Questions surround cancelled Healdsburg meeting on luxury development

A closed-door session of the Healdsburg City Council that was canceled at the last minute has generated more questions about the status of Saggio Hills, the planned housing and luxury hotel development at the north edge of town.

The meeting, described as a conference with a property negotiator, was scheduled for last Monday, then canceled because "it was a little too premature," according to Mayor Susan Jones.

The terse agenda item mentioned Saggio Hills and the owner, Sonoma Luxury Resorts LLC, as the "negotiating party." Under "agency negotiator" were listed City Manager Marjie Pettus and Assistant City Manager David Mickaelian.

Under negotiation, it said, were "price and terms of payment."

City officials have declined to say what is under negotiation, downplaying the significance of the matter.

But the $310 million resort hotel and luxury home development has been stalled since it was approved more than four years ago by the City Council, leading to questions of when, and whether, it will be built.

"The secrecy thing is a problem," said Warren Watkins, head of Healdsburg Citizens for Sustainable Solutions, which filed a lawsuit in 2008 challenging the environmental study for Saggio Hills.

He questioned why the special City Council meeting was scheduled behind closed doors, but said he was "stonewalled" by City Manager Pettus.

"Why is it secret unless it's in trouble, there are problems with the project, or a new partner is involved?" he said.

Pettus declined to shed any light on the reason for the meeting.

"There isn't anything I can say to you about the closed session item, other than I can tell you we're not looking to acquire any part of Saggio Hills, or looking to change Saggio Hills."

She said developer Robert S. Green remains committed to the project.

"Warren Watkins keeps trying to stir things up. He's looking for drama where none exists," she said. "It's much ado about nothing."

"I know people are interested," Pettus said. "When there's something to talk about, it will be very public."

Closed-door sessions are common for both city and county governments in California and are governed by the state's Brown Act. Typically they are held for employee bargaining and litigation matters.

"The Brown Act allows us to have closed sessions on real estate so there isn't speculation and newspaper guys putting out, 'This is what it is all about and what they are doing,' " City Councilman Gary Plass said.

On a more serious note, Plass added that he did not know what the Saggio Hills item entailed. He was out of town and supposed to participate by phone in the special meeting before it was canceled.

"I don't think it was anything earth-shaking," he said.

"We weren't given specifics on why the meeting was called," Vice Mayor Jim Wood said. "Honestly, I really don't know."

Watkins argued that because of the public benefits promised by the developer -- including a 38-acre community park and a 14-acre affordable housing site -- the public has a right to know more.

"They have to start telling people what's going on," he said.

He says he fears the city will not get the public amenities that were promised and Healdsburg will be left with "scarred land" and cut trees from an unfinished project.

Developer Green said in a letter to the city in March that financing remains elusive for the 130-room resort and 70 custom-built homes. But he noted that his company owns the 259 acres of land outright and is not at risk of losing the property.

He did not immediately respond to requests for comment Friday.

You can reach Staff Writer Clark Mason at 521-5214 or clark.mason@pressdemocrat.com.

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