Montage Healdsburg Developer Fined $6.4M By State Water Board

HEALDSBURG, CA — The company behind a luxury resort and residential project near Healdsburg is facing a $6.4 million fine over dozens of alleged water quality violations involving streams that feed into the Russian River, according to state water officials.

Sonoma Luxury Resort LLC, the company behind the Montage Healdsburg resort —formerly called Saggio Hills — is alleged to have violated state and federal water rules 38 times in 2018 and 2019 and to have discharged "9.4 million gallons of highly turbid water into Russian River tributaries," according to officials with the North Coast Regional Water Quality Control Board.

The fine was approved Thursday by the North Coast Water Board at the conclusion of a public hearing.

"This fine reflects the substantial violations found over a wide area after multiple storms," Board Chairperson Valerie Quinto said in a news release Monday. "The North Coast Water Board takes these violations seriously and has made enforcement of violations of storm water permits a priority in the North Coast Region."

According to the water board, "All owners of construction sites larger than one acre must enroll in the stormwater permitting program... Failure to design, employ and maintain best management practices that prevent or minimize pollutants from discharging off site can result in sediment-laden stormwater that threatens to smother aquatic animals and habitat, alter or obstruct flows that could lead to flooding, and reduce water clarity."

"The stormwater permit, designed to protect against weather-related environmental damage originating at building sites, requires developers to implement precautionary measures such as slope stabilization, erosion and sediment control, curtailment of activity when it rains, and the use of sediment basins and traps to contain highly erosive soils," according to the water board.

In the case of Montage Healdsburg, a North Coast Water Board investigation found that during construction, the company failed "to prevent or minimize pollutants from discharging off site, resulting in egregious violations over many months and threatening the well-being of salmon populations," according to the news release.

"Significant deficiencies with the site" were first identified by water board staff in November 2018; In December 2018, construction was temporarily suspended "to give the developer the chance to correct its procedures," the water board said.

After the initial inspection, there were "modest improvements to best management practices, though such practices appeared to be short-lived," the water board said, as construction was again suspended in February 2019.

"Unauthorized discharges to waterways continued to occur from the site through May 2019 and after the developer removed best management practices from many active construction areas," the water board said.

The resort is described in Water Board documents as consisting of a 130-room hotel along with housing, including some affordable housing, a public park, a fire substation and 142 acres of private open space on a 258-acre piece of land in the hills north of Healdsburg in unincorporated Sonoma County.

Representatives from Sonoma Luxury Resort LLC did not respond to a request for comment from Bay City News Service.

In the public hearing held Thursday, the North Coast Water Board reviewed photos and other evidence "documenting the violations throughout the construction site," water board officials said. Before imposing the fine, the board said it also heard arguments and reviewed evidence from Sonoma Luxury Resort LLC.

According to case documents, on Feb. 11, Sonoma Luxury Resort LLC waived its right to a hearing before the North Coast Water Board within 90 days and requested to engage in settlement talks with the prosecution team. The waiver request was accepted and the water board's legal team met with the Sonoma Luxury Resort's legal representatives on multiple occasions.

"Settlement negotiations followed between March and September 2020, but the Prosecution Team and the Discharger were unable to resolve disputed factual matters and reach an agreement. Accordingly, this matter [was] scheduled for an administrative hearing in December 2020."

View a copy of the administrative complaint, which details the violations and the adopted order.

Bay City News Service contributed to this report.