Scandal-hit Cornerstone Sonoma set for comeback after $10.6M rescue deal

A once-bustling Wine Country destination that fell into disrepair amid scandal and financial collapse is getting a second chance — and locals are hoping the revival sticks.

Cornerstone Sonoma, a nine-acre retail and event complex long dubbed the “gateway to Wine Country,” is preparing for a grand reopening this week after new ownership stepped in to rescue the neglected property from years of decline tied to its former operators’ legal and financial troubles, the Press Democrat reported.

The site, which once drew crowds for its gardens, tasting rooms, restaurants and weddings, had deteriorated significantly in recent years.

Businesses shuttered, landscaping went untended and signature features like its lily pond were left stagnant as the real estate empire behind it unraveled.

“The Mattsons left this place to just rot,” Jobin Singh Randhawa, whose family’s firm, Highland Pacific Capital, purchased the property for $10.65 million in December told the Democrat.

Now, crews have been working to reverse that decay.

Overgrown hedges have been trimmed, ponds cleaned, lawns restored and event spaces refurbished in a bid to recapture what was once described as “Sonoma’s Disneyland.”

“We took it over as a way to give it back to the community,” Randhawa said. “The goal is not to change it much, but to bring it back to what it was pre-pandemic.

“As soon as we closed on the property, people were already reaching out, people who had been there before. I think that shows how much people love the property.”

The property’s downfall is closely tied to the dramatic collapse of its former ownership group, LeFever Mattson, whose co-founder Kenneth Mattson has been accused by federal prosecutors of orchestrating a massive Ponzi scheme that allegedly defrauded investors out of more than $100 million over at least 15 years.

The scandal rippled across Sonoma Valley, where the firm had amassed a sprawling portfolio of properties.

As the business came under investigation and ultimately bankruptcy proceedings, many of its holdings — including Cornerstone — were left in limbo.

The fallout also included a recent settlement in which Mattson’s longtime business partner, Timothy LeFever, agreed to pay roughly $5 million into a fund aimed at compensating investors.

The case, described in court filings as a “tangled web” of dozens of companies and hundreds of properties, left many retirees fearing their life savings had vanished.

Even before the legal troubles peaked, the company’s presence in Sonoma had sparked controversy. Some residents protested the investors’ growing footprint in the region, citing concerns that their conservative views clashed with the area’s more progressive and LGBTQ-friendly identity.

That tension had tangible consequences for Cornerstone. Event organizers and tenants distanced themselves from the property, contributing to a steady exodus of businesses beginning around 2019.

“Unfortunately, once the Mattsons took over, (organizing events there) came to an end, especially for someone who is throwing LGBTQ events. I knew that I could not bring events there (to Cornerstone),” Gary Saperstein, founder of an LGBTQ-focused events group, added.

Now, the change in ownership is being seen as an opportunity to reset both the property’s reputation and its role in the community.

Local business owners and officials say the early signs are encouraging. Meadowcroft Winery, which maintains a tasting room on the grounds, welcomed the transition.

“Their involvement will bring many new community events, new tenants, and a liveliness that has not been seen in years,” said owner Tom Meadowcroft.

The new owners are already working to draw people back, reopening parts of the site with temporary food and beverage offerings while seeking long-term tenants. They’ve also begun outreach to revive major events, including a popular annual LGBTQ wine weekend.

For now, profitability is a secondary concern. “If we’re not making money at first, that’s OK,” Randhawa said. “The goal is to get the property kickstarted.”

Community leaders say the stakes are high. Positioned along a heavily traveled corridor, the site has long been viewed as a key entry point into Sonoma Valley.

“In its heyday, Cornerstone was really thriving and a little community in itself,” said Mark Bodenhamer of the Sonoma Valley Chamber of Commerce. “We’re just hoping they’re finding the right mix.”

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