Sierra's Dyer Mountain Files Bankruptcy

Published on Apr 2, 2008 - 9:28:12 AM

By: Tom Mooers, Sierra Watch

Westwood, CA (Lassen County), April 2, 2008 - The biggest development proposal in the Sierra Nevada came to a halt when proponents Dyer Mountain Associates filed for bankruptcy in the Federal Bankruptcy Court in San Francisco March 27.

"Now that the threat of development is lifted, we look forward to working to secure permanent protection for Dyer Mountain and its incredible natural resources," said Steve Robinson of Mountain Meadows Conservancy.

Dyer Mountain Associates (DMA) began pursuing development on remote Dyer Mountain in Lassen County nearly ten years ago. With the promise of a new ski resort and local jobs, a version of the project was initially approved by a voter initiative in 2000. But the scope of the project ballooned into a vague plan for 4,000 new homes, three golf courses, and the ski resort on 7,000 acres of forest lands.

Developers had promised ski operations by November 2007, but the project mired in deepening legal and financial turmoil; DMA was subject to at least five lawsuits and two scathing court orders. In May 2007, for example, San Francisco Superior Court assigned a majority stake in DMA to a court appointed receiver, stating that DMA "...is in default of outstanding loans to creditors, payroll, rent and other financial obligations."

DMA continued to push its project through the planning process, and, in September of 2007, Lassen County gave its approval. A powerful coalition of local, regional, and international conservation groups filed suit. Mountain Meadows Conservancy, Sierra Watch, and Sierra Club petitioned Lassen County Superior Court to overturn the county's approval, contending the proposed development was not only irresponsible but also illegal.

In January 2008, creditors foreclosed on the property itself. With last week's bankruptcy filing, DMA seeks to suspend foreclosure and gain protection from remaining debt, including nearly $200,000 in back taxes owed to Lassen County.

"Folks in Lassen County and throughout California recognized that this was not the best way to plan the future of the Sierra Nevada," said Tom Mooers of Sierra Watch. "Now Dyer Mountain is becoming another example of how we can work together to defend our favorite Sierra places."

In the months ahead, conservationists will seek an opportunity to bring all parties to the table to seek a conservation resolution for Dyer Mountain. "Bankruptcy might put a halt to the DMA development proposal, but it doesn't achieve our goal," said Robinson. "We look forward to sitting down with county officials, creditors, conservation allies, and others to secure permanent protection of the property itself."

The Mountain Meadows Conservancy's mission is to conserve and enhance the natural beauty and environmental health of the Mountain Meadows watershed; protect its significant Mountain Maidu burial and cultural sites; and provide recreation and public access for generations to come. For more information, visit www.mtmeadows.org.

Sierra Watch defends the incomparable natural resources and unparalleled quality of life in the Sierra Nevada mountain range. For more information, call (530) 265-2849 or visit www.sierrawatch.org.

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