In late June, Judge Paul Burdick appointed him to review the details of the project with both sides and report back to the court in early August. Specifically, the judge wants the referee to untangle a complicated development contract signed by Save Our Habitat, the city of Capitola and the hotel’s developers, a partnership that now includes Barry Swenson Builders. Since joining the partnership last year, Swenson has been pushing for some changes in the development design to make the venture more profitable. Nagle had his first phone conference with the opposing sides July 9, and on July 16 walked the mansion grounds and then met with representatives to begin the mediation effort.

“I have a sense that we’re making progress toward a mutually agreeable resolution,” said attorney Alexander Henson, who represents developer Barry Swenson Builder, following the July 16 session.

The parties presented what they feel are the most significant issues and will meet again July 23, he said.

Compromise Has Been Elusive

This is not the first time the developers and environmentalists have tried to compromise. In December 2004, the city and its partners worked out a stipulated agreement with opponents to end litigation. The question now is what if any changes can be made to the plans detailed in that agreement.

The city purchased the property in the 1980s, and has since been seeking a way to restore the 1920s 22-room mansion. In the late ‘90s, the city asked private developers to submit ideas, and eventually signed a development contract with the Rispin Partners.

In April this year, the city council approved a 25-room hotel, a three-room spa facility, a small restaurant, restored garden and reflecting pool, and enhanced monarch butterfly habitat. With more than $3 million in the city’s redevelopment funds, Swenson is set to build the project for Rispin Partners.

Portions of those plans violate the agreement, according to Save the Habitat, a local group interested in preserving the riparian corridor along Soquel Creek and restoring a monarch habitat.

It brought the matter back to court after the city’s April approval of changes in development plans.

The developers and city describe the changes as minor and necessary for the plan to go forward. These include relocating a sewer line, moving a transmitter and making adjustments to handicapped access. Save the Habitat wants proof that the changes are necessary, not just desirable, attorney Bill Parkin has said. He also has noted the project has grown by 4,000 square feet.

That’s where Nagle comes in. A former attorney, he has worked for 13 years as a professional mediator and master specialist, one of a group of “qualified neutrals” that are hired to take an unbiased look at complex debates.

Nagle was recommended by Capitola’s attorney John Barisone and selected by Burdick for his mediation expertise.

Capitola City Council agreed at its July 9 meeting to have staff begin the development process. It recommended preparing the property according to undisputed elements of the agreement.

Council held off on another decision that could impact the property until the mediation process is complete.

On June 26 it held a public hearing to consider modifications to the conservation easement it created as part of the original stipulated agreement, but the council will not make its decision until the legal matter is settled, said Barisone.

Members had requested the hearing go forward while long-time redevelopment director Juliana Rebagliati, who has been hired by Santa Cruz, was still on staff.