It won't surprise me if they sue the developer for legal fees or the State of California will pay.
I don't know how the developer could be expected to pay . . . they did the Environmental Impact Statement, and Lake County approved it. I believe the suit was that Lake County had approved it without properly considering the fire danger. Maybe the state was trying to avoid holding the bag on the legal fees and left it to the County?
I cannot imagine how much $ has gone into this project [designers, planners, lawyers, environmental consultants] to get this result. It's easily in the eight figures just from the people I can count. And that's without taking into account the nine figures the client paid to buy the land to do the project!
It should be noted, though, that all of the controversy is about the development, not the golf. The only problem there is that the expense of building the golf never made any sense unless there was a pretty big development behind it.