Developer plans legal challenge
Butterfly Village project rejected

Posted June 6, 2007

By JIM JOHNSON
Herald Salinas Bureau

The controversial Rancho San Juan-area Butterfly Village project was soundly rejected by voters Tuesday night. In early returns, Measure D was being easily defeated in the county's special election. Measure D asked voters if they wanted to approve the 671-acre, 1,147-home, golf-resort subdivision north of Salinas.

Backed by developer Moe Nobari and the HYH Corp., the Butterfly Village project was approved by supervisors in 2005. The project's approval came just a day before voters overwhelmingly turned down a much-larger, 2,500-acre version of the proposed development.

Paula Lotz, campaign manager for Measure A, whose supporters opposed the Butterfly Village project, said the results send a message to supervisors who approved two projects despite heavy voter opposition to
development in the area.

"That's great — Rancho San Juan's gone, and the people have spoken," Lotz said. "The supervisors are out of
step."

This year's measure, which wasn't backed by any formal campaign, was all but lost in the hubbub over the three general plan-related measures on Tuesday's
ballot. Supporters of Measure A, the general plan initiative, campaigned against Measure D, but most opponents of the initiative who backed the
supervisor-approved general plan update embodied in Measures B and C chose not to endorse the project.

Attorney Mark Blum, who represents the HYH Corp., said the measure was "unfairly" linked to the initiative by LandWatch.

"The loss of Measure D is to be expected in light of the flagrant LandWatch campaign misrepresentations," Blum said. "The LandWatch referendum will now be reviewed by the courts. I am confident the courts will determine it is legally ineffective to overturn the Rancho San Juan Specific Plan, because the plan was adopted pursuant to a court order." Failure of Measure D means the county could potentially be liable for millions of dollars in damages to Nobari and the HYH Corp. as a result of delays in processing project applications for the Rancho San Juan property. Nobari won a 2001 court ruling that said the county had improperly delayed processing his development application and directed the county to adopt a specific plan for development of the area. Project backers have estimated the county's potential liability at as much as $100 million.

Opponents of the project claimed it would cause massive traffic problems in an already congested area and had an inadequate water supply. Project supporters pointed to its creation of affordable housing and jobs, and its provisions for traffic and water improvements.

Following the supervisors' approval of Butterfly Village, opponents circulated a petition to place the project on the June 2006 ballot. After supervisors
initially approved placing the referendum on the ballot, they withdrew it because the petitions were not translated into Spanish following a court ruling.
Opponents sued and a judge ordered the measure placed on the ballot earlier this year.

Jim Johnson can be reached at 753-6753 or jjohnson@montereyherald.com.