later this month.

The Konocti resort is set in a cove on the south side of Clear Lake. For decades, it served as a family getaway, offering boating, swimming, tennis and fishing.

More recently, it has become a music venue, with a 5,000-seat outdoor amphitheater and a 1,000-seat indoor concert hall that attracts major acts.

You can reach Staff Writer Glenda Anderson at 462-6473 or glenda.anderson@pressdemocrat.com.