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Development in the Sierras: Is Royal Gorge Building A House Of Cards On Donner Summit?

By Kathryn Gray
Serene Lakes
In 1992, Queen Elizabeth, in her presentation to the Guildhall, described the preceding year as an "annus horribilis," no doubt as the many negative situations in the royal family that year showed the world that the rich, even the royal have just as many family complications as anyone else, compounded by the incessant glare of publicity.
Now, Royal Gorge LLC, perhaps royal in name only, but richly endowed with the natural treasures of the Sierra, is experiencing what looks like, at least if these first few months are anything to go by, their own "annus horribilis."
They can only blame themselves for an inept "first footing" at the start of the year. In November 2007, Royal Gorge LLC submitted extensive plans for their development to Placer County, with an apparent "gentleman's agreement" to shield those plans from public view. On the part of the county, any agreement to that effect was in contravention of the California Public Records Act; it took until the turn of the year, and a scheduled court date, to bring both the county and Royal Gorge LLC to their senses. One still wonders what the rationale of either party was, and how Royal Gorge LLC thought this would advance their interests. It was a bad way to start 2008, at least in terms of assuring the community openness and transparency were more than "greenwash."
From this rocky start, things started drifting downhill fast. Royal Gorge LLC had not only shielded its submissions to Placer County from the general public, they'd refused to release their extensive "Water Alternatives" document to the Sierra Lakes County Water District (SLCWD), despite the fact their employee, Mike Livak had made assurances at two board meetings that SLCWD would receive the results of the "study" at the same time as would Placer County. No matter even that the document clearly stated it was released at the same time to SLCWD and public- it was kept firmly under wraps by both Royal Gorge LLC and Placer County for over a month.
Perhaps Royal Gorge LLC and Placer County had sequestered this document in a particularly moth infested chamber, as when it was introduced by Royal Gorge LLC's consultant, Ben Swann of CDM, at January's SLCWD meeting, it had as many holes as a fishing net. Putting aside the hugely unpopular notion of building a quarter mile wide, 60 plus foot high dam on Serena Creek, a class one trout stream that is a tributary of the wild and scenic North Fork American River, the report was met by incredulity by most of the very large crowd in attendance. First, Mr. Swann asserted that there was excess water flowing over the dam into Serena Creek from January to June, when from their own documents it appeared there was only water available for two months.
Second, Mr. Swann tried a hard-sell, telling the crowd that Royal Gorge LLC could raise the dam on the lakes 6 inches in order to provide more water for development. What he neglected to say is that while, during rapid snow melt, the water level is up 6 inches or so, this condition lasted only a few days last year. Royal Gorge LLC plans to maintain this 6 inch raise for many months, into summer, when vegetation is no longer dormant; this will raise the level of water on many private properties, swamping property, with consequent damage to native trees and shrubs, hardscape, and foundations. And don't even think about the mosquitoes!
Mr. Swann also presented the alternative of pumping water up from springs at Rainbow Lodge, springs which would feed the South Yuba River if they weren't sold off as bulk water to Nestle-Perrier or the like, to water the proposed development at the Summit. Most of those in attendance at SLCWD's meeting were probably not aware that Royal Gorge had indeed been selling water without Placer County permits since 1988, nor were they aware that in Placer County wrists aren't even slapped for this (Placer County has awarded a mitigated negative declaration). Everyone was aware, however, that this didn't pass the silly test- pumping water up 1000 feet in elevation- it would be cheaper to bottle it first, truck it up, and then pour it into everyone's toilets. Seriously, when you add up ripping up old HWY 40 to lay pipes for the water, the pump stations necessary to keep the water going uphill, and the chutzpah to take water away from the South Yuba, and all the little cabins down at Rainbow/Hampshire Rocks- you're looking at 10 million dollars or more. And is a Mello-Roos bond really going to pay for this, or is Royal Gorge LLC going to try to stick SLCWD with the bill?
Mr. Swann's presentation kept the audience busy with questions, for example, how could CDM claim that a 3,000 square foot town home would use the same amount of water as a hotel room, especially since the studies they'd cited didn't support that claim? There were many other questions of the same nature, very few answered to the satisfaction of the people asking the questions.
A presentation to Donner Summit Public Utilities District came close on the heels of CDM's presentation to SLCWD. The general feeling of those attending was that Carollo Engineers, the consultants, were well prepared, and very frank regarding the challenges of disposing of sewage for 1000 brand new units on Donner Summit. There was talk of using modern types of leach fields to handle the new development's sewage, but it was also admitted that the efficacy of those could be problematic in the hard granite of the Summit. Additional problems would be presented by the necessity of keeping people away from the leach fields. Complications of disposing of treated effluent were discussed. It must be noted here that downstream users of water from the South Yuba River are becoming increasingly sensitive to what is being put into the river from the Summit. Very sensitive.
And then there was the new ice age, a problem Royal Gorge LLC either doesn't yet comprehend the magnitude of, or, more likely, presents a problem they want to push under the rug, in hopes some really hot weather, say, in December, will make go away. An ice fishing employee of SLCWD mentioned the thickness of the ice on Serene Lakes, which, incidentally used to be called Ice Lakes- Ice Lakes as in an ice harvesting business was carried on many, many years ago. The district took note, as there was an indication that at least in the early part of the year, the channel between the two lakes was frozen solid. The district is now conducting an ongoing study, and so far the data shows that for many months of the year, water is bound up in ice, and not usable. In the second week of March 2008, the ice over the district's intake pipe was 5 feet thick, which meant that there was very little water available for use. This has not been a problem in the past, but add in Royal Gorge LLC's 700-1000 units, all demanding water, and by February we could all be singing, "how dry I am."
All of the foregoing, while presenting serious problems, pale in the light of Sugar Bowl's announcement this week that they have withdrawn from an agreement to support a downhill ski link with Royal Gorge LLC's proposed "Ski Camp." It is presumed that they are likewise no longer committed to supporting the lifts and runs Royal Gorge LLC was going to carve out of Razorback Ridge. Royal Gorge LLC had crowed to investors about this link with Sugar Bowl, which was going to make them the largest cross country/downhill resort in the country. Now Sugar Bowl, a company truly concerned with being a "green" ski resort, and wary of the global warming freight train barreling down the tracks, has had the courage to take a harder look at what's best for Donner Summit, and has decided to not only "talk the talk" of green resorts, but also to take the hard first steps of "walking the walk."
Royal Gorge LLC, especially if they've been keeping an eye on Dyer Mountain, a proposed development that has recently sought the protection of Chapter 11 bankruptcy in order to postpone their (inevitable?) date on the courthouse steps, must be having some hard looks at their development model. Their first response has been to downplay alpine skiing, saying they're emphasizing nordic skiing.
However, Royal Gorge LLC's supposed emphasis on nordic skiing still involves covering the cross country resort with sprawl, something no one wants to ski through. Also, it seems they haven't dealt with another pressing issue- the high voltage PG&E main trunk lines running through their proposed development. If the towers aren't moved, they'll run directly through their "West Lake" and Lodge- hardly an amenity.
Undergrounding of these lines is complex. They can't be put under roads with all the other utilities, as an errant bulldozer could take out Sacramento's or San Francisco's power. Whether undergrounding is practical, and whether PG&E would even consent to moving the lines requires study; a study of which, according to a PG&E representative last week, Royal Gorge LLC has not signed on to. A ballpark figure for undergrounding, not necessarily factoring in digging into granite, is three thousand dollars a foot! As a mile to a mile and a half is involved, that's a very large sum of money. And, if the lines are merely moved, and not undergrounded, cross country skiers might be looking forward to skiing on trails under power lines- the Tower of Power trail, maybe?
How can Royal Gorge LLC turn what looks like an "annus horribilis" into, say, an "annus mirabilis," at least preventing greater disasters? Maybe now is a good time to genuinely look at what's good for the cross country resort, and what's good for Donner Summit. Instead of doubling down their bets, maybe they should listen to the majority on the Summit who aren't opposed to growth, but who want to see growth that will not kill the golden goose. Will Royal Gorge LLC come to understand that their "Pave to Save" plan for the cross country resort has been a lead balloon from day 1?
Royal Gorge used to have a fabled lodge, which, sadly, burnt down. Perhaps Royal Gorge LLC should think about rebuilding that lodge or building a concentrated lodge and condo development, near the current Summit Lodge. Such a development would save most of the resort from the indignities of suburban sprawl, and would use a reasonable amount of water, which would reassure homeowners in Serene Lakes that Royal Gorge LLC won't drain the lakes to fill their pockets.
Perhaps it's time for Royal Gorge LLC to leave off building their house of cards, which won't withstand the realities of Donner Summit's climate, and instead, build a small development that preserves the integrity and heritage of the Summit.
Kathryn Gray is a graduate of the School of Social Ecology, University of California at Irvine, and Boalt Hall School of Law, University of California at Berkeley. She and her husband, Joseph Gray, founded a specialized semiconductor company in 1989. Now retired, they spend their time on environmental causes, including monitoring the large development proposed on Donner Summit. More information on this development may be found at www.saveoursummit.org.
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