The decades-old resort was destroyed in the September 2015 Valley fire, and since then has been seeking to get its rebuild off the ground.
However, in a letter sent to Supervisor Moke Simon late in November, Sajjad Mahmud, senior vice president and managing director, and Julie Adams, vice president and managing director, criticized Community Development Director Bob Massarelli and his department for what they said has been a burdensome planning process filled with obstacles.
Mahmud and Adams’ letter went so far as to say that dealing with the Community Development Department has been worse than the Valley fire itself.
Concerns about the rebuild process for the resort aren’t new. In March, the Middletown Area Merchants Association wrote to the Board of Supervisors, asking that the body “recognize Harbin’s importance to the economy of South Lake County, and do what it can to facilitate the rebuilding of Harbin Hot Springs.”
The association’s letter said the resort attracted 200,000 unique visitors from around the world to Middletown each year. It estimated that the resort’s closure since the fire has resulted in a loss of $125,000 annually in transient occupancy tax, $120,000 in lost sales tax, with south county businesses losing at least $2 million in annual revenue on top of the loss of 240 jobs.
In response to the Nov. 27 letter from Mahmud and Adams, Simon had the matter placed on the board’s Tuesday agenda for discussion.
Harbin supporters helped fill up the room for the morning meeting. Simon said he brought the matter to the board for the opportunity to discuss the vision and the process of the resort.
Massarelli gave an overview of his involvement with the project, noting that he started his job at the county in June 2016 and very quickly learned how important Harbin was to Lake County in terms of the economic base, jobs, other businesses and tax revenue.
He said he invited resort officials to a meeting in September 2016, at which point his staff laid out the process of updating the specific plan of development for rebuilding the resort.
However, he noted that the project isn’t “just a simple rebuild,” explaining that 1,700 acres are being added to the resort and facilities are being moved around the property.
He said 1993 was the last time the resort received project approvals, adding that a lot has changed in 24 years.
When the resort’s management submitted a general plan of development two months ago, Massarelli said it didn’t meet the county’s code requirements.
Due to the October Sulphur fire, Massarelli said his department’s last meeting with Harbin officials was moved to this Wednesday.
Board Chair Jeff Smith recalled resort representatives coming to the board meetings right after the Valley fire and stating that they wanted to be the first to rebuild.
“We all wished it would have happened by now, for sure,” Smith said.
Supervisor Rob Brown pointed out that the resort had received the permits for its phase one – reported to include the renovation and reopening of its pool facilities – and asked where that was in the process.
Mahmud said they’ve made good progress on phase one, with a lot of construction having taken place already. He estimated the resort is about three months away from opening again for day use.
His complaints on Tuesday touched on lengthy delays – in some instances, several months – between submittal of plans and response from Community Development. Grading plans and building color schemes that have been requested were earlier in the process than expected, and overall they felt the requests were excessive.
Brown pointed out that everyone – even those rebuilding their homes – now have more requirements than they did in in decades past.
One of the issues facing the project is that it’s been placed under design review in accordance with the Middletown Area Plan. “How do we get around that?” asked Brown.
Massarelli said he thought his department was working well with Harbin, and trying to make sure that what is built is replacing “like with like.”
He said they asked for color samples to see how the new construction would fit with the area. “We’re not asking for elaborate detailed drawings.”
Brown pointed out that if the resort submits color samples now and then decides to repaint in a year, the county isn’t going to stop them. They can’t, however, get away from the grading plan, he added.
Smith said Massarelli is following the laws, and that the only people who can tell him to do anything different are the supervisors.
Simon said they got themselves into a pickle as a board this last year by saying what the intent of the Middletown Area Plan was, and that it’s been applied to one business but not another. That statement seemed to refer to previous discussions about the plan in reference to the Dollar General project.
“The main thing is, getting stuff rebuilt,” Simon said, adding that he thought there needed to be more communication between Community Development and resort staff. “Right now I don’t have any solutions.”
County Counsel Anita Grant urged the board to avoid making sweeping legislative changes when talking about one project.
“Also, don’t forget the law of unintended consequences, which can sometimes come back,” she said.
Grant added that the board could direct staff to streamline the process within the bounds of existing law, but that they have the obligation to apply the rules equally to everyone.
Supervisor Jim Steele said he thinks the project’s change in scope – referring to the 1,700-acre addition – was a part of the challenge, and that other things took up staff time.
Steele also faulted the resort for the “ad hominem” nature of its letter that blamed Massarelli, and said there was an across-the-board communication problem.
In response, Adams went to the microphone to say that the letter had originated in response to Massarelli’s comments at the Nov. 9 Middletown Area Town Hall meeting. The meeting can be seen in the video below; Massarelli’s comments begin at 1:55:16 in the video.
Adams said they interpreted Massarelli’s comments at that time to mean he wasn’t happy to be working on the project. “His response was not supportive.”
She added, “What we really want is the same kind of easy, friendly, loving relationship before the Middletown Area Plan dropped out of the sky.” Adams said it was a surprise to find the resort covered by the plan.
Mahmud said they are now trying to get an entry kiosk and reception trailer in place, as well as a trailer for ministerial and other services in the interim before permanent structures are built.
Massarelli said that at the Wednesday meeting between his staff and resort officials they could go through each of the issues. He added that he needs to talk to the chief building official about allowing for the trailers, as they’re not proposed to be on foundations.
Mahmud emphasized that they want to move the project forward and not lose the 2018 construction season. He asked that the general plan for the project be approved before the next construction season starts.
Community offers support for resort
The board heard on Tuesday from several community member and business people who asked for the county’s help in getting Harbin’s project moved forward.
Steve Foster said he’d lived at Harbin for 22 years, serving for 18 years as managing director. “It is more than just bricks and mortar, it’s the people.”
Foster said he gets phone calls from people weekly begging for the resort to reopen. “Our contribution and commitment is to get Harbin back as soon as possible,” he said, and he asked the board to do whatever they can to get the resort reopened.
Robert Hartley, founder of Heart Consciousness Church, which owns Harbin, told the board, “I just want to stress that there are so many people whose lives are hurt by the failure to complete the rebuild.”
He cited hundreds of local employees as well as the thousands of Bay Area residents for whom the resort is a place of sanctuary and renewal.
Lisa Kaplan, director of the Middletown Art Center, came to speak on behalf of the Middletown Area Merchants Association. She presented copies of the letter and petition the group sent to the board in March in support of Harbin.
“We have fewer visitors to Lake County, which affects all of us,” Kaplan said, outlining the lost room and sales tax, fewer jobs and lost tourism spending.
Some businesses have closed since Harbin burned, “And we could possibly lose more,” she said.
Kaplan asked the board to instruct staff to do whatever possible to speed up the resort’s rebuild. “Time actually is of the essence. We are two and a half years after the fire at this point in time,” she said.
Robert White, another Harbin community member, said of the resort, “Harbin wasn’t something, it is something, and we miss it.”
Duane Harper, representing Hardester’s Markets, said Harbin has played an important role in the local economy. He noted the resort’s rebuilding will be key to the community’s Valley fire recovery, attracting thousands of visitors and increasing local employment.
Simon asked to give direction to staff to streamline the planning process as much as possible, with Massarelli saying he would report back on the Wednesday meeting with the resort staff.
Supervisor Tina Scott pointed out that Harbin isn’t the only project in Lake County that will help the county if it moves forward. She asked if there is something they can do to streamline other projects.
Massarelli suggested they put that topic on a future agenda, as he has several ideas.
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112717 Harbin Hot Springs letter to county of Lake by LakeCoNews on Scribd