St. Helena Measure B: Who's For It, Who's Against It, And Why

NAPA VALLEY, CA—Napa County voters will consider several ballot measures this November, from tax hikes to school bonds to agritourism.

In St. Helena, a simple majority vote on Measure B, an agritourism initiative, would allow the owners of Napa Valley Wine Train to move forward with constructing a resort at the north end of the railway.

Specifically, St. Helena Measure B asks voters: "Shall a measure to amend the St. Helena General Plan 2040, the St. Helena Zoning Map, and the St. Helena Municipal Code to create a Winery and Planned Agritourism Overlay to allow resort hotel development on certain large winery property within the City, be adopted?"

Patch spoke with the developer, Noble House Hotels and Resorts, in March, shortly after the city broke the news about the proposed ballot measure. The Seattle-based company operates 22 properties, including several in California. It also owns the Napa Valley Wine Train, an agritourism attraction that runs from Napa to the Charles Krug Winery property in St. Helena.

According to Scott Colee, Noble House's chief marketing officer, the company has been talking with the Mondavi Family, owners of the Charles Krug Winery property, for several years about a joint venture for the resort.

"In 2018 we started a conversation with the Mondavi family to do this in partnership with Peter Mondavi on fallow land that has not grown grapes for over 20 years," Colee said. "We want this to be an ultra-luxury property with 56 rooms, made up of single-story bungalow style suites, and a great house with 17 rooms with freestanding spa and restaurant."

The resort would be called Noble Hill.

"Then everything stalled out during the pandemic — until about a year ago," Colee said.

Noble House took steps to meet with the city of St. Helena, the Chamber of Commerce, and several members of the community to discuss the property.

"So far, we have been met with strong support," Colee said. "We know the city is in need of tax revenue."

A study showed the resort could bring in over $3 million annually.

Colee said that instead of the standard city process, which can take more than eight years, they started to investigate alternatives and decided to proceed with the initiative because it considerably shortened the timeline.

"It really comes down to three things: employee housing, we have a solution for that," Colee said. "The train owns land just south of the project where we plan to build employee housing. The community is concerned about water, and we have a water consultant who is advising us on that."

The third issue is traffic, and Colee said the resort's entrance was designed to be off Deer Park Way rather than Highway 29, where most of the traffic is.

"The idea is that you can take the train to the hotel," he said.

The measure needs a simple majority — at least 50 percent — of yes votes to pass.

"That would give us permission to start construction."

If the measure passes, construction is anticipated to start in January 2026 and would take 18 months to complete.

The Wine Train currently provides access for winery visitors and would also be utilized by resort patrons once the proposed project is operational. The 50-foot-wide Wine Train right-of-way is not anticipated to require any modifications; however, enhancements within the right-of-way are anticipated to implement the new station and boarding area, as well as the two new guest rooms in refurbished, historic train cars.

Impartial Analysis Of Measure B

From City Attorney Ethan Walsh:

"Measure B was placed on the ballot by citizens’ initiative petition, and if approved by a majority of the voters voting on the measure, would amend the General Plan and Zoning Code of the City of St. Helena (“City”) to permit development of a hotel of up to 56 rooms and related public and visitor-serving amenities. (the “Project”). The amendments to the General Plan and Zoning Code would allow the Project to be developed on parcels in excess of 110-acres with existing active agriculture and a winery, that are served by an existing railroad line.

"The Initiative is intended to apply to a specific site, located at 2800 Main Street, which is within the City limits, but outside the City’s Urban Limit Line. The proposed amendments to the General Plan exclude the Project from the definition of “urban development” (which is prohibited outside the Urban Limit Line), and provide that the Project does not require the extension of City sewer or water service or storm drainage infrastructure, so long as the Project meets specified criteria for onsite wastewater treatment, provision of adequate water from existing on-site wells, and emergency water systems.

"The proposed amendments to the Zoning Code establish a new Winery and Planned Agritourism Overlay (the “WPA”) that would apply to the site at 2800 Main Street and would permit the development of a hotel, resort, or similar use, along with accessory uses at that location.

"The Initiative generally provides that design review is not required for permitted uses in the WPA, but establishes specific development standards that would apply to the Project, and establishes “environmental design features” that are intended to avoid or minimize environmental effects of development.

"The Initiative requires the Project applicant to seek approval of a minimum of 50 units of affordable rental housing for moderate-income households, located on a separate legal parcel within the City. If the City approves the proposed housing prior to certificate of occupancy for the Project, then the applicant would have to complete construction of the housing within two years of the City’s approval. If the City does not approve the housing proposal prior to issuance of a certificate of occupancy for the Project, then the applicant would have to pay the City’s affordable housing impact fee, but would not be required to construct the affordable housing.

"A 'yes' vote on Measure B approves the amendments to the City’s General Plan and Zoning Code, which would permit the development of the Project at the proposed Site at 2800 Main Street.

"A 'no' vote on Measure B disapproves the amendments to the City’s General Plan and Zoning Code, and the development of the Project would not be permitted at the proposed Site at 2800 Main Street under the City’s existing General Plan and Zoning Code."

Argument Against Measure B

From St. Helena resident Elizabeth Weber Novak:

"Noble House Hotels & Resorts of Kirkland, WA, the hopeful developers of the St. Helena Resort at Charles Krug Winery, have put this initiative on the ballot with the intent of bypassing the normal processes by which projects are vetted by our city officials (staff, planning commission and city council). Using the initiative process means we, the citizens of St. Helena, have no input. It means
that the City of St. Helena is unable to work with the applicant to make sure our needs are taken into consideration. If passed, it means we allow a developer to propose development not in keeping with our General Plan, our Zoning and Municipal Codes, development that would require large amounts of our water, our scarcest shared resource, work around all that we have created to manage development in our community.

"This is our community, not theirs. All of us in St. Helena are expected to honor our General Plan, our city ordinances, zoning and codes, for any project we might envision. Why would we allow someone from the outside to bypass our community values?

"Our City Attorney has noted that, were this to come through normal processes, staff would likely not recommend it. Why? CEQA review will not be required. Misrepresentation of revenue (applicant states TOT over five years will be $3,

633,880; city estimate is $1,387,989 at best, $693,965 at worst). And more. Our City Manager has noted that we would miss out on potential millions of dollars’ worth of 'community benefits' such as infrastructure fees that are normally negotiated with developers.

"It is entirely irresponsible to approve of something of this magnitude via the initiative process. Vote No on B to ensure Noble House goes through the same processes as anyone who wishes to develop in our town."

"Vote No On Measure B"

From Pamela Susan Kenward, Grace Kistner, Beth Novak, Richard Seiferheld and Celeste Neeley:

"St. Helena Resort, proposed by out-of-town developers, should not be decided by initiative. It should go through our normal city processes.

"To know the facts, read the 9212 Report on the City’s website. 10 out of 17 negative findings. City Attorney at June 25th City Council meeting, “…through the normal entitlement process – it would be my guess that staff would not recommend it.”

"Revenue is significantly overstated. The City estimates between $693,965 to $1,800,000, versus the Developer’s reported $3,666,880. (Pg 58) Borrowing for infrastructure and other needs cannot be collateralized by TOT revenues. We lose millions in community benefits. City Manager obtained a consultant’s estimate of $7-8 million in non-tax community benefits if negotiated under normal processes. Wipes out CEQA’s environmental analysis, allowing untold damage to our environment.

"Water! Developer hasn’t demonstrated the feasibility of using on-site wells (Pg5-6); increases extraction from agricultural wells to 30,300 gallons per day, more than 2.5 times current winery extraction rate (Pg 47); will use agricultural wells, which City Code prohibited years ago; gets out of the obligation to comply with City’s water neutrality ordinance. (Pg5)

"Traffic data supplies insufficient evidence to support trip generation and distribution assumptions. (Pg43)

"Measure B “provides no incentives” to obtain approval of a workforce housing, which means that Noble House (the developer) would pay an in-lieu fee of $795,000 toward workforce housing, while the local Hall family is slated to pay $3.2 million for Farmstead Lodging.

"We in the community must have a voice. Vote NO on Measure B!"

Rebuttal To Argument Against Measure B

From Riana Mondavi, multi-generational St. Helena resident; Ozzie Gallegos, St. Helena resident; Elyse Walker, St. Helena retailer; Elliot Bell, St. Helena firefighter; and Dione Carston, St. Helena business owner:

"Measure B helps secure our community’s future. An independent economic study shows that Measure B will bring an estimated $3.6 million in new tax revenue annually and substantially increase the city’s bonding capacity. This will provide essential funding to address the city’s budget shortfalls and dire financial situation, recently highlighted by a bond outlook rating downgrade.

"This means real funding for streets, sidewalks, public safety, and water and wastewater facilities.
The proposed world-class resort at Charles Krug Winery has undergone extensive environmental study and reflects the culmination of nearly a year of community engagement that included town halls, group discussions, and individual meetings. Because it incorporates the input received from St. Helena residents, Measure B reflects our community’s values and our needs. It includes
affordable workforce housing, easing a critical shortage in our community, and commits to sustainable water management to protect our local aquifers and preserve our natural resources.

"Placing Measure B on the ballot wasn’t a decision taken lightly. Those opposed to Measure B argue that St. Helena residents should not make the decision on what is best for the community and want to leave the project to the same lengthy and cumbersome process that got St. Helena into its current financial situation. We believe residents are the best decision makers, and Measure B empowers citizens to take charge of our future.

"A Yes vote on Measure B is a vote for economic stability, job creation, sustainable development, and a stronger St. Helena. Vote Yes on Measure B. For more information, please visit: www.YesonB.vote."

See the city's webpage about Measure B, which includes an environmental assessment report o the project.

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