Sonoma County zoning board allows a path forward for historic Freestone Hotel redevelopment

A project in the works since 2021 to redevelop a historic Sonoma County building isn’t dead yet.

The county zoning board decided Thursday not to deny plans for the Freestone Hotel despite a county staff recommendation. Its owners, among whom is prominent Sebastopol restaurateur Lowell Sheldon, instead will be sent back to the drawing board.

The project has drawn intense scrutiny from some residents concerned about protecting the character of the 148-year-old building and the surrounding quiet rural town near Bodega and Bohemian highways. Sheldon has attracted his own attention after a series of allegations that he sexually harassed employees among other accusations.

In 2022 and then in September 2023 after a new proposal was submitted, Permit Sonoma staff advised Sheldon and his partners to withdraw their project application or face recommended denial in front of the Sonoma County Zoning Board of Adjustments, as was the case Thursday.

From the department’s perspective, the proposed redevelopment exceeds constraints set out in 1989 to protect agricultural and scenic resources in the area under Sonoma County’s General Plan.

The permit application entails a five-room bed and breakfast and walkable gardens with a 900-square-foot outdoor wine bar, as well as a wine shop and gift shop that would operate Friday through Sunday.

Planning staff emphasized during the meeting Thursday that the project — the wine bar and retail space in particular — conflicts with land use policy for the area that expressly limits opportunities for new commercial development.

A number of people in public comment and in letters of opposition echoed the sentiment, raising concerns about impacts to groundwater and the environment, limited existing public services, as well as traffic and noise.

Studies accompanying the application indicated minimal changed impacts to the community and environment, but some community groups questioned those analyses and presented different statistics.

At the meeting, Sheldon called the project “extremely limited” and noted the many uses of the historic property over time, from lodging to private residence to an antique shop and plant nursery. He argued the redevelopment would revitalize the site and be a boon to the area.

Supporters of the project lamented the building’s longtime under-utilization and highlighted the potential boost to local tourism and the area’s economic vitality.

Zoning board members expressed tentative support for the redevelopment but acknowledged it likely didn’t conform with county regulations as is. After three hours of presentations and public testimony, the board unanimously voted to direct owners to work with permitting staff to adapt the project and come back with a new proposal at an undetermined date.

While the discussion Thursday focused squarely on permitting policy questions, outside the confines of the zoning board, some have rallied against the project because of the accusations of misconduct against Sheldon.

“We are extremely concerned that new Freestone Hotel owner Lowell Sheldon will continue his predatory and abusive behavior in the setting of his proposed project that includes a liquor license & hotel rooms,” said a statement on a website titled “Keep Lowell Out of Freestone.” An associated petition has 811 signatures.

After accusations by former employees of inappropriate workplace behavior, as well as an allegation of sexual assault surfaced in fall 2021, Sheldon, who was celebrated for pioneering Sebastopol’s new restaurant scene, cut ties with his three restaurants but stayed on as partner in the Freestone Hotel project.

An effort to open a new restaurant and wine bar, Piala, the next year, led to months of heated debate in front of the Sebastopol Planning Commission and an unusual arrangement in August 2022. The operation’s liquor license approval hinged on Sheldon agreeing to certain conditions, including that he not manage employees directly or consume or serve alcohol at the business.

In October, Sheldon petitioned the city of Sebastopol to drop those restrictions. In a hearing on the issue, he said the city had no business regulating the day-to-day operation of its businesses. As to the allegations against him, he emphasized then that he’d never been convicted of a crime and said “this is the core principle of the ‘Me Too’ movement: Accuse people of the worst, knowing that you don’t need to prove anything and the impact will be lasting.”

Still, Sheldon has been able to forge ahead with new business ventures.

Sebastopol commissioners adjusted a restriction on Piala’s alcohol permit, though most remain in place at least for another year. In addition to the Freestone project, last fall, he also opened Townes Restaurant & Bar in the hulking downtown Santa Rosa space formerly occupied by Third Street Aleworks.

The fate of the Freestone Hotel is yet to be determined.

You can reach “In Your Corner” Columnist Marisa Endicott at 707-521-5470 or marisa.endicott@pressdemocrat.com. On X (formerly Twitter) @InYourCornerTPD and Facebook @InYourCornerTPD.