from what I remember, Khosla and his lawyers were real jerks to the county and throughout the trials but I think their biggest problem was he has to pay for a relatively expensive liability insurance policy for public passage on the private access road that runs on his property, the only "easy" access to Martins Beach. The previous owners just sort of let things fly w/o insurance.
If the road was owned by the county and he gated it somehow he wouldn't have a leg to stand on but the problem is more nuanced ... Should he personally have to incur a large cost to maintain a public good b/c of proximity? It does seem arbitrary. A better man might sell the road to the county or come to some other compromise but he's become obsessed with the principle of the matter.