Cloverdale Approves Esmeralda 4-0 After Adding Soil Testing Sites

Cloverdale's City Council approved the Esmeralda mixed-use development late Nov. 11, 2026, ending a five-hour session with a unanimous vote on a project that will shape the city's finances and land for years. Before the 4-0 roll call, council members rewrote the project's soil-testing condition to name specific contaminated areas and widened a well-testing program for neighbors.

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• Esmeralda package approved 4-0, covering the CEQA addendum, General Plan amendments, Specific Plan, zoning and development agreement.
• Soil testing now required at named sites, including the sports park, landfills and recycling pond, after a floor fight.
• 66% hotel tax rebate for 15 years, capped at $49M, plus a 60% tax increment share to a financing district.
• About 17 speakers split: carpenters and housing advocates backed the project, while neighbors sought delay.
• Tribal representatives declined the Native American Heritage Month proclamation over Planning Commission treatment of Dry Creek Rancheria.

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Esmeralda Clears Council After Testing Fight

Why it matters: The vote approves a master-planned village, resort hotel and parks on a former wood-products site with contamination concerns tied to PCP, a wood preservative. The final conditions narrow how much discretion consultants have over where soil gets tested.

Where things stand: Councilmember Andres Marquez argued that the human health risk assessment language only required consultants to "evaluate" certain areas. He said a trigger based on "historical records" did not guarantee testing at the recycling pond, the east and west landfills, the reusable fill area known as the "Twinkie" and the proposed sports park.

"I don't want that testing to be a judgment call. I want it to be binding in the language," said Councilmember Andres Marquez.

Michael Yarny, a business partner in Esmeralda Land Company, said the condition already used binding language. He said it had been agreed with Russian Riverkeeper. "The applicant shall complete, not evaluate," said Yarny. He also objected to scoping a technical document live at the dais: "You're adding things ad hoc."

The other side: Two of Marquez's colleagues called a named list redundant and potentially limiting.

• "The language is already written," said Councilmember Mark Laskey.
• "I think it actually makes it weaker when you start naming places specifically," said Vice Mayor Todd Lands.

Mayor Brian Wheeler and Lands cited a Nov. 10 email from Russian Riverkeeper. Marquez said a later phone call with the group differed.

City Attorney Alex Mock said the council had latitude. "The council can do whatever it wants. It's a discretionary approval tonight," said Mock. He added that the council could amend the Specific Plan resolution that night, but changing the development agreement would be a substantive change.

After a break, the council read new language into the record. It adds the sports park, reusable fill area, wood waste landfills, recycling pond and downslope areas, lists chemicals of concern and includes "including but not limited to" wording.

Decisions and stakeholder impacts: Lands moved the full package, including administrative changes to the Specific Plan and conditions of approval, and Laskey seconded. The roll call was For: 4 (Marquez, Laskey, Lands, Wheeler), Against: 0, Absent: 1 (Councilmember Marjorie Morgenstern).

"Growth is inevitable. Growth is the way to make this happen, to keep things alive," said Lands. "I'm going to say I'm 100% in support of this," said Wheeler. Marquez thanked colleagues for the extra meetings.

Wheeler also asked that two residents with contamination knowledge get an easy path to be interviewed as part of the testing work.

What's next: Staff said these are planning-level approvals. A master tentative map will return to the council.

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The Money: Hotel Tax Rebate and Financing District

The basics: TOT, or transient occupancy tax, is the hotel tax guests pay. An EIFD, or enhanced infrastructure financing district, redirects future property tax growth to pay for infrastructure.

Where things stand: During an earlier question-and-answer session, Mock walked through the development agreement's terms. The project rebates 66% of TOT for 15 years, capped at $49M. It also commits 60% of the project's property tax increment to a future EIFD with a public financing board.

"66% of that would be rebated to the city once paid for 15 years," said Mock. He added that the deal sets no precedent: "This does not create any binding precedent for future projects."

Esmeralda's CEO, Devin, said the tools protect the city's general fund. "I think it's really important to underline that the city carries no financial risk for this project," he said. A peer-reviewed study reportedly shows a $2M annual surplus at buildout.

The other side: Marquez questioned the EIFD share rising from 55% to 60%. "I think the raising of the EIFD from 55 to 60, I think we should scrutinize that," said Marquez.

Yarny said new obligations had been added to the project. He said the increase creates about $2M in bonding capacity and affects only increment generated by the project. No separate council action on the 55% to 60% change came before the final vote.

Water and sewer: The developer will build two 500,000-gallon water tanks, an access road and a transmission main, and the city will own the mains and tanks. Public Works said the tanks serve the whole city under the water master plan.

The developer cited $1.7M in annual revenue from new customers against less than $300,000 in marginal costs. Mock read figures of $1,069,000 for water and $382,000 for wastewater from the study. He noted the city's peer reviewer did not review the water-enterprise figure.

A master property owners association, estimated at $2.4M per year, will maintain streets, parks and stormwater systems. The state Department of Real Estate reviews that association.

Decisions and stakeholder impacts: Existing ratepayers are told new customers will more than cover added utility costs. However, one key utility figure was not independently checked. The general fund gives up most of the hotel's TOT for 15 years in exchange for infrastructure and a projected surplus.

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Jobs and Housing vs. Neighbors' Demands for Delay

Why it matters: The public comment split showed the coalition behind Esmeralda: organized labor, regional housing advocates and residents tired of delay. On the other side were neighbors who want contamination, seismic and CEQA protections in writing.

Where things stand: Two North Coast States Carpenters Union speakers backed the project. "This will create not only an opportunity for our members, but it will also create 455 permanent jobs for this community," said Jesus Mendoza, field representative, North Coast States Carpenters Union.

Chris Palomo, senior organizer with the union, said the developer committed to labor standards, wages, benefits and apprenticeships.

Jen Klose, executive director of Generation Housing, cited a countywide need of 39,000 units, including 705 for Cloverdale. "This is such an amazing opportunity to knock most of that out with one development," she said.

Several residents also spoke in support. Jay Watkins called approval the logical path to cleaning up contamination. Jonathan Kevlis praised the brownfield reuse, and Craig Carney urged the council to finish the job that night.

The other side: "I'm all for housing. That's not the issue. The issue is the site," said Jennifer Sullivan, a public commenter. Sullivan challenged the deletion of mitigation measure 5.6-3.

Other speakers raised further concerns:

• Rick Coates said added housing could trigger further CEQA review.
• Scott Jackson cited newly discovered faults not covered in the decade-old environmental impact report.
• Rhonda Whitaker sought offsite air monitoring and stop-work thresholds for construction dust.
• Dana Starr asked how the city will handle staffing and oversight before revenue arrives.
• Angela Cordova called for the city attorney's removal. "And the city was so disrespectful to the tribe that already did the tests," she said.

Neighbor wells: Staff had already removed a 500-foot limit from the voluntary groundwater sampling program. Staff also made the applicant financially responsible if the North Coast Regional Water Board finds construction contaminated a well.

Lance Via and Ashley Lopez-White said their shared well sits on Icaria property that Esmeralda will acquire. "Verbal reassurances aren't legally enforceable," said Lopez-White, who asked the council to postpone the vote.

The council did not postpone. Instead, it added language letting a property owner, well owner or authorized user enroll in the sampling program. Colleen Shields thanked the council for the added testing language.

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Heritage Proclamation Goes Unaccepted

Why it matters: A ceremonial item exposed open friction between the city and Dry Creek Rancheria, a neighboring sovereign government.

Where things stand: Wheeler read the Native American Heritage Month proclamation. Marquez then read letters from the chairs of the Manchester Band of Pomo Indians and the Hopland Band, plus a letter from a Dry Creek Rancheria elder.

Marquez said the rancheria was treated disrespectfully at the prior week's Planning Commission meeting over a zone change request. He also recognized tribal funding for county water projects.

The designated recipient, Cordova, said recent Planning Commission conduct left no tribal representative willing to accept the proclamation. She asked the city to keep it. "This proclamation rings hollow," said Cordova, who suggested considering a change in the Planning Commission chair position.

What's next: The mayor and others expressed respect for tribes. No response to the Planning Commission claims was offered at the meeting.

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• Police EV approved 4-0: The council approved a Chevrolet Blazer EV or similar vehicle, not to exceed $65,442.54. Rob Kozlowski, a public commenter, asked for competitive bids including hybrid or gas models. The police chief said it will be an admin vehicle. "I believe this is a good choice," said Wheeler, citing the state's 2035 goal.
• Flood emergency continued 4-0: Public Works Director Derek Montani described permit work with environmental firms, rock staging and a LiDAR study with Sonoma Water ahead of El Niño storms. Wheeler asked for a public crew schedule.
• Animal control shifts to Sonoma County, 4-0: A six-month contract replaces the closed North Bay Animal Services. Staff will evaluate licensing revenue before July 1.
• Consent items 1-5 passed 4-0; items 6-8 were pulled for separate discussion.
• Data center water worries: Residents warned a proposed geothermal-area data center could tap the city's Big Sulphur Creek water rights. "We are paying attention and working very hard to make sure that doesn't happen," said Lands.

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Looking ahead: The Esmeralda master tentative map returns to the council at a future meeting. In council reports, members noted that LAFCO approved formation of the Alexander Valley Water District, which now moves to a protest period. Cloverdale and Healdsburg sought language in the formation on their participation rights.