American Canyon Land Plan Faces Lawsuit Over Boundaries

NAPA VALLEY, CA — American Canyon plans to expand boundaries and help build another route past congested Highway 29 cleared a hurdle this week, although the plan still faces stiff challenges from local developers.

Napa County’s Local Agency Formation Commission (or, LAFCO) approved adding nearly 282 acres of former vineyard land to American Canyon's control.

The proposed annexation includes roughly 241 acres associated with Hess Persson Estates, formerly The Hess Collection, and about 40 acres belonging to the Laird family.

Nearby developers who want better road access are challenging the expansion agreements in court.

Watson Ranch developer Terrence McGrath sued in court through two of his companies, American Canyon I LLC and Napa Valley Ruins & Gardens LLC.

Major Step

The proposed Hess/Laird annexation could reshape American Canyon’s northern edge, opening hundreds of acres to future development and helping create an alternative to Highway 29 bottlenecks.

The proposal recently cleared a planning step after LAFCO added the lands to American Canyon’s "sphere of influence."

But McGrath argues that the city expanded its urban limits without required voter approval, environmental review, or pre-zoning, according to a court-record summary.

The dispute surfaced at the April 21 council meeting. Attorney Skyler Sanders, representing American Canyon I LLC, argued that the city could not change its 2008 urban limit line before January 1, 2030, without a public vote.

City Attorney Teresa Highsmith disputed that interpretation, the American Canyon Current reported.

The road debate presents another question, namely which connection should come first.

McGrath has advocated extending Marcus Road to Watson Lane to give the development more direct access to Highway 29.

City officials prefer Newell Drive as a longer-term alternative, according to the Current.

Meanwhile, development plans remain separate from the boundary decision.

Napa County’s 2024 Hess/Laird planning report proposed industrial zoning but included no specific buildings or development project.

Future development would require additional review.

Napa LAFCO manages local government boundaries. The agency's five regular members include two county supervisors, two city representatives selected from Napa County’s five cities, and one public representative.