Although a project approved in the early 1990s by a Calistoga City Council -- the Diamond Hills Estates -- was for a 35 home residential project, the current owners of the property want to switch their project to something that generates more income than a high-end residential complex.

The Calistoga City Council, which as so far voiced optimism about the project -- although members of the public have not -- will consider approving a memorandum of understanding, or MOU, with the developers when it meets for its regular meeting on Tuesday. An MOU is  kind of agreement between the city and the developer agreeing to negotiate in good faith.

If approved, the MOU will get the ball rolling for the city and developer to begin negotiating concessions, or incentives, that will end with the project approval.

Aside from more affordable housing, incentives can include certain infrastructure improvements and even a quality of life fee which are some of the are incentives that helped get the Solage Resort approved a few years ago.

Currently, the project would still consist of about 13 homes, a 11-room destination hotel spread over 36 cottages, a restaurant, ballroom and spa fitness center and about 20 units that are generally equivalent to timeshares, where multiple buyers would own a fractional share of the homes.

The usual environmental reviews also apply. The benefits touted by city staff is an increase in transient occupancy tax and more property tax money for the school district.

The project has its decriers, however, who believe there are a number of eviromental issues that makes the project prohibitive and some believe the project goes against the grain of the city's Genera Plan for development.

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