Mount Shasta council rescinds Golden Eagle environmental approval; discusses Old Hospital ownership and seeks restraining order for Shasta View Inn

The Mount Shasta City Council on Tuesday voted to rescind the council's January 25, 2021 action affirming the Planning Commission's approval and adoption of a mitigated negative declaration for the Golden Eagle Charter School Project.

The rescission was adopted by majority voice vote after a short staff report and one public comment. John Kenny, speaking for staff, summarized the closed-session items and described the court posture of the Golden Eagle appeal: "Where it stands now, after the appellate court decision, the appellate court will eventually remand it to the trial court with a direction to issue an order to the city, a writ to the city to rescind its action." The council's resolution will be sent to the court to satisfy that direction.

The vote on the resolution (described in the meeting as CCR-25-27 and discussed as agenda item 17) passed on a council voice vote with no recorded opposition.

Why it matters

Rescinding the earlier action removes the city's prior affirmation of the environmental finding for the Golden Eagle project and follows an appellate-court directive. Staff said the charter school itself has no interest in pursuing the matter and is paying attorneys' fees; the resolution is intended to close the local administrative posture so the courts can finalize the matter.

What the council reported

Staff said three matters were discussed in closed session. Beyond the Golden Eagle appeal, John Kenny reported on the former hospital property at 201 Eugene (referred to in the meeting as the Old Hospital). He said the site has been cleaned and that, because cleanup was funded in part through contempt findings against the owner, staff recommended the property ultimately revert to that owner after the owner pays outstanding legal fees. "...it really ultimately the property should be given back to that owner," Kenny said, adding that final court hearings must confirm payment of remaining legal fees.

On a separate enforcement matter, staff reported that the lodging business known as the Loge (operating under the name Shasta View Inn) had fallen back into delinquency after a prior electronic transfer bounced. "It turns out they made an electronic transfer. It bounced. So we have $19,202 that they owe again in TOT and late fees, and in fines," Kenny said. Council discussed notifying the district attorney and re-filing a civil action; in closed session the council directed staff to seek a temporary restraining order to halt operation so the city can preserve revenue owed.

Public comment and clarification

Resident Johanna Altoorp addressed the Golden Eagle matter during public comment, focusing on whether streets and other city assets associated with the project had transferred to the school. Altoorp asked whether paved streets such as Cedar Street and unimproved "paper streets" had reverted to the city after the project stalled. "As long as the streets belong to the city, I'm good," she said. Staff replied that, because the project is not proceeding, the streets remain city property and no transfer occurred.

Next steps

Staff said it will transmit the rescission resolution to the court to satisfy the appellate remand and close the administrative portion of the Golden Eagle matter. For the Old Hospital property, staff said final court proceedings will determine reversion and a requirement that the owner pay outstanding legal fees. On the lodging enforcement, staff said it will refile the civil action and seek a temporary restraining order to stop operations and pursue the delinquent TOT and fees.

Council action (at-a-glance)

- Motion: Adopt resolution rescinding the Jan. 25, 2021 council action affirming the Planning Commission's approval and adoption of the mitigated negative declaration for the Golden Eagle Charter School Project (resolution referenced in the meeting as CCR-25-27; agenda item 17). Seconded. Vote: unanimous voice vote; no opposition recorded.

- Direction (no formal ordinance adopted in open session): Staff directed to pursue final court processes relating to the Old Hospital property to permit reversion to the owner if legal conditions are satisfied and to require payment of outstanding legal fees.

- Direction (no formal ordinance adopted in open session): Staff authorized to refile enforcement action against the lodging business operating as Shasta View Inn (the Loge) and to seek a temporary restraining order to cease business activity pending recovery of $19,202 in unpaid transient occupancy taxes, late fees and fines.