Company affiliated with Edge Esmeralda ‘pop-up village’ enters into purchase agreement for huge site in Cloverdale

A massive, vacant swath of land in southeast Cloverdale that once was to be transformed into a $200 million resort suddenly is slated for potential development by a surprise buyer: a company linked to Edge Esmeralda, the “pop-up village” that attracted visitors from around the world to Healdsburg in June.

Esmeralda Land Company, run by Devon Zuegel, a principal behind Edge Esmeralda, has entered into a purchase agreement for the 267-acre site, which has sat quietly on the real estate market for seven years.

Pending approval from Cloverdale city leaders and final signoff from Esmeralda investors, Zuegel told The Press Democrat on Friday she plans to transform the open space into a full-time neighborhood that includes a hotel.

The ethos of the community will mirror that of the month-long event Zuegel helped lead in Healdsburg in June, where people took part in a variety of lectures and day trips, harmonizing with nature and prioritizing health and wellness.

“I grew up going to Chautauqua in New York and I’ve always wanted to bring that to the West Coast,” Zuegel said, referring to the Chautauqua Institution, a 750-acre community on Chautauqua Lake in New York where roughly 7,500 people go every summer for nine weeks.

While she searched throughout Northern California, Zuegel said, “the Cloverdale spot was perfect.”

“We will be part of Cloverdale,” she said. “We aren’t separate. It will be a full-time community that will be integrated fully in Cloverdale.”

And if you’re picturing a gated community, Zuegel said, think again.

“It’s the exact opposite,” she said. “Esmeralda will be open to the public. Far from being a gated community, we plan to build out a vast new network of publicly accessible trails across the site. Historically this land has been closed to public. We plan to change that.”

Next steps

Zuegel’s vision still faces several steps before it becomes reality. Her Esmeralda Land Company will take the next five to eight months to draw up final plans and make sure the project pencils out. Then, the city council must consider those plans, which no doubt will face scrutiny from at least some of Cloverdale’s 8,700 residents.

But the purchase agreement, terms of which weren’t disclosed, represents a significant step forward, Zuegel and city leaders said. And Cloverdale leaders have been aware of Zuegel’s interest in the property for well over a year.

“It’s a pretty amazing property,” said Cloverdale City Manager David Kelley. “You only see a little bit from [Highway] 101, but you get over the little knoll and it overlooks the Russian River. I would imagine there would be some great views.”

Once plans are finalized, Zuegel said Esmeralda Land Company is committed to hosting town halls to give residents the opportunity to learn about the project and provide feedback. Dates for town halls will be set once plans for the project have been finalized.

The site, located at Asti Road, south of Santana Drive, was once owned by Laulima Development. In 2015, the company announced plans to develop it as the “Alexander Valley Resort” and equestrian center, winning city approval for a hotel of up to 150 rooms, 40 standalone hotel bungalows, a spa and restaurant, 130 homes, the equestrian center, shops and stores. The company also demanded the city close the nearby Cloverdale Municipal Airport, saying its runway was too close to potential horses and guests.

In 2017, the entire project fell through, and the site went back on the real estate market.

At one point, the property housed a Louisiana-Pacific wood processing mill and, after that facility shut down, required a $24 million cleanup to haul away wood debris and other waste, along with environmental remediation to clean soil and groundwater.

To put the size of the property in perspective, 267 acres is the equivalent of about 202 football fields, just shy of a half-square-mile. That’s a hair larger than the existing footprint of the Graton Resort & Casino in Rohnert Park.

‘A different way of living’

Esmeralda Land Company’s investors include “people with deep roots in the Bay Area who grew up in Europe or who have family in Europe,” according to Zuegel.

“They experienced a different way of living that doesn’t exist in California and want to bring that experience here,” she said.

While Zuegel finalizes details for the development, which will include a resort and housing, she said the goal is to create a multigenerational community that’s walkable, bikeable and includes plentiful open space.

Esmeralda Land Company has been studying the site and working with city leaders simultaneously for over a year, said Kelley, the Cloverdale city manager. “It took them quite a while” to get to this point, he said.

The company will continue to work with the city for the remaining “entitlement processes,“ including finalizing designs of each component of the project.

“They’ll need to show what it looks like,” Kelley said. “The buildings, the road; they’ll need a subdivision map.”

Zuegel and her team won’t have to go through a costly environmental review, as the site still has one on file from when the Concord-based Diablo Commercial, formerly Tyris Corp., obtained approval to build a resort on the site in 2008. Cloverdale is in far north Sonoma County, about 90 miles north of San Francisco along Highway 101.

“As long as they come in with a design plan that’s consistent, it should be OK,” Kelley said. “You don’t really deny a project based on design.”

Members of the Cloverdale City Council, which has long sought to see the Alexander Valley Resort site developed, are looking forward to the potential new owners.

“This project, at its core, has an ethos that will fit right in with Cloverdale’s vision for a sustainable community,” Councilmember Melanie Bagby said. “Unlike previous developers, Esmeralda Land Company celebrates its location near SMART, the Great Redwood Trail, Cloverdale Airport and the River Park. They will be an important partner in completing future phases of these projects.”

Amie Windsor is the Community Journalism Team Lead with The Press Democrat. She can be reached at amie.windsor@pressdemocrat.com or 707-521-5218.