Ruse Pulls Appeal

Valley executive Craig Ramsey, founder of Vlocity and co-owner of The Matheson in downtown Healdsburg, was shown as the sole manager or member of the LLC on its original filing, in July 2020.

The issue concerns the city’s land use determination for the former Honor Mansion, which was sold by longtime owner Steve Fowler in 2020 for about $5 million to the current owners. They in turn spent an unknown amount to upgrade the property, a remodel that included a 2,392-squarefoot outdoor pavilion with a full kitchen, bar area and lounge that could serve beer, wine and spirits.

Other recreational features of their redesign included pickleball courts, a badminton and yoga lawn, an extensive putting green, a redesigned swimming pool and other features of a luxury resort.

The changes included changing the name to The Ruse, an odd choice for a project that in retrospect appears to have attempted an end run around local zoning permits.

After a year of working with the city on the project, whose general contractor was longtime Healdsburg city official Jerry Eddinger, on Sept. 1, 2022, the Wilhelms applied for a use permit for a “private recreational park and swim club” at the former B&B, a significant change from the permit for the 11-room bed and breakfast that it had been operating under for more than 20 years.

Duiven balked, and refused to issue the permit. His reasoning was that the property straddles two zones in Healdsburg, a Grove Mixed Use (GMU) zone and residential zone R-1-6,000 (one alcohol consumption is permitted between 11am and sundown daily, subject only to legal age restrictions and prohibitions against public intoxication.

Similarly, Themig proposed that the restaurant parklets where drinks are served, such as Valette, Guiso’s, El Farolito and several others downtown, would be allowed to continue serving alcohol on the sidewalk cafes. “Alcohol consumption is a core component of many of the parklets, and staff supports continuing this allowance,” he said.

While he proposed relaxing the rules on public consumption for the dwelling unit per 6,000 square foot lot). Duiven held that the proposal most accurately met the Healdsburg Land Use Code as a “private club, fraternal lodge and meeting hall,” an intensive use not permitted in the residential zone.

Patrick Wilhelm filed an appeal to that ruling, which came before the city’s Planning Commission on Oct. 25, 2022. His argument was in part that since the lot is split into two planning zones, residential and mixed use, the more intensive uses of their project should be allowed as being compatible with the mixed use zone.

The Planning Commission unanimously rejected the appeal to Duiven’s decision, and 10 days later lawyer Carlstrom filed another appeal, whose next stop would have been the city council. However, by withdrawing the appeal, the owners of The Ruse

Plaza, to reflect the relative lack of problems that two years of more lax policies produced, he recommended leaving in place the standing restrictions against public consumption in West Plaza Park.

Themig pointed out that West Plaza Park is underutilized, lacking benches or other places to sit, and the lawn hasn’t been watered during the recent drought year. Therefore, he said, “Really it was just the lack of use in the area” that led to his initial recommendation to return the park to its previous prohibitions.

But in their review, the commission overruled have foreclosed the possibility of suing the City of Healdsburg, since they have not exhausted all other means of administrative remedies, which is a prerequisite to filing a lawsuit. him and voted to give the small park between the former Bear Republic and Foss Creek the same license that the larger, more public Plaza Park would enjoy.

The hearing was likely to be a contentious one.

On Jan. 3, Healdsburg resident Jon Eisenberg sent a letter to members of the city council, outlining several areas of concern about donations made to council members or candidates by the owners of The Ruse, which he characterized as a “payto-play” effort to influence the city council. His letter documented contributions to council members Evelyn Mitchel, David Hagele and Ron Edwards, as well as candidate Susan Graf. The contributions never exceeded 26% of overall contributions to the candidate’s campaign funds, and at least one of the candidates returned some of the contributions.

Mark McMullen, a longtime Healdsburg Jazz board member, suggested during public comment that what’s good for the Plaza would be good for West Plaza Park, and questionied Themig’s rationale that very few people used West Plaza anyway. “Since there have been no complaints, and we don’t have a good survey,” said McMullen, “this is very anecdotal.”

He recounted that during the summer Raven Players production of Shakespeare’s As You Like It, he and friends enjoyed a bottle of wine with the open-air play, to no adverse effects or response. “I think taking things away is not a good thing,” he added.

Commission members agreed, asking why the West Plaza Park was being excluded from the same permissions that Plaza Park would enjoy. “It seems like it’s not heavily utilized; maybe some people go there to get away from the crowds,” said the commission’s new chair, Ron Dobley. “Why not let the status quo go? If we don’t have any issues with the current usage, why not let things go?” Themig backed down. “I think if you incorporate that in your

Eisenberg, a retired appellate lawyer, pointed out the candidates themselves were not guilty of pay-to-play wrongdoing, but the donors who were suspect—Craig Ramsey, Patrick Wilhelm and Jonathan Wilhelm and “persons or entities connected to them or The Ruse” who made the “substantial campaign contributions” to the candidates.

The city council members were generally relieved not to have to go through the appeal, especially those cited by Eisenberg as having received donations from the Wilhelms, Ramsey or their affiliates. “I am relieved,” said Evelyn Mitchell. “I look forward to putting this behind us and to allow everyone to move on.”

According to public financial disclosure documents, Mitchell received $4,200 in campaign donations from the Wilhelms, Ramsey and affiliated entities; she returned recommendation, that it continues in West Plaza Park as well, I don't think it will cause concern from police or our team,” he agreed, and that’s how the parks and rec commission voted.

Although the agenda for the Feb. 21 council meeting was not available by press time, City Manager Jeff Kay said he suspected the alcohol rules would end up on the consent calendar for that meeting.

“The rationale is that it is not a new policy but an extension of something that has been in place for a few years. It was initially implemented under the emergency declaration for COVID, so we are incorporating it into the Municipal Code now that the declaration of emergency is slated to expire,” Kay explained. That means there is unlikely to be open council debate on the topic unless one of the council members chooses to pull it from the consent calendar for a separate vote, as occasionally happens during city council deliberations.

The city council will meet at 6pm on Tuesday, Feb. 21, a day later than their usual Monday meetings, due to the Presidents Day holiday. Council Chambers are located at 401 Grove St., and the meetings are also carried live on facebook.com/ CityofHealdsburg much of it in October, before the election, when The Ruse issue became heated.

David Hagele, who did not run for office in 2022, received $1,000 in donations from the WIlhelms in his 2020 race. He said he was “looking forward to the rest of our agenda on Tuesday…especially the mid-year budget update and the presentation from the library.”

Chris Herrod, who only joined the council this year and was not a recipient of any of the cited donations, was asked why he thought the appeal was dropped. “It’s purely conjecture, but I think the community’s overwhelming objection to the developer’s plans played a key role in their deciding to withdraw the appeal,” said Herrod.

Mayor Ariel Kelley would have recused herself from the appeal hearing anyway, as she lives next door to the subject property on Grove Street.