LAKE COUNTY, Calif. — On Friday, the California Attorney General’s Office announced a settlement with the developers of the Guenoc Valley Project that will allow a smaller version of the luxury resort and residential development to go forward.

Attorney General Rob Bonta’s office said Friday’s settlement requires a revised version of the project that has a smaller, higher-density footprint to reduce wildfire risk in an area that has had wildland fires in every decade since the 1950s, along with additional measures to reduce greenhouse gas emissions.

“Every year, devastating wildfires burn through California, forcing evacuations, destroying homes, and threatening lives,” said Attorney General Bonta. “Developers have a responsibility to build in a way that recognizes this reality and to make smart decisions at the front end so people's lives are not endangered down the line. Today's settlement is an example of responsible development, demonstrating how developers can reduce both wildfire ignition risks and greenhouse gas impacts at new developments.”

“In the years since the Guenoc Valley Project was originally designed and approved, the science and best practices for fire-safe development have advanced. We are pleased to have reached an agreement with the attorney general that reflects those advances and builds on our shared goal to protect communities and the environment,” said Chris Meredith, a partner in the Guenoc Valley Project.

While the Attorney General’s Office’s action indicates the project can move forward, the two other petitioners, the Center for Biological Diversity and the California Native Plant Society, were not party to the settlement and continue to challenge the project on appeal.

The settlement announced Friday, meant to create a new standard for fire-safe development, comes a year to the month since Lake County Superior Court Judge J. David Markham handed down a ruling setting aside the July 2020 approval by the Board of Supervisors due to errors in environmental review and violation of the California Environmental Quality Act, or CEQA.

The resort and residential community is planned to be built on a 1,415-acre portion of the 16,000-acre Guenoc Ranch property near Middletown, which Lotusland Investment Holdings Inc. acquired in 2016.

In July 2020, the Board of Supervisors approved the project’s first phase, which included 385 residential villas in five subdivisions; five boutique hotels with 127 hotel units and 141 resort residential cottages; 20 campsites; up to 100 workforce housing cohousing units; an outdoor entertainment area, spa and wellness amenities, sports fields, equestrian areas, a new golf course and practice facility, camping area and commercial and retail facilities; agricultural production and support facilities; essential accessory facilities, including back of house facilities; 50 temporary workforce hotel units; emergency response and fire center; a float plane dock; and helipads.

In September 2020, the Center for Biological Diversity and the California Native Plant Society, with the California Attorney General’s Office intervening in support of them, sued the county over the project.

The suit cited myriad issues, including greenhouse gas emissions and building the low-density, luxury resort and housing development in a very high-risk fire hazard severity zone that has burned in 1952, 1953, 1963, 1976, 1980, 1996, 2006, 2014, 2015, 2018 and 2020.

They also raised concerns with the impact of expanding the boundary of existing development into thousands of acres of existing open space and bringing 4,000 new residents to a wildfire-prone area with an existing population of approximately 10,000.

The case was heard in Lake County Superior Court in November 2021, with Judge Markham handing down his decision two months later, at the start of January 2022.

Bonta’s office said the settlement is designed to minimize the risk to current and future Lake County residents and the environment.

The settlement allows the developer to move forward with a smaller, denser version of the project that includes measures to reduce wildfire ignition, evacuation risk, and greenhouse gas emissions generated by the project, contingent on the resolution of other pending litigation challenging the development.

Specifically, the Attorney General’s Office said the settlement requires that the revised project include measures to reduce wildfire ignition risk, including the removal of three development clusters outside the core of the proposed development; various additional road connections to reduce the number of dead-end roads; improved hardscape; and retention of a wildfire expert.

It also requires measures to address greenhouse gas impacts, such as the installation of solar panels and electric vehicle charging equipment at all residential and commercial buildings and the annual purchase of greenhouse gas offset credits, Bonta’s office said.

In addition, under the writ issued by the Lake County Superior Court, the county of Lake also will take additional steps to analyze and address evacuation of the project.

“From the beginning, we have placed the highest importance on safety and sustainability and have worked closely with Lake County and the local community to ensure it is built in a responsible way. Today’s agreement will help this landmark project move forward in delivering increased wildfire safety and greater economic opportunity throughout the region,” Meredith said Friday.

As a result of the settlement, Bonta has filed a request to dismiss the Department of Justice’s appeal against the developers.

A copy of the settlement is published here.

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