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ENLARGE
A rendering shows how the proposed convention center-hotel would look from the lake.
And for now, it's up to the property owners.
In front of about 100 people, the South Lake Tahoe Redevelopment Agency on Tuesday unanimously approved the basic development criteria it would agree on in having its proposed $325 million convention center complex built.
The agency, which comprises the City Council members, also sided with the Lake Tahoe Development Co., formed by Falcon Capital's Randy Lane of Stateline and DGD Development's John Serpa of Carson City.
The construction would be paid for by the developer, and the city would chip in a portion of the property and motel-room tax revenue, among other investments.
After changing interested builders and plans, the city needs a signed-on developer and buy-in from the more than 40 businesses to build a complex with a 300,000-square-foot condominium-hotel, 200,000-square-foot convention center and 34,000 square feet of retail space. The 12-year-old concept, which is set to start development in spring 2007, has changed enough to legally require the city to solicit responses from the property owners. For one, the original plan with 36 parcels in it called for a traditional hotel.
One businessman in the 16-acre wedge near Stateline between Highway 50, Cedar, Friday and Poplar avenues gave the latest concept a thumbs up.
In front of about 100 people, the South Lake Tahoe Redevelopment Agency on Tuesday unanimously approved the basic development criteria it would agree on in having its proposed $325 million convention center complex built.
The agency, which comprises the City Council members, also sided with the Lake Tahoe Development Co., formed by Falcon Capital's Randy Lane of Stateline and DGD Development's John Serpa of Carson City.
The construction would be paid for by the developer, and the city would chip in a portion of the property and motel-room tax revenue, among other investments.
After changing interested builders and plans, the city needs a signed-on developer and buy-in from the more than 40 businesses to build a complex with a 300,000-square-foot condominium-hotel, 200,000-square-foot convention center and 34,000 square feet of retail space. The 12-year-old concept, which is set to start development in spring 2007, has changed enough to legally require the city to solicit responses from the property owners. For one, the original plan with 36 parcels in it called for a traditional hotel.
One businessman in the 16-acre wedge near Stateline between Highway 50, Cedar, Friday and Poplar avenues gave the latest concept a thumbs up.
"I'm excited about this project finally moving forward," Rick Ed wards, who owns the Driftwood Inn and Rainbow Lodge, told the agency members. Edwards has long expressed interest in being bought out during the process, delaying improvements to his property while anticipating the next wave of redevelopment called Project 3.
As it stands, here are the preliminaries in the private-public partnership that has been handed off from Harveys Casino Resort, Harrah's Lake Tahoe and Marriott:
-- Lake Tahoe Development Co., which has expressed a strong interest in building the project, was brought in by Marriott Ownership Resorts to do the work. Marriott just opted out of the project after holding a 9-month-old exclusive negotiating agreement with the city - which expires Friday. Phone calls to Marriott executives were not returned.
-- The developer would foot the construction costs to build a 3,500-seat convention center and entertainment venue, hotel and retail space. It would also pay for a marketing study to evaluate the viability of the convention center project.
-- Upon completion of the project, the city would agree to a portion of property taxes being used to reimburse the developer at an estimated total of $15.7 million. In turn, the city would take possession of the convention center that would be privately managed. Unlike the Marriott-anchored Project 1 at Park Avenue, the city would not sell bond anticipation notes to investors to fund construction. The developer would take the responsibility for that, in addition to property acquisition costs, council subcommittee member Hal Cole said during the meeting. He served on the subcommittee with agency member John Upton.
South Shore attorney Lew Feldman, who represents Randy Lane, listened intently to the presentation.
In theory, the selected hotel company - which Feldman thinks will emulate the Four Seasons at Whistler - would also be asked to chip in $11 million to participate.
As it stands, here are the preliminaries in the private-public partnership that has been handed off from Harveys Casino Resort, Harrah's Lake Tahoe and Marriott:
-- Lake Tahoe Development Co., which has expressed a strong interest in building the project, was brought in by Marriott Ownership Resorts to do the work. Marriott just opted out of the project after holding a 9-month-old exclusive negotiating agreement with the city - which expires Friday. Phone calls to Marriott executives were not returned.
-- The developer would foot the construction costs to build a 3,500-seat convention center and entertainment venue, hotel and retail space. It would also pay for a marketing study to evaluate the viability of the convention center project.
-- Upon completion of the project, the city would agree to a portion of property taxes being used to reimburse the developer at an estimated total of $15.7 million. In turn, the city would take possession of the convention center that would be privately managed. Unlike the Marriott-anchored Project 1 at Park Avenue, the city would not sell bond anticipation notes to investors to fund construction. The developer would take the responsibility for that, in addition to property acquisition costs, council subcommittee member Hal Cole said during the meeting. He served on the subcommittee with agency member John Upton.
South Shore attorney Lew Feldman, who represents Randy Lane, listened intently to the presentation.
In theory, the selected hotel company - which Feldman thinks will emulate the Four Seasons at Whistler - would also be asked to chip in $11 million to participate.
And Douglas County's casino corridor may be asked kick in tax dollars to the California project, but that may require intervention from the Nevada Legislature.
The city would place a deed-restriction clause in the project that would require the condo-hotel units be rented out a certain number of days. The city wants to collect transient occupancy tax from the visitors. It may also raise the rate of TOT for the project area from 12 percent to 13.
The property owners may also form a Mello Roos district that allows them to impose a tax on themselves to pay for public improvements. Local governments, which lament Proposition 13's limiting effects on property taxes, want all the help they can get in tapping into growing property values.
City leaders believe once it's developed, the property will be worth over five times what it is now, Cole noted, alluding to property value appreciation in South Lake Tahoe. To many, the investment was hard to argue - but there were words of caution from those in the know.
Former Mayor Tom Davis told the agency he would recommend the panel invest the approximately $500,000 on disaster insurance like he recommended during his term for the Park Avenue plan. He added the panel may want to go larger on the number of seats in the convention center. Other than that, he was impressed with the plan.
"I don't see a down side to this. I think it's fantastic. Congratulations. Let's move forward," Davis said.
Still, the pending issues and magnitude of the project brought uncertainty and criticism among others.
The city would place a deed-restriction clause in the project that would require the condo-hotel units be rented out a certain number of days. The city wants to collect transient occupancy tax from the visitors. It may also raise the rate of TOT for the project area from 12 percent to 13.
The property owners may also form a Mello Roos district that allows them to impose a tax on themselves to pay for public improvements. Local governments, which lament Proposition 13's limiting effects on property taxes, want all the help they can get in tapping into growing property values.
City leaders believe once it's developed, the property will be worth over five times what it is now, Cole noted, alluding to property value appreciation in South Lake Tahoe. To many, the investment was hard to argue - but there were words of caution from those in the know.
Former Mayor Tom Davis told the agency he would recommend the panel invest the approximately $500,000 on disaster insurance like he recommended during his term for the Park Avenue plan. He added the panel may want to go larger on the number of seats in the convention center. Other than that, he was impressed with the plan.
"I don't see a down side to this. I think it's fantastic. Congratulations. Let's move forward," Davis said.
Still, the pending issues and magnitude of the project brought uncertainty and criticism among others.
Stephen Reinhard, who's running for Tahoe's District 5 El Dorado County supervisor seat, suggested the agency refrain from using Park Avenue as an example of a successful redevelopment plan.
He wasn't alone. Ed Mosur took issue with the lack of parking in the area.
"I think it's important. We can't have another parking garage fiasco," he said.
Cole countered on the points skeptics raised by reiterating how the city will own, not subsidize, the project. And no general fund money will go into the plan.
"With the (property tax increment), all we're asking is to pay for something we're going to own," he said. "I still think this project will be the savior of our tourism industry."
Mayor Kathay Lovell liked the idea the project will create new jobs for the area.
"Now I see the light," she said.
He wasn't alone. Ed Mosur took issue with the lack of parking in the area.
"I think it's important. We can't have another parking garage fiasco," he said.
Cole countered on the points skeptics raised by reiterating how the city will own, not subsidize, the project. And no general fund money will go into the plan.
"With the (property tax increment), all we're asking is to pay for something we're going to own," he said. "I still think this project will be the savior of our tourism industry."
Mayor Kathay Lovell liked the idea the project will create new jobs for the area.
"Now I see the light," she said.
