SVCAC doesn’t look fondly on proposed resort at Los Arroyos Golf Course

The Sonoma Valley Citizens Advisory Commission (SVCAC) voted 9-2 against recommending a proposed fractionalized ownership resort project that would replace the Los Arroyos Golf Course.
Commissioners mentioned concern about the density of the project and whether it would be compatible with the surrounding area. There were also a lot of questions about whether fractionalized ownership would be a good ownership structure as opposed to a hotel.
“It’s pretty unusual for there to be a two-hour discussion, when there are only three people in the audience,” said Garry Baker, chairman of the commission. “We really talked about it.”
The 58-acre site at the corner of Hwy. 116 and Watmaugh Road is currently home to Los Arroyos Golf Course, a 9-hole public golf course and clubhouse. The golf course has had problems with its well, and property owner Tim Wilkens claims in the paperwork filed with the county that the current wastewater treatment system needs to be upgraded, even just to support the current facilities. However, the upgrade is so costly, the golf course use is not intensive enough to support it.
The new Sonoma Vineyard Estates proposal includes 52 detached units, which would have fractionalized ownership. When owners weren’t using them, they would likely be rented out at a nightly rate. The design also includes a 9,300 sq. ft. clubhouse for exclusive use of owners and a swimming pool. Wyndham Vacation Homes would manage the resort.
In order for the proposed project to move ahead, the supervisors would have to amend the Sonoma County General Plan and rezone part of the 57-acre property to K (Recreation and Visitor-serving Commercial use).
Staff at the Permits and Resource Management Department (PRMD) have been reviewing the project to prepare a staff report for the Sonoma County Planning Commission. Denise Peter, Planner III for the county, said she sees the project as precedent-setting. “It’s an important case,” she said, “because there are benefits and there are pros and cons to it. It’s a very, very complex project.”
Currently, staff is recommending “summary denial” of the project to the planning commission because it has too many inconsistencies with the general plan, among other concerns. One key issue is that the resort includes both a packaged sewage treatment plant and fractional ownership, a combination that the county has a policy of avoiding. The county is trying to avoid a future instance in which it might become responsible for the plant. It also has a policy against installation of the plants where they allow for more intensive use of the site.
The developers have also asked to rezone part of the site, which would allow the county to collect transient occupancy tax (TOT). Under the current zoning, development much more intensive than a golf course is already possible. Currently, 22 acres are zoned for recreational and visitor-serving uses and 35 acres are zoned rural residential, basically allowing for single-family homes on five-acre lots. On the area zoned for recreational use, the owner could already likely build a hotel of up to 50 rooms.
After the packaged treatment plant, a huge factor is the project’s revenue potential for the county. “The overriding consideration is how important tourism is to our economy,” said Peter.
In 2007, the county received total revenues of over $7.9 million in TOT collected in the unincorporated areas, which is up some 40 percent since 2001.
It’s hard to say how much revenue the project will generate for the county until plans are finalized, including how TOT and other fees are charged. In one very preliminary projection submitted to the county, the developers proposed three sources of revenue – TOT, in lieu fees and property taxes. In the projection, 37 casitas would rent out like hotel rooms 30 percent of the time, generating about $112,000 yearly in TOT. Meanwhile, members would pay into property taxes and also pay $10 a night for in lieu fees to use the rooms. Property tax was projected at about $846,000 and in lieu fees at $85,000. In that scenario, the county would see revenues of over $1 million a year from the Sonoma Vineyard Estates.
One example of a project that is part fractional ownership and partly nightly rental is the Carneros Inn, developed by PlumpJack, a resort development company founded by San Francisco mayor Gavin Newsom and his sister. The county is researching how much Napa county receives in TOT from the development.
Fractionalized ownership is similar to time-shares condominium projects, but with fewer owners overall. Fractionalized ownership would be an advantage in financing the projects as people can buy in before the project is constructed.
Once the planning commission makes its recommendation, then it is up to the supervisors to interpret the general plan. If they see the project favorably, then it would go through the full environmental review, including flooding, traffic and biotic studies.
Garry Baker and Cynthia Wood were the two commissioners who voted to recommend the project to the Sonoma County Board of Supervisors, which will make the final call. Baker credited the developers with having done their homework on drainage and creek rehabilitation and restoration. He pointed out that there are already residences in that area at Temelec.
“I think the project as proposed will do a lot more good for Sonoma and the county,” said Baker. “The big hang-up for me and what had me conflicted is: what else can you use that site for? It’s hard pan – you can’t plant it.”