Memorandum
Date: April 2, 2024
To: The Honorable Lake County Board of Supervisors
From: Mireya G. Turner, Community Development Director
Subject: Consideration of First Amendment to the At-Cost Project Reimbursement and Indemnity Agreement between the County of Lake and Lotusland Investment Holdings, Inc for County Permit Processing of the Maha Guenoc Valley Mixed-Use Development Project
Executive Summary: The Maha Guenoc Valley Mixed-Use Development Project is expected to be a high-end, low-density development consisting of boutique-style hotels, spas, sporting facilities, town centers, cultural facilities, and residential components.
The Maha Guenoc Valley Mixed-Use Development Project was originally approved by the Board of Supervisors in 2020. The Project was challenged in Superior Court. The Court determined that the County's findings regarding community emergency evacuation routes were not supported by substantial evidence, and for that reason, the Environmental Impact Report (EIR) did not comply with the California Environmental Quality Act (CEQA). Based on the Court's ruling, the County rescinded its approval of the project on July 14, 2022. Since that time, Lotusland, Inc, the Project Developer, has worked to modify the project to address emergency evacuation. They are now in the process of submitting a new application for entitlements of the modified project.
The Project will be processed on a cost recovery basis. Due to the extensiveness and complexity of the Project, significant staff time from multiple departments, as well as possible third party contractors, is anticipated. The original At-Cost Reimbursement and Indemnity Agreement was approved on April 25, 2017. It established a fund from which staff time and appropriate expenses have been drawn. This Agreement is still in effect, and now that the new application is ready to be submitted, it is timely to replenish the fund balance.
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