The Portola City Council convened April 9 to conduct the annual review of a development agreement for Portola Highlands, a project also known as Woodbridge at Portola. The review centered on a presentation by Dan Gallagher, of The Schomac Group, Inc, the current developer.
Originally approved Jan. 24, 2007, the agreement between Portola and the original developer outlines a 398-acre mixed-use project. The development encompasses 189 low-density residential units, 522 medium-density residential units, 234 high-density residential units, 60 mixed-use multi-family residential units and 170,000 square feet of commercial development, including retail, office and light industrial spaces.
Additionally, the plan includes 19.6 acres designated for parks, 112 acres of open space and 2.6 acres for public/quasi-public use. Public benefits outlined in Section 1.7 of the agreement include affordable housing, a 15-acre public park, water supply fees and road improvements.
During the meeting, the city council had three options regarding the annual review: approve it as complete, affirming good faith compliance with the agreement; continue the review to seek additional information addressing compliance efforts; or reject the review, citing specific deficiencies and directing staff to identify legal remedies.
Many public reviews since 2007
Since the agreement’s inception, the project has undergone significant public review, including an approved mitigated negative declaration, a general plan amendment, zoning changes and a tentative map approval. The history of the project began between 2007 and 2010 with the review and approval of master plans and administrative modifications. Between June 2012 and July 2013, annual reviews were approved as complete. In December 2013, the property was foreclosed and assigned to RE Future, LLC.
In September 2014, the annual review was again approved as complete. In December 2014, the property was acquired by the development company Schomac, making it the successor in interest to the agreement with the city. After the acquisition, the city collaborated with Schomac on proposed amendments to enhance the project’s financial feasibility.
Once Schomac acquired the property, the city collaborated with the developer between November 2015 and December 2016 to explore proposed amendments to the development agreement and related documents in an effort to improve the project’s financial viability. These proposed amendments were presented at a public workshop held Dec. 6, 2016. However, key issues remained unresolved, and the amendments were ultimately not approved. By October 2017, all development discussions had come to a halt.
A development agreement review was scheduled for 2019 but was postponed due to the emergence of a potential buyer for the property. Since then, the city has not received any further communication from Schomac regarding the project’s development.
Future outlook uncertain
At the April 9 meeting, the council and staff discussed the project’s trajectory. In his presentation, Dan Gallagher of Schomac addressed issues with funding for the project and the process of trying to find a partner investor. Schomac was also the developer of the Nakoma Golf Resort — associated by locals with structural issues — and the unfinished Feather River Inn. The council and staff discussed concerns about developing new houses when the houses already for sale in town aren’t selling quickly. Gallagher discussed the challenges of finding a buyer or joint developer and expressed optimism for future progress.
“Schomac may not really have the resources.”
Steve Gross, Portola city attorney
City Attorney Steve Gross made a lengthy comment: “I’m looking at the December letter from Ryan Schoff [president of Schomac], and in that letter, he says that, while we remain strong believers in Woodbridge, Portola, and Plumas County, the development of the master plan may no longer be in our purview, and Schomac needs to focus on its other major assets, including the Nakoma and the Feather River Inn. And so it almost sounds like there’s a change in the position now of the developer. In December, it’s saying, we really need to divest. Tonight, you’re saying, well, maybe divest, maybe stay involved, because that’s what the developers are telling us. But what I’m taking away from the December letter is that Schomac may not really have the resources.”
Public calls for accessible housing
During public comment, Mimi Gardner, a local real estate broker and developer of the Nakoma Resort, mentioned the need for senior housing, new apartments, low-income housing and a clear conceptual plan. “Gallagher thinks he’s going to come in and make this the Nakoma. I don’t think that’s really what we’re looking for here,” she said. Gardner stressed the importance of housing locals and providing seniors with safe, accessible housing.
She suggested that since the properties are all subdivided into smaller parcels, the city should put them up for sale and offered the land behind the courthouse as the possible site for a senior housing development. “I have a group of people from Las Vegas who have done senior housing, and I have them coming up on <April> 21.”
“This town should be geared around more innovative housing than gated, expensive subdivisions like we did at Nakoma.”
Mimi Gardner, Nakoma Resort developer
Gardner also proposed designating another area for apartment housing and stated that more desirable properties at the top of the ridge with higher views could be sold later for a return. “This town should be geared around more innovative housing than gated, expensive subdivisions like we did at Nakoma.”
She added, “You’ve already had it out here for 11 years, and you know, we haven’t seen anything happen with the Feather River Inn since 2007. I hate to be the bearer of bad news, but people want the Feather River Inn to be open to the local public so that we can enjoy it and not have it sold off to, you know, people from Tahoe who are going to come up and lock us all out.”
The council decided to continue the annual review in one year to see if progress is made.