City Taking Steps for Loch Lomond Development to Proceed

The San Rafael City Council on Monday is expected to vote on a resolution that would form a special tax district at the Loch Lomond Marina to pay for publicly accessible park improvements that are required by 2007 project approvals.

The Loch Lomond development proposal caused a storm of controversy when it was before the city but little has been done since in terms of site construction due largely to the sagging economy and the fact the property owner has it up for sale.

The city council last month conducted a public hearing to form a Mello-Roos taxing district on the marina site now owned by Oaktree Capital, a private equity firm in Los Angeles.

The proposed development, known as the Village at Loch Lomond Marina, calls for 81 residential units, 22,250 square feet of neighborhood commercial space, marina support and bay front park and conservation measures.  The approved project does not change the current marina berth and public launch operations, according to a city report.   

Most recently, Oaktree filed for a grading permit to begin an earth filling process necessary to raise property grades and comply with flood zone requirements, according to Paul Jensen, planning manager for the city.

Oaktree Capital did not return phone calls and maintains a policy of not responding to media inquiries, a company spokesperson said. 

Approvals for the project will be valid until August 2012, Jensen said, adding that officials have met with several prospective buyers but there is currently no new owner or developer in place.

Mill Valley based Thompson Dorfman Partners shepherded the project through a complicated permit process that included regulatory agencies such as the U.S. Army Corps of Engineers, the Bay Conservation and Development District and the state Regional Water Quality Control Board.

The company was considered a potential buyer but Jensen said it is no longer in the picture. Company principal Bruce Dorfman could not be reached for comment.

Under the terms of the city's approval, the tax will be paid by property owners in the special district, which only includes Oaktree now but will be required of future property owners, Jensen said, adding that it will not start until improvements are made.

"They haven't found a developer and that would be a trigger for those improvements, Jensen said.

The council meets at 8 p.m. Monday at its chambers at 1400 Fifth Ave.