COUNTY OF LAKE

COMMUNITY DEVELOPMENT DEPARTMENT Planning Division Courthouse - 255 N. Forbes Street Lakeport, California 95453 Telephone 707/263-2221 FAX 707/263-2225

ITEM # 3 9:40 A.M. December 8, 2011

STAFF REPORT TO: FROM: Planning Commission Richard Coel, Community Development Director Prepared by: Kevin M. Ingram, Senior Planner Utopia Mine Health Resort; GPD 10-01, RZ 10-02, and IS 10-02 Supervisorial District 3 November 28, 2011 Vicinity Map Agency Comments General Plan of Development (submitted by applicant) Site Plans, Building Elevations & Conceptual Drawings Proposed Exhibit A Rezone Map Proposed General Plan of Development Conditions

RE:

DATE:

ATTACHMENTS: 1. 2. 3. 4. 5. 6. I. SUMMARY

The applicant is seeking approval of a General Plan of Development for the establishment of a health and hospitality resort with uses to include: a guest lodge, 24 villas, 25 cabins, and 100 suites, together with medical, health and spa related amenities. In conjunction with the General Plan of Development, the applicant is requesting a rezone to PDC-DR Planned Development CommercialDesign Review from the current zoning designations of RR Rural Residential and RR-SOS Rural ResidentialSubstandard Older Subdivision. Staff is recommending that the Planning Commission recommend that the Board of Supervisors approve this General Plan of Development and Rezone. II. PROJECT DESCRIPTION Dr. Robert Gardner, P.O. Box 1978, Lucerne, CA 95458 5610 East State Highway 20, Lucerne 004-035-03; 033-17, 18, 47, & 50; 033-361-04, 29, 30, 33, 34, 35, 36, 37, 38, 39, 40 & 45 Resort Commercial

Applicant/Owner: Location: APN:

General Plan Designation:

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

Zoning:

Existing: RR Rural Residential & RR-SOS Rural Residential Substandard Older Subdivision Proposed: Review PDC-DR Planned Development CommercialDesign

III.

ENVIRONMENTAL SETTING

Existing uses and improvements: Vacant and undeveloped except for an improved roadway providing access to water storage tanks for the California Water Service Company, providers of public water to the community of Lucerne. Surrounding Zoning and Land Use: The project is bounded by Ceago and Tulip Hill Vineyards to the north; steep sloped paper subdivision of Clear Lake Gardens Unit 7 to the East; the community of Lucerne to south; and State Highway 20 and Clear Lake to the west. Fire District: School District: Water Supply: Sewage Disposal: Project Size: Northshore Fire Protection District Lucerne Valley Unified School District California Water Service Company & Private Well Lake County Sanitation District

approximately 20 acres

Topography: Varied and steep with many areas containing slopes of greater than 30%. Vegetation: Mix of oak woodlands and annual grasslands.

Natural Hazards: Very High Wildland Fire Hazard Area Previous projects at this site: Project site is located directly adjacent to the Utopia Mercury Mine, which was in operation during the early 1900s. Small lots at this site were subdivided in the early 1920s as part of Unit 7 of the Clearlake Gardens subdivision. They are legal lots of record but lack access to basic infrastructure including water, sewer, roads and electricity. Grading and road building permits have been issued at this site for the purpose of improving access to water storage tanks located adjacent to this project area. IV. PROJECT OVERVIEW

The PDC Planned Development Commercial zoning district requires approval of a General Plan of Development consisting of a graphic and written representation of the development, including the maximum numbers of units for each lodging type, intended phasing of development and the location of all areas to be reserved in open space. In addition to a General Plan of Development, PDC zoning requires approval of specific plan(s) of development. The specific plan(s) must include detailed information about the intended development, including landscaping details,

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

building elevations, drainage, traffic and circulation. The applicant is seeking approval of a rezone and General Plan of Development prior to moving forward with the preparation of the detailed plans required for the specific plan. This General Plan of Development permit will not authorize any development or construction. An additional public hearing, environmental review and Planning Commission approval is required prior to approval of the use permit for a specific plan of development and any related development or ground disturbance. The purpose of this application is to define the overall scope of the project, which is expected to be constructed in multiple phases. The applicant is seeking to combine resort and wellness uses with the natural beauty and character of the land. The goal of the project is to establish a serene, natural retreat where people can come to focus on physical, emotional, and spiritual health and enjoy nature. The Utopia Resort would provide a number of amenities to guests beyond just accommodations. These uses will all be geared towards achievement of better health, positive mindsets and a connection with nature. In addition to resort and wellness uses, the applicant is seeking to develop a number of outdoor uses such as hiking, biking, equestrian, gardening and other similar outdoor recreational uses. Particular care has been made to design and locate uses so as to maintain and be compatible with the natural surrounding environment. The project area is currently vacant hillside overlooking Clear Lake, situated between the community of Lucerne to the Southeast and Ceago and Tulip Hill Wineries to the Northwest. The portion of the property nearest Highway 20 was used at the beginning of the twentieth century as a quicksilver mine, known as Utopia Mine, of which this project derives its name. The proposed resort is primarily located in an area that was subdivided into small 5,000 square foot lots on steep slopes with little or no access to infrastructure. Many of these paper lots have been designated with a combining district designation of SOS Substandard Older Subdivision and lack adequate public services such as streets, water and sewer. Attachment 2 contains the written portion of the General Plan of Development outlining the project area and proposed uses. Attachment 3 includes site plans, proposed building elevations and concept drawings of for the proposed project. Final detailed development plans are not required as part of the General Plan of Development review, but are necessary prior to the approval of a Use Permit for Specific Plan of Development. Following is a summary of the proposal: Uses & Facilities The proposed improvements consist of 25 villas, 25 cabins, six over-the-water honeymoon suites, and eight large fourplexes consisting of around a total of 100 master suites that will function as a condo hotel. Owners and guests will occupy suites and a minimum of 25% of the suites will be available for rent to the traveling public at any given time. Also proposed are a lodge, spa, hiking cabin, and a natural amphitheater area for outdoor events. Guests vehicles for the spa and cabins will be parked in designated areas at the north end of the project and guests will walk, bike or use electric carts while at the resort. Access Access to the project is proposed in two locations. Foothill Drive to the south is located at the north end of Lucerne and goes through a residential neighborhood to access the site. Foothill Drive to the north is an undeveloped roadway to paper subdivision lots located at the south end of 3

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

Ceago property. Proposed development will be located on the hillside located above surrounding uses. Ownership The ownership of the suites, cabins, and villas may be fractional. The resort would likely include a number of different ownership options including time-shares, multiple ownership for the suites and cabins, and also individual ownership. When owners are not able to use their units, they may be placed in a rental pool and rented out to the general public. There will be a corporation of local investors for the development and construction of the lodge, spa and cottages. This new corporation would retain ownership of the lodge, spa, and rental program. The specific ownership structure will be subject to approval of the Planning Commission as part of a future Use Permit for Specific Plan of Development. Medical The proposed project intends to be a getaway resort where patrons come to improve their health. Proposed medical facilities include cosmetic dentistry, plastic surgery, weight reduction programs, hypnosis, pain reduction, end of life care, a spa and other similar uses. The resort would also host medical workshops and other health promotion workshops. All of these uses would be open to guest and resort patrons only. Special Events & Open Space The proposal includes the hosting of special events, both indoor and outdoor. The project proposes a small amphitheatre and conference rooms. Proposed special events are likely to include medical workshops for health professionals, health and well-being seminars, and weddings. The applicant intends to incorporate and preserve the natural beauty of the site. Both pedestrian and equestrian trails are proposed. Other open space uses include the use of gardens, both flower and vegetable. Food produced on site would also be served on site, but would not be made available for retail sale. Phasing The project is proposed to be developed in two phases, although these phases may need to be further broken out into smaller phases in order to ensure the securing of financing. No development would be permitted through the approval of this General Plan of Development. Each phase must be reviewed and approved by the Planning Commission as a Use Permit for Specific Plan of Development, which will be subject to the California Environmental Quality Act (CEQA), and will need to be consistent with the approved General Plan of Development. Phase 1 of the project is focused on the area near the existing California Water Service Company storage tanks on the southern side of the project. Development will consist primarily of the lodge, pools and exercise area, along with clusters of fourplexes for lodging. This will likely be accomplished through a subdivision, lot line adjustment and/or voluntary merger of the existing paper subdivision lots to facilitate cohesive development. Planning Staff also encourages the applicant to submit a recreational plan during phase 1 describing the types of recreational uses allowed and where they will be situated at the site. Phase 2 consists primarily of the development of cabins, additional suites and lodging, as well as medical and health related amenities. This phase may also include development along the shoreline of Clear Lake. 4

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

The applicant is also continuing to acquire additional paper subdivision lots in the area of this project with the intent of incorporating them into this project. The primary purpose of these continued acquisitions is to provide additional open space and recreational uses for the resort. Through approval of a general plan amendment, rezone and either a new general plan of development, or an amendment to this general plan of development, additional adjoining lots could be incorporated into this project. Studies Completed This report references a number of specific studies and information provided by the applicant. Due to the size and volume of these studies, not all have been included as attachments to this report, but are on file with the Community Development Department. These studies include: Cultural Resources Survey (not available to the public due to the possibility of sensitive resources), Focused Traffic Analysis, Assessment of Biological Resources with Botanical Survey & Wetlands Delineation, Water Demand Study, Engineering Geologic Reconnaissance, Preliminary Geotechnical Evaluation for Lodge & Suites, Site Investigation of Naturally Occurring Mercury Concentrations, and Geotechnical Investigation for Fennel Road Improvements. More specific studies are likely to be required prior to the approval of development permits as part of future use permits for specific plans of development. The level of analysis and studies completed by the applicant meet all Zoning Ordinance requirements for approval of a General Plan of Development. Summary The initial study prepared for this General Plan of Development identifies a number of potentially significant environmental impacts associated with the development of this project. Based on this analysis, it appears that these impacts can be mitigated to levels of less than significance. However, more detailed information, including grading plans, geotechnical reports and traffic analysis studies will be required to be included as part of future use permit applications for specific plans of development. Additionally, the submitted General Plan of Development includes several ambitious features for the resort, such as a dock with wine tasting and sea plane access, six honeymoon suites constructed over Clear Lake, and a tram to access the resort. Not enough information was provided to adequately analyze these proposed uses or their consistency with the County Public Trust obligations and Shoreline Ordinance. Staff recommends that this be left open, and evaluated when more detailed plans are submitted. It should be noted that upon review of detailed plans, an EIR may be necessary to analyze potential environmental impacts. V. ENVIRONMENTAL ANALYSIS

Issue: Land Use & Aesthetics Impact/Analysis: As previously discussed, the proposed resort community is primarily located in an area that was subdivided in the 1920s into small lots on steep slopes with little or no access to infrastructure. Many of these lots have been designated with a combining district designation of SOS Substandard Older Subdivision and lack adequate public services such as streets, water and sewer. The Lake County General Plan and Shoreline Communities Area Plan both contain policies that support creative solutions for reducing the negative impacts of these lots, such as those proposed by this development.

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

The concept of a future resort at this site was discussed during the preparation of the Shoreline Communities Area Plan (SCAP) in 2009. The project area was designated with a general plan land use designation of Resort Commercial with a place holder zoning of RR Rural Residential. At the time of approval of the SCAP it was decided that a resort at this site was supported in concept, and that additional studies and environmental analysis would be required prior to the rezoning of the site to allow for resort uses. The applicant has conducted a number of studies and has prepared both written and conceptual illustrations of the proposed resort uses at this site consistent with the requirements of Article 15 of the Zoning Ordinance for the rezoning of lands to PDC Planned Development Commercial. This project seeks to incorporate resort uses with timeshares, restaurant, special events, a spa, and some medical facilities accessory to the resort use. Many of these uses are not allowed in the RR district. Medical facilities are not proposed to be open to the general public. As an accessory use to the resort, the proposed medical uses are consistent with the Resort Commercial general plan land use designation and can be incorporated into the project through this Planned Development process. The PDC zoning will provide the developer the flexibility necessary for the various components of this project. The General Plan permits a limited number of residential, individual ownership units associated with mixed use resorts. Policy LU-6.12 states: The County shall encourage development of resorts while ensuring land suitability and compatibility with surrounding land uses. Mixed Use Resort proposals requesting increased residential density may be considered outside of Community Growth Boundaries provided that: 1. The primary scope of the project is resort commercial. 2. The resort provides substantial resort and recreational facilities that will be available to the public, and the project will specifically enhance the tourism objectives of the County. 3. The developer is able to adequately demonstrate that the additional residential units are necessary to support the infrastructure and public resort amenity costs for the overall project and the overall project is economically infeasible without the additional residential units. 4. The residential component is secondary and subordinate. 5. Applications are submitted as Planned Developments. For Mixed Use Resorts to include residential units, the development must be processed as a Planned Development. This process will be used to determine the appropriate number of residential units allowed. 6.12.1 Except as provided in 6.12.2 below, the residential component of a Mixed Use Resort shall not allow more residential units than resort units during the course of construction and at build out. 6.12.2 If a Mixed Use Resort is adjacent to a Community Growth Boundary and public infrastructure (sewer, water, fire, schools) are available, the number of residential units 6

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

needed to support resort amenities may exceed the number of resort units, if it is determined that the project will specifically enhance the tourism objectives of the County. However, the number of residential units compared to resort units shall not exceed a 2:1 ratio and in no case shall the residential density exceed one residential unit per gross acre of the total acreage of the Mixed Use Resort project area. The proposed project ownership structure will be developed consistent with this policy. A small portion guest units will be permitted for fractional and individual ownership. Fractional ownership is defined as an ownership structure consisting of four or more entities. A minimum of two-thirds of guest units shall be made available to the general public at all times. Units available to the general public may include fractional ownership units. Ownership of private guest units will be limited to the structure only. The creation of individual lots of record within the resort is not permitted. Proposed open spaces and small scale agricultural production at this site are consistent with the Resort Commercial general plan land use designation and compatible with surrounding uses. The Agricultural Resources Element of the general plan also promotes the mix of agricultural uses and tourism. The development of gardens, both walking and vegetable gardens to include smalls scale agricultural production such as vegetable gardens is permitted in the PDC zoning district and Resort Commercial land use designation permit this type of agricultural use as an accessory to the resort. Steep slopes in the area and the small lot sizes will make it impossible to conduct any large scale agricultural operations. Agricultural products produced at this site will be used as part of other resort uses and will not be made available for retail sale to the general public. The Lake County Important Farmland mapping by the California Department of Conservation designates the project area as Other Lands, and is not considered to be prime farmland or farmland of local importance. According to the Soil Survey of Lake County, prepared by the United States Department of Agriculture, this site does not contain class I-IV prime agricultural soils. Agricultural uses and prime agricultural soils are located adjacent to this project area to the northwest. Proposed resort uses are not expected to create a conflict with agricultural uses due to both distance and topography. Mitigation: General Plan of Development Conditions, section A. Issue: Traffic & Circulation Impact/Analysis: The development of a resort at this site may create impacts to State Highway 20, and local roadways in Lucerne. Mitigations should be incorporated into this General Plan of Development requiring additional specific studies be submitted and reviewed for approval prior to the consideration of approval of future use permits for specific plans of development. Highway 20 At Caltrans request, a traffic impact study was prepared by W-Trans in September of 2010 analyzing potential traffic impacts related to Phase 1 activities, including the development of a lodge, and limited number of guest units and health related amenities. The study analyzed the impacts of the project through the use of two access points from State Highway 20, both the improved portion of Foothill Drive located at the southern end of the project site, and the 7

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

unimproved section of Foothill Drive at the northern end of the site. The study concluded that no improvements are warranted to these intersections for Phase 1. Caltrans recommended that additional traffic impact studies be conducted for each phase, analyzing the impact of traffic increases at these intersections. This requirement is included in the recommended conditions. Impacts to Local County Roadways In addition to impacts to the State Highway System, the proposed project will also result in impacts to County roads such as Foothill Drive (south), Foothill Drive (north) and Roland Drive. Possible intersection and roadway improvements are likely to be required as a part of this project. These impacts will be reviewed by the Planning Commission as a part of future use permits for specific plans of development. All proposed improvements will also be required to be compatible with the Northshore Fire Protection District standards. Internal Circulation Included site plans in Attachment 4 of this staff report depict proposed internal circulation patterns. The applicant has already completed substantial improvements from Roland Drive to the California Water Service Company water storage tanks located along the south end of this project. A preliminary geotechnical investigation examined improvements to the existing paper subdivision road, Fennel Drive, which will provide the primary north-south linkage to both access roads across the property. The applicant indicates in the project narrative that guests will park their vehicles and leave them in the parking lot for the duration of their stay. Internal circulation will be oriented towards pedestrian, golf cart and equestrian type uses. Parking requirements for this site are subject to the regulations and design features of the Zoning Ordinance. Emergency vehicle access will also need to be reviewed by the Northshore Fire Protection District, Department of Public Works and the Community Development Department. The permit requires that these issues be analyzed for each phases as part of the associated Use Permit for Specific Plan of Development. Public Transportation The Lake County Transit Authority has indicated that the build out of this project is likely to result in the increased need of transit for both guests and employees. Each phase of development should analyze potential impacts and increases in demand for transit. Lake Transit currently provides service to the community of Lucerne. Mitigation: General Plan of Development Conditions, section B. Issue: Utilities & Service Systems Impact/Analysis: The development of proposed resort uses at this site will require significant infrastructure improvements to water and sewer systems. The project site does not currently have water or sewer infrastructure in place. Planning Staff, the applicant, Lake County Special Districts and California Water Service Company met in August to discuss needed improvements to serve the resort with water and sewer, and both noted that access to water and sewer is available but the a applicant will be responsible for significant improvements, including the construction of necessary infrastructure and possible capacity and treatment improvements.

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

There is no sewer collection system currently in place to serve the subject project and a sewer mainline extension will be required. Prior to the approval of any use permit for specific plan of development the applicant will be required to submit a project description detailing proposed sewer usage and connections for evaluation of impacts by the Districts hydraulic model. The applicant is working with the California Water Service Company to provide water to the majority of this project. Water service through existing entitlements is available to serve Phase 1 developments. Alternative means of providing water will need to be explored for the portion of the project that is to be located at an elevation above the existing Water Company storage tanks. The applicant will be responsible for all expenses associated with extension of infrastructure. Current ratepayers will not be impacted. The applicant also is proposing to develop on-site wells in order to provide irrigation water for gardens and landscaping. Mitigation: General Plan of Development Conditions, section C. Issue: Geology, Hydrology & Water Quality Impact/Analysis: The steep terrain that makes up the area presents a number of challenges to development. These challenges include landslides, erosion and impacts related to previous mercury mining. The applicant submitted four studies pertaining to geotechnical and soil-related issued with the site. These studies, all prepared by SHN Consulting Engineers & Geologists, Inc., include: 1) Engineering Geologic Reconnaissance report (March 2009), which analyzes general geologic and soil features for the entire project area; 2) Preliminary Geotechnical Evaluation for Resort Lodge and Suites (April 2010) is a more specific geotechnical evaluation including test pits for the area and structures associated with proposed Phase 1 of the project; 3) Naturally Occurring Mercury Concentrations Site Investigation (December 2010), discussing the presence of mercury associated with the Utopia Mine; and 4) Geotechnical Investigation Fennel Road Improvement Project (January 2010), which provides a detailed study of geologic and soil conditions for the proposed roadway providing access to later phases of development of this project. Each study contains detailed mitigation measures and recommendations for proposed uses, and concludes that the proposed project will not result in significant impacts to geology and soils in the area, if properly mitigated with stated recommendations. Existing landslide hazards were identified and mapped by the March 2009, Engineering Geologic Reconnaissance report and further analyzed through test pits in the Preliminary Geotechnical Evaluation Resort Lodge and Suites report of April 2010. Identified landslides for the project area consist mainly of two types. The first are shallow individual slumps of several hundred square feet. The second is an active, five acre complex of older, relatively deep-seated slumps and relatively shallow earth flows. The report recommends avoidance of a large landslide area along the northwestern portion of the site. The smaller landslide areas can largely be avoided through the avoidance of areas of greater than 40% slopes. Significant amounts of soil erosion are not currently occurring on the subject site. However, erosion rates are likely to increase during and after development, if not mitigated. Changes in land use, including construction of impervious surfaces (rooftops, paved areas, and so on) will change natural runoff conditions. Increased concentrated runoff could result in accelerated erosion. Driveways, parking areas, and other impervious surfaces should be designed to dissipate runoff 9

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

uniformly. The County Water Resources Department indicated that construction of this project is likely to result in significant increases to stormwater in this area. The applicant has indicated that project design intends to capture excess stormwater and use it for irrigation. General Plan of Development conditions require preliminary engineered drainage plans and calculations demonstrating the proposed mitigation for increase in peak runoff prior to the approval of any use permit for specific plan of development. Final drainage plans will be required prior to the permitting of any construction. Additionally, a General Construction Permit will be required from the Regional Water Quality Control Board for Stormwater drainage under the National Pollutant Discharge Elimination System. No polluted water shall be permitted to enter public drainage ways or Clear Lake from this site. A design level geotechnical analysis will need to be provided for each phase of development and made part of each use permit for specific plan of development. Project design should be required to conform to the recommendations outlined in all previously conducted geotechnical reports. Site design and construction mitigations should incorporate measures addressing seismicity, landslide hazards, erosion potential and the presence of mercury. The applicant is encouraged to avoid mapped landslide hazards and redesign the project as appropriate. Mitigation: General Plan of Development Conditions, section D. Issue: Biological Resources Impact/Analysis: Without proper mitigations in place at the time of construction the development of the proposed uses would result in significant impacts to biological resources, especially oak woodland areas present at the site. According to the submitted General Plan of Development, maintenance of the natural surroundings is integral to the resort atmosphere desired, and the preservation of nature is expressed as key to the overall development plan. An assessment of Biological Resources with Botanical Survey and Delineation of Waters of U.S. was prepared on June 30, 2010 for the main project parcel (APN 004-035-03). The assessment found no threatened or endangered plant species. However, a large portion of the site was identified as containing oak woodlands. Removal of oak woodlands is subject to CEQA requirements outlined in 21083.4, requiring mitigation for lost trees. The applicant conducted an investigation of oaks on the property and has sited proposed structures in a manner so as to reduce the number of trees that would need to be removed in conjunction with the project. The biological resource assessment identified the potential presence of three sensitive and regulated wildlife species: western pond turtle, white-tailed kite, and pallid bat. The wetlands delineation found that the project site contains 0.408 acre of possible waters of the U.S. in the form of an unnamed stream traversing the middle of the property. The project applicant, as stated in the written section of the General Plan of Development, is committed to preserving the natural state of the property. This includes the avoidance of identified waterways located in the project area. However, if work is needed to be conducted in identified waters of the U.S., the applicant would be responsible for obtaining required permits from the California Department of Fish and Game, U.S. Army Corps of Engineers and California Regional Water Quality Control Board. No construction or development is permitted as part of the approval of the General Plan of Development for this site. An oak woodlands mitigation plan will be required to be submitted as a part of any future use permit application for specific plan of development. Prior to the approval of a use permit for specific plan 10

Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

of development which includes any additional unstudied properties, similar assessments will be required. The project will result in an incremental loss of wildlife habitat and is subject to the California Department of Fish and Game filing fee. The fee must be paid within 30 days of approval of the General Plan of Development by the Board of Supervisors. Mitigation: General Plan of Development Conditions, section E. Issue: Cultural Resources Impact/Analysis: A cultural resources survey was conducted on July 14, 2006 by Sentinel Archaeological Research, LLC, for the main project parcel (APN 004-035-03). The survey did not identify the presence of cultural resources at this site and further stated the likelihood of archaeological resources being found at this site is low. Future use permits for specific plans of development should include standard mitigation language stating that should cultural resources be discovered during construction of the project all work should be halted and a qualified archaeologist be retained to review found items. Any development proposed on properties not reviewed by the July 14, 2006 study will be required to be surveyed prior to the issuance of a use permit for specific plan of development. Mitigation: General Plan of Development Conditions, section E. Issue: Public Safety & Hazardous Materials Impact/Analysis: This project may result in impacts to public safety, and may entail the use of hazardous materials. The project has been reviewed by the Northshore Fire Protection District. Constructed access ways and buildings will be required to meet applicable fire code standards. The project is also located in a wildland fire hazard area and will be subject to Calfire standards. Elevated Mercury Levels This project is located directly adjacent to the historical Utopia Mercury Mine site. This mine operated in the early 1900s near the base of a south-facing hillside, along the Clear Lake shore, just northwest of the community of Lucerne. This area was later modified when a steep cut-slope was constructed for the present course of State Highway 20. The Lake County Department of Water Resources Department expressed concerns about the possibility of elevated mercury levels. Areas of mercury soil concentrations were mapped by SHN as part of their preliminary geotechnical analysis. The highest levels of mercury were found in soil samples directly adjacent to the old mine shaft near the shoreline and along the side of State Highway 20. This presents challenges to any future use of this shoreline for later phases of the proposed project. Soil samples for other areas of the development were of a magnitude similar to that found to naturally occur in other areas of Lake County. Hazardous Waste Generation Related to Medical Facilities The project proposes to include a variety of medical services in conjunction with the resort uses. Medical offices are often engaged in the routine transport and disposal of hazardous materials, which will be required to meet the standards set forth by the Environmental Health Division and

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Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

any applicable state or federal guidelines. Further analysis of uses involving the routine transportation and disposal of hazardous wastes should be completed as part of future use permits for specific plans of development. Mitigation: General Plan of Development Conditions, section E. Issue: Air Quality & Noise Impact/Analysis: Development of proposed uses, including the lodge, assorted guest accommodations, parking area, spa and other health related amenities will require adequate surfacing of roadways and parking areas to reduce air quality impacts related to dust. There are no existing air quality violations in the vicinity of this project. The project proposes to reduce potential air quality impacts through LEED certification for structures and proposes to limit vehicular access and support transportation via electric carts and the promotion of pedestrian uses. The Lake County Air Quality Management District has stated that additional information will need to be provided at the time of application for a use permit for specific plan of development. Plans at the time of use permit application will need to contain details about parking and general circulation, proposed heating and cooling systems for buildings, and the locations and types of animals to be housed at this site. The applicant intends to hold medical conferences, health classes for guests, weddings and other similar special event uses at this site. Noise impacts related to events uses will be required to be analyzed in greater detail through the use permit for specific plan of development process. The general plan of development conditions include provisions that will require future use permits for specific plans of development to mitigate for noise impacts. This will include the need to conduct noise studies for potential uses such as outdoor events and live music. Adequate setbacks will also need to be maintained between the resort development and residential parcels to the southeast. The applicant has made a commitment to creating an atmosphere marketing a serene and natural environment. The reduction of noise resulting from resort uses is a part of this commitment. The applicant also intends to reduce vehicular noise through the creation of a pedestrian access only in the resort area, including for special event purposes. The Use Permit process is likely to require setbacks from existing residential uses for proposed resort uses that may create noise. Mitigation: General Plan of Development Conditions, section F. VI. RECOMMENDATION

Staff recommends that the Planning Commission take the following actions: A. Recommend that the Board of Supervisors adopt a mitigated negative declaration for RZ 1002 & GPD 10-01 with the following findings: 1. Potential environmental impacts related to Land Use & Aesthetics have been mitigated to insignificant levels by General Plan of Development conditions, section A.

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2.

Potential environmental impacts related to Traffic & Circulation have been mitigated to insignificant levels by General Plan of Development conditions, section B. Potential environmental impacts related to Utilities & Service Systems have been mitigated to insignificant levels by General Plan of Development conditions, section C. Potential environmental impacts related to Geology, Hydrology & Water Quality have been mitigated to insignificant levels by General Plan of Development conditions, section D. Potential environmental impacts related to Cultural & Biological Resources have been mitigated to insignificant levels by General Plan of Development conditions, section E. Potential environmental impacts related to Air Quality & Noise have been mitigated to insignificant levels by General Plan of Development conditions, section F. The proposal is consistent with the Lake County General Plan, Zoning Ordinance and Shoreline Communities Area Plan. The uses allowed in the PDC-DR zoning district in conjunction with the proposed general plan of development are compatible with the existing land uses in the vicinity. As designed and mitigated, this project will be compatible with land use patterns in the vicinity, and will not result in any significant adverse environmental impacts.

3.

4.

5.

6.

7.

8.

9.

B.

Recommend that the Board of Supervisors approve RZ 10-02 for the following reasons: 1. This proposal is consistent with the Lake County General Plan, Zoning Ordinance and the Shoreline Communities Area Plan. The uses allowed in the PDC-DR zoning district, as restricted by the general plan of development are compatible with the existing land uses in the vicinity. The PDR-DR zoning district is consistent with the Commercial Resort land use designation. This project will not result in any significant adverse environmental impact, and a negative declaration has been recommended.

2.

3.

4.

C.

Recommend that the Board of Supervisors approve GPD 10-01 subject to the conditions listed in Attachment 6 and for the following reasons:

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1.

The uses proposed by the general plan of development are consistent with the Lake County General Plan, Zoning Ordinance and the Shoreline Communities Area Plan. The uses proposed by the general plan of development are compatible with the existing land uses in the vicinity. This project is consistent with the goals of the Lake County Marketing Plan. This project will not result in any significant adverse environmental impacts, and a mitigated negative declaration has been recommended. The project will result in effects to fish and wildlife habitat and is subject the California Department of Fish and Game filing fee.

2.

3. 4.

5.

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Utopia Mine Health Resort, GPD 10-01; GPAP 10-02; RZ 10-02

Sample Motions: Negative Declaration for Rezone & General Plan of Development I move that the Planning Commission find on the basis of Initial Study No. 10-02 prepared by the Planning Division, that the rezone and general plan of development applied for by Dr. Robert Gardner as modified will not have a significant effect on the environment and, therefore, recommend to the Board of Supervisors that they approve a mitigated negative declaration for the proposed rezone and general plan of development with the findings listed in the staff report dated November 28, 2011. Rezone Approval I move that the Planning Commission has reviewed and considered the environmental effects of this rezoning as set forth in the proposed mitigated negative declaration, which has been prepared for this project, and that the Planning Commission recommends approval of the proposed rezoning from RR and RR-SOS to PDC-DR, as set forth on the Exhibit A zoning map, as applied for by Dr. Robert Gardner on property located at 5610 East State Highway 20, Lucerne for the reasons listed in the staff report dated November 28, 2011. General Plan of Development Approval I move that the Planning Commission has reviewed and considered the environmental effects of this general plan of development as set forth in the proposed mitigated negative declaration which has been prepared for this project and that the Planning Commission recommends approval of the proposal as modified for the reasons listed in the staff report dated November 28, 2011.

NOTE: This Rezone and General Plan of Development application will be forwarded to the Board of Supervisors for consideration. Reviewed by: __________

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Utopia Mine Health Resort Vicinity Map

This map was prepared for information purposes only. No liability is assumed for the accuracy of the data shown. Source: Lake County GIS

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COUNTY OF LAKE GENERAL PLAN OF DEVELOPMENT; GPD 10-01 Utopia Mine Health Resort Pursuant to the approval of the Lake County Board of Supervisors on ________, 2012 there is hereby granted to Dr. Bob Gardner, approval to allow a general plan of development for the establishment of health resort to include 150 guest units, lodge & spa amenities, medical facilities for use by guests, and special events, on property located at 5610 East State Highway 20, Lucerne, being Assessors Parcel Number 004-035-03; 033-351-17, 18, 47 & 50; and 033-361-04, 29, 30, 33, 34, 35, 36, 37, 38, 39, 40 & 45, subject to the following conditions: A. Land Use, Aesthetics & General Conditions

1. This general plan of development authorizes the following uses, subject to the approval of use permits for specific plan of development for each phase: o Up to 150 resort units, including fractional ownership. A minimum of two thirds of the resort units shall be maintained for transient occupancy. o Fractional units shall be owned by a minimum of four owners, and may be considered as transient when calculating two thirds transient occupancy. o Guest accommodations may include a combination of villas, cabins, and other similar units as described and shown in the submitted general plan of development. o Lodge and spa amenities. o Medical and health related amenities for use by guests. o Special event uses such as medical conferences, health and wellness classes and weddings. o Recreational improvements and accessory structures, and gardens. 2. Except as modified by conditions of this general plan of development, this project shall be consistent with the graphic and written documents dated attached hereto as Exhibit A (Attachments 3 & 4 of the Staff Report dated November 28, 2011) constituting the General Plan of Development for the Utopia Mine Resort. Minor modifications not resulting in increased environmental impacts may be approved in writing by the Community Development Director. 3. Future use permits for specific plan of development shall contain detailed graphic information and photo simulations depicting this project from Clear Lake, the community of Lucerne and State Highway 20. 4. Future use permits for specific plan of development shall contain a detailed lighting plan. Outdoor lighting shall be designed and located to minimize ambient light levels for any given application, consistent with public safety standards. Lighting shall comply with recommendation of www.darksky.org. Lighting fixtures shall be designed to minimize glare and the direct view of light sources. 5. This permit does not abridge or supersede the regulatory powers or permit requirements of any federal, state or local agency, special district or department which may retain a regulatory or advisory function as specified by statute or ordinance, including the State Lands Commission for any development proposed on or adjacent to Clear Lake. The permit holder shall obtain permits as may be required from each agency. 6. All future use permits for specific plans of development and associated development permits shall be found to be consistent with the Lake County General Plan, Zoning Ordinance, Shoreline Communities Area Plan and other applicable sections of the Lake County Code, including but not limited to the Shoreline Ordinance, which are in effect at the time of approval. 7. All structures shall be certified through the LEED program, or similar organization. Through the use of the LEED program principles established by the U.S. Green Building Council (USGBC), the project shall meet the following performance standards:

Utopia Mine Health Resort General Plan of Development; GPD 10-01 a) Sustainable site development techniques should be utilized, including the avoidance of natural features such as oak woodlands and seasonal waterways. b) Circulation patterns will allow guests the opportunity to forego their cars and use small electric vehicles or other pedestrian means to access resort services and explore nature. c) Water savings and protection including but not limited to alternative stormwater collection and utilization techniques shall be incorporated into the project. d) Alternative renewable energy systems, including but not limited to solar power systems, are encouraged for development of this project. e) A project waste management plan shall be developed to reduce off-site waste by 20%.

B.

Traffic & Circulation

1. A detailed traffic impact study shall be completed by a qualified professional for each phase of development to analyze the impact of traffic increases for each entry to the project area. The traffic study must be prepared and meet all requirements set forth by Caltrans. Recommendations of the study shall be incorporated into future phases, subject to review and approval by the County Public Works Department and Caltrans. 2. Each application for use permit for specific plan of development shall include a detailed circulation plan and proposed impacts to county roads, designed by a licensed professional. This plan shall detail internal circulation movement, proposed parking, emergency access and transit facilities. This plan will be required to be reviewed and approved by the Community Development Department, Department of Public Works, Lake County Transit Authority and the Northshore Fire Protection District prior to the approval of a use permit for specific plan of development. 3. The entry gate shall be fitted with a knox box or similar device allowing it to be accessible by the local fire protection district. C. Utilities & Service Systems

1. Prior to the approval of any use permit for specific plan of development, the permit holder shall provide a detailed site plan to Special Districts which depicts sewer connections and indicates the intensity of uses for each phase of development. This plan shall be prepared by licensed professional and be approved by Special Districts prior to the approval of a use permit for specific plan of development. 2. Prior to the approval of any use permit for specific plan of development the permit holder shall provide a detailed site plan to California Water Service depicting locations of all water connections and indicating the level of water usage for each phase of development. A will serve letter from California Water Service shall be required for each phase of development which includes the use of public water from the Lucerne public water system. All proposed plans shall be prepared by licensed professional and be approved by California Water Service prior to the approval of a use permit for specific plan of development. D. Geology, Hydrology & Water Quality

1. A design level geotechnical investigation and analysis shall be prepared for each phase of development and made part of each use permit for specific plan of development. Project design shall conform to the recommendations outlined in all previously conducted geotechnical reports. Site design and construction mitigations should incorporate measures addressing seismic shaking, landslide hazards, erosion potential and analysis of naturally occurring mercury. 2. Prior to the approval of any use permit for specific plan of development preliminary engineered drainage plans and calculations shall be submitted to and approved by the Lake County Water Resources Department.

Utopia Mine Health Resort General Plan of Development; GPD 10-01 3. A Stormwater Pollution Prevention Plan approved by the California Regional Water Quality Control Board shall be completed for each phase of development. Prior to the issuance of a building or grading permit following the approval of a use permit for specific plan of development, the permit holder shall obtain a General Construction Permit from the Regional Water Quality Control Board for Stormwater drainage under the National Pollutant Discharge Elimination System. This plan shall be updated and maintained for each phase of development. A copy of the approved plan shall be provided to the Lake County Community Development Department. E. Cultural & Biological Resources

1. Any development proposed on properties not reviewed by cultural resources study dated July 14, 2006, conducted by Sentinel Archaeological Research, LLC, shall be surveyed and evaluated for the presence of archaeological resources prior to the issuance of a use permit for specific plan of development. 2. A condition of each use permit for specific plan of development shall require mitigation measures recommended as a part of the June 30, 2010 assessment of Biological Resources with Botanical Survey and Delineation of Waters of U.S, conducted by Northwest Biosurvey, to be adhered to. Any development proposed in areas not reviewed by the June 30, 2010 assessment, shall be surveyed and evaluated for the presence of biological resources prior to the issuance of a use permit for specific plan of development. 3. This General Plan of Development approval shall not become effective, operative, vested or final until the California Department of Fish and Game filing fee required or authorized by Section 711.4 of the Fish and Game Code is submitted or waived. Said fee shall be paid within 30 days of project approval (checks to be made payable to the County of Lake). F. Air Quality & Noise

1. Each use permit for specific plan of development application shall include details about surfacing of parking and general circulation areas, proposed heating and cooling systems for buildings, and the locations and types of animals to be kept at this site. 2. Each use permit for specific plan of development shall include a detailed analysis of potential noise inducing impacts. Prior to the issuance of a use permit for a specific plan of development which permits special events, the permit holder shall submit a detailed special events plan. This plan shall include a description of special event types, locations of facilities and areas to be utilized for special events, a parking plan, an emergency access plan, a solid waste and wastewater management plan, and noise mitigation measures. If amplified sound is proposed, the permit holder will be responsible for submitting a noise study completed by a qualified professional that analyzes proposed noise levels and types, and recommends mitigation measures to be incorporated into the special events plan, if anticipated noise would exceed Zoning Ordinance standards. G. Timing & Mitigation Monitoring 1. This general plan of development shall expire two years from the date of approval by the Board of Supervisors, unless it has been vested or extended pursuant to the provisions of the PDC zoning district. 2. This permit shall be valid until it expires or is revoked pursuant to the terms of this permit and/or Chapter 21 of the Lake County Code. 3. The permit holder shall permit the County of Lake or representative(s) or designee(s) to make periodic inspections at any reasonable time deemed necessary in order to assure that the activity being performed under authority of this permit is in accordance with the terms and conditions prescribed herein.

COMMUNITY DEVELOPMENT DEPARTMENT Richard Coel, Director

Utopia Mine Health Resort General Plan of Development; GPD 10-01 Prepared by: KI By: Danae Bowen, Office Assistant III

ACCEPTANCE I have read and understand the foregoing conditions and agree to each and every term and condition thereof.

Date: Applicant or Authorized Agent Signature

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