COUNTY OF LAKE - File #: 25-756

• File #: 25-756
• Version: 1
• Type: Action Item
• Status: Agenda Ready
• File created: 7/18/2025
• In control: Planning Commission
• On agenda: 7/24/2025
• Title: 9:05 a.m. PUBLIC HEARING - Consideration of PL-25-112: EIR 24-01, DA 24-01, AM 24-01, GPAP 24-01, GPAP 24-02, RZ 24-01, GPD 24-01, UP 24-05, RZ 24-02, and UP 24-08, for the Guenoc Valley Mixed Use Planned Development Project. Applicant: Lotusland Investment Holdings, Inc
• Sponsors: Community Development

Memorandum

Date:                                          July 24, 2025

To:                                          Planning Commission                     

From:                                          Mireya G. Turner, Director

                                          Laura Hall, Senior Planner                     

Subject:                      Consideration of PL-25-112: EIR 24-01, DA 24-01, AM 24-01,

GPAP 24-01, GPAP 24-02, RZ 24-01, GPD 24-01, UP 24-05, RZ

24-02, UP 24-08 1  <file:///\\co.lake.ca.us\fileshares\CommunityDevelopment\Shared\PLANNING%20DIVISION\5.%20Admin%20Files-%20PC,%20ZA,%20etc\PC\AGENDA%20PACKETS\2025%20PACKETS\7-24-2025%20%20GUENOC\GUENOC%20-%20LAURA\Staff%20Report%20PL-25-112%20Guenoc%20Project_7-17-25.docx>, for the Guenoc Valley Mixed Use Planned Development Project ^{<file:///\\co.lake.ca.us\fileshares\CommunityDevelopment\Shared\PLANNING%20DIVISION\5.%20Admin%20Files-%20PC,%20ZA,%20etc\PC\AGENDA%20PACKETS\2025%20PACKETS\7-24-2025%20%20GUENOC\GUENOC%20-%20LAURA\Staff%20Report%20PL-25-112%20Guenoc%20Project_7-17-25.docx>} .  Applicant: Lotusland Investment Holdings, Inc.

Executive Summary:

The Planning Commission is being asked to conduct a public hearing to approve or deny PL-25-112; UP 24-05, UP 24-08, and certify the accompanying Final Environmental Impact Report (EIR) as well as make recommendations to the Board of Supervisors about changes to the Lake County General Plan, the Middletown Area Plan, and the Lake County Zoning Ordinance related to the Guenoc Valley Mixed Use Planned Development Project (Project). In doing so, the Planning Commission will review and consider the Final EIR prepared for the Project, as well as oral and written comments from interested parties and written materials prepared by County staff.

The purpose of this hearing is for the Planning Commission to certify that the Final EIR is in compliance with the California Environmental Quality Act (CEQA), adopt the CEQA Findings of Fact, Statement of Overriding Considerations, and the Mitigation Monitoring and Reporting program, approve the Guenoc Valley Mixed Use Planned Development and Middletown Housing Site Major Use Permit, and make recommendations to the Board of Supervisors on its adoption of a General Plan Amendment, Rezone, Zoning Amendment to Adopt a New Zoning District, General Plan of Development, Specific Plan of Development, and a Development Agreement. Tentative subdivision map approval for the Guenoc Valley Site (SD 24-01 Maha Farm; SD 24-02 Equestrian Center; SD 24-03 Denniston Golf Estates; SD 24-04 Bohn Ridge) and the Middletown Housing Site (SD 24-05 Santa Clara) will be sought separately.

The Project includes the development of a master planned mixed-use resort and residential community within a portion of the Guenoc Valley Ranch property (Guenoc Valley Site or Project Site). The Project includes a General Plan amendment to designate the 16,000-acre Guenoc Valley Site as Resort Commercial and rezone to Guenoc Valley District (GVD). At full buildout, throughout multiple phases, this Project would allow for the development of up to 400 hotel rooms, 450 resort residential units, 1,400 residential estates, and 500 workforce co-housing units within the zoning district. Phase 1 of the Project includes the phased subdivision and related entitlements to allow up to 385 residential villas, 141 resort residential units, 147 hotel units, and accessory resort and commercial uses. In addition, Phase 1 includes a subdivision and rezoning of an off-site parcel (Middletown Housing Site) to accommodate 21 single family residences with optional accessory dwelling units, 29 duplex units in 15 structures, and a community clubhouse and associated infrastructure. Other off-site infrastructure improvements under Phase 1 analyzed include a proposed water supply well on an off-site parcel (Off- Site Well Site) and pipeline located adjacent to and within Butts Canyon Road, along with intersection and electrical transmission line improvements (collectively referred to as ‘Off- Site Improvements’).

The Final EIR consists of the entire 2020 EIR (Draft EIR, Final EIR, and Final EIR Errata), the Partially Revised EIR (July 2024 Draft PREIR, March 2025 Draft PREIR and July 2025 Final PREIR), and all appendices thereto and all of the supporting information. Each of the 2020 Draft and Final EIR, the Final EIR Errata, and the 2025 Draft and Final Partially Revised EIR (EIR 24-01) can be viewed on the Lake County website at: <https://lakecountyca.gov/Guenoc-Valley>, or on the State Clearinghouse website under SCH No. 2019049134^{<file:///\\co.lake.ca.us\fileshares\CommunityDevelopment\Shared\PLANNING%20DIVISION\5.%20Admin%20Files-%20PC,%20ZA,%20etc\PC\AGENDA%20PACKETS\2025%20PACKETS\7-24-2025%20%20GUENOC\GUENOC%20-%20LAURA\Staff%20Report%20PL-25-112%20Guenoc%20Project_7-17-25.docx>}. A hardcopy of the 2025 Draft PREIR and Final PREIR may also be viewed at the County of Lake, Community Development Department, located at 255

N. Forbes St., Lakeport; or at the Middletown Library, located at 21256 Washington St, Middletown.

Recommended Action: 

Staff recommends that the Planning Commission approve the following motions:

1.                     Move that the Planning Commission adopt the Use Permit (PL-25-112; UP 24-05) for the Guenoc Valley Site conditioned upon approval of the General Plan Amendments (GPAP 24-01 and 24-02) and zoning ordinance amendment (AM 24- 01) by the Board of Supervisors. The permit adopted today, for the general plan and specific plan of development, shall be of no force or effect until the Board of Supervisors approves the General Plan and Zoning amendments as recommended by this Commission.

2.                     Move that the Planning Commission adopt the Use Permit (PL-25-112; UP 24-08) for the Middletown Housing Site conditioned upon approval of the of the zoning amendment (RZ 24-02) by the Board of Supervisors. The permit adopted today shall be of no force or effect until the Board of Supervisors approves the Zoning amendment as recommended by this Commission.

3.                     Move that the Planning Commission adopt the CEQA findings pursuant to and included in the Staff Report dated July 24, 2025, including adoption of the Statement of Overriding Considerations and a Mitigation Monitoring Reporting Program, and thereby certify the Final EIR.

4.                     Move that the Planning Commission recommend the Board of Supervisors adopt an ordinance rezoning the Guenoc Valley Site parcels to a Guenoc Valley-Specific District, adding a new chapter to the zoning code pertaining to development in that district, and specifying design guidelines for future development in that district.

5.                     Move that the Planning Commission recommend the Board of Supervisors approve a General Plan Amendment, Rezone, General Plan of Development, Specific Plan of Development, and Development Agreement with the following findings:

A.                     As outlined in this Staff Report, this General Plan Amendment and Rezone is consistent with the Lake County General Plan, the Middletown Area Plan and the Lake County Zoning Ordinance.

B.                     The uses proposed by the general plan of development are compatible with the existing land uses in the vicinity.

C.                     That the site for the project is adequate in size, shape, location, and physical characteristics to accommodate the type of use and level of development proposed.

D.                     That there are adequate public or private services, including but not limited to fire protection, water supply, sewage disposal, and police protection to serve the project.

6.                     Move that the Planning Commission recommend that the Board of Supervisors approve a Rezone of the interior portion of the Santa Clara site from Single Family Residential (R1) to Two-family Residential (R2) subject to the attached findings.

7.                     Move that the Planning Commission approve the Use Permit to allow for the community clubhouse at the Santa Clara site.