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Council rescinds prior Golden Eagle action; closed session also directed actions on Old Hospital and Shasta View Inn
Summary
The Mount Shasta City Council, reporting out of closed session, voted to rescind its 2021 action on the Golden Eagle Charter School environmental finding and discussed returning a cleaned former hospital parcel to its owner and seeking a restraining order and collection for unpaid TOT at the Shasta View Inn (formerly the Loge).
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The Mount Shasta City Council on June 3 said it would rescind its Jan. 25, 2021 action affirming the Planning Commission’s approval of the mitigated negative declaration for the Golden Eagle Charter School project and will submit that rescission to the appellate court.
Council reported the rescission will operate as the city’s response to an appellate court remand asking that the trial court direct the city to rescind its prior action. City staff said the charter school operator has declined to pursue the project and is paying attorneys’ fees in the related litigation, and staff recommended ending the matter by rescinding the earlier council action.
The rescission was moved and approved by unanimous voice vote. The motion presented to the council described the measure as “a resolution of the city council of the City of Mount Shasta rescinding the action taken by the city council 01/25/2021 affirming the planning commission’s approval and adoption of the mitigated negative declaration for the Golden Eagle Charter School project.” Councilmembers answered “aye” and no opposition was recorded.
In the same closed-session report, staff summarized two other matters. First, the former hospital site on 201 Eugene was described as cleaned and ready for redevelopment. Staff said the cleanup costs were recovered through contempt findings tied to the owner (referred to as Chang in the closed-session summary) and that, subject to ensuring remaining legal fees are paid, the property likely would revert to that owner.
Second, staff reported that the hotel formerly known as the Loge (now doing business as Shasta View Inn) had repaid several months but that an electronic transfer later bounced and the business again owes $19,202 in transient occupancy taxes (TOT), late fees and fines. Staff said the city notified the district attorney and intends to refile a civil action and seek a temporary restraining order to stop the business from operating while the revenue is pursued.
Why it matters: rescinding the 2021 Golden Eagle action closes a long-running land-use dispute tied to an appellate remand. The Old Hospital and Shasta View Inn items may produce further court filings and enforcement actions affecting property use and city revenue.
Council members, staff and at least one public commenter discussed related consequences in public comment before and after the vote. Johanna Altorfer, a local resident, urged the city to retain street and other assets that had been conditioned on the project and confirmed that, since the project is not proceeding, the city retains ownership of the streets discussed.
The council’s action on the rescission was presented by staff and finalized by a vote taken during the meeting’s regular agenda.

