Healdsburg Councilwoman Approved of Montage Resort Projects Despite Property Ownership

Councilwoman Ariel Kelley's 2025 Form 700 indicates she owns real property purchased from Sonoma Luxury Resort LLC aka Montage Healdsburg (Saggio Hills)

Healdsburg Councilwoman Ariel Kelley has repeatedly directed and voted on taxpayer-funded realty and renovation projects for which she has a vested financial interest. After acquiring Montage Healdsburg real property from her father, Councilwoman Kelley failed at recusal from budgeting and discussions relating to the lot.

Kelley indicated on her 2025 statement of economic, reportable financial interests for the fiscal year 2024, that she owns real property acquired from Sonoma Luxury Resort LLC aka Montage Healdsburg (Saggio Hills). She did not indicate the date the property was acquired, or possibly disposed.

On July 7, 2021, Wine Country Times published the following:

On July 7, Steven Ungerleider (trust) purchased a property at 135 Woodlands Drive, Healdsburg from Sonoma Luxury Resort LLC for $1,353,000.

Mr. Steven Ungerleider is Ms. Kelley’s late father. It appears she inherited the property in trust following his March 18, 2023 death.

Zillow shows the home was last sold on July 7, 2021, listed for sale once more on November 19, 2024, removed listing on May 1, 2025 and relisted for sale on May 20, 2025.

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Amidst the pending sale of Ms. Kelley’s property located at 135 Woodlands Drive, she failed to recuse herself from agenda items which present a conflict of interest.

On June 3, 2024, the Healdsburg Council minutes stated:

Councilmember Kelley expressed her gratitude to Finance Director Edgar and City staff for ensuring a smooth budget adoption process.

On a motion by Councilmember Kelley, seconded by Councilmember Edwards, adopted Resolution No. 64-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG ADOPTING THE FISCAL YEAR 2024-25 BUDGET.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)

On a motion by Councilmember Kelley, seconded by Councilmember Edwards, adopted Resolution No. 65-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG ADOPTING THE FISCAL YEAR 2025-26 BUDGET.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)

On a motion by Councilmember Kelley, seconded by Councilmember Edwards, adopted Resolution No. 66-2024 titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEALDSBURG ADOPTING THE 2025-29 FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM.” The motion carried on a unanimous roll call vote. (Ayes 5, Noes 0, Absent - None)

The approved biennial budget included capital improvement projects and budgeting for Montage properties including an affordable housing development, $13M+ 36-acre Saggio Hills Park, and a fire substation.

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On March 7, 2022, Healdsburg City Attorney Samantha W. Zutler sent the following Request for Advice to the FPPC.

Within the same month that Ms. Kelley’s father purchased his property from Montage, the City founded the Healdsburg Parks Foundation.

As a Foundation Director, Vice Mayor Kelley intended to donate funds to the City to be used for the park in the Montage development.

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The Fair Political Practices Commission (FPPC) is currently investigating Kelley’s potential violations regarding conflicts of interest.

Being that Councilwoman Kelley is an ‘attorney’ who served as a director to local agencies for numerous years, why does she struggle with understanding conflicts?