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Wednesday, April 26, 2006

Burke Creek is back in the spotlight



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A Stateline couple is proposing to build a multi-family, moderate-income housing project on 18 acres called Sierra Colina.
A Stateline couple is proposing to build a multi-family, moderate-income housing project on 18 acres called Sierra Colina.ENLARGE
A Stateline couple is proposing to build a multi-family, moderate-income housing project on 18 acres called Sierra Colina.
An 18-acre parcel in Stateline that has seen multiple projects turned down by Tahoe's planning agency is once again under scrutiny.

Gail Jaquish and Steven Kenninger have submitted a proposal for 41 market-rate condominiums and nine affordable housing units for a project called Sierra Colina Village. The plans are in 30-day initial review by the Tahoe Regional Planning Agency, which regulates development here.

The proposal includes a donation of 10 acres to become deeded open space.

Jaquish and Kenninger have requested a full environmental impact statement, which requires a public comment period. They referred comments to their lawyer Leif Reid.

"As applicants they've requested the TRPA engage the public in that process," Reid said. "They care about this community and they've always been active in the communities where they've lived."

Jaquish and Kenninger have asked the South Lake Tahoe City Council to sell them the remaining 26 building rights they need for the project. The Council discussed the issue and delayed a decision at its April 18 meeting.

The couple has already purchased all 23 available allocations from Douglas County for $1.7 million.

A building allocation is required for all developments in Tahoe. There is a 10-year waiting list for a residential allocation in South Lake Tahoe. However, the city has been saving multi-family allotments for affordable housing.



Sensitive land

Surrounding residents and the Sierra Club have fought development on the parcel for eight years, saying it is raw land that would best be left alone to serve as a natural filter for Lake Tahoe. They have argued that any development would increase traffic in what they believe is an already congested area.

After opposing past projects, the U.S. Forest Service does not find anything wrong with the current proposal.

"We didn't object to anything she was proposing," said Bob Rodman with the Forest Service's acquisitions department, who met with Jaquish. "And we certainly understand the need for affordable housing."

Past proposals included tennis courts, swimming pools and more development near the stream.

Mike Bradford, president of Lakeside Inn and Casino, said the project is clearly a "triple-bottom line winner" that serves the environment, community and business. He cited the affordable housing units and open-space access and said it will draw more people to Stateline businesses.

"At this point, the quality of access is poor, and where there is access, there's been damage to the stream zone," Bradford said.

But some nearby residents say there is no reason to build on pristine land.

"There is no way to justify this in terms of improving Lake Tahoe," said Ann Harmon, a resident of Lower Kingsbury and a member of the Sierra Club. "And that's where we should be heading if we are ever going to save it."

The League to Save Lake Tahoe has not taken a formal position on the property, but questions whether there are ways to meet the affordable housing need without building on vacant land, said program manager John Friedrich.

In 1999, when developers were seeking to build 26 condominium units, attorneys general of both California and Nevada said the project would violate TRPA's code. After six hours of testimony before TRPA's Governing Board, the project failed to pass.

The Forest Service has twice bid to buy the property, once in 1990, and once last year, offering $2.3 million. The property is still eligible for acquisition because it contains sensitive land, Rodman said.

In February, Douglas County Commissioner Tim Smith appointed Jaquish to the county's place-based planning working group. He did not return calls for comment.



Donations

The Tribune reported April 18 that the Jaquish and Kenninger Foundation has donated $30,000 to local charities.

The couple have also donated or raised a combined $274,000 for Republican candidates and election committees in at least 10 states since 1997, according to the Federal Elections Commission.

Their foundation's donations include the Pacific Legal Foundation, which has fought several lawsuits on behalf of property rights advocates in Tahoe.

Their company QMO, based in Nevada, donated $500 to Dennis Crabb's campaign for El Dorado County supervisor in 2005, according to Crabb's disclosures.

Jaquish became a member of the Sierra Club last year.

Jaquish has made a couple of "generous" donations to the League since last fall, Friedrich said.



Zoning

The parcel was once classified "conservation." In 1992, TRPA's Governing Board approved a zoning change to "multi-family commercial."

The 1992 zoning change was made on three conditions: Access to the developed area must not be from Highway 50; development must be at least 200 feet from the highway; and the land would not be eligible for affordable housing bonus units.

Falcon Capital, working on behalf of former owner Goshawk Ridge Developers, asked the TRPA to remove the conditions in 2002.

Sierra Colina has not requested a change to those conditions.



- For related articles, search "Burke Creek" on www.TahoeDailyTribune.com



Timeline:

1972: Burke Creek parcel classified "tourist commercial."

Between 1972 and 1992: Property classified "conservation."

1990: Forest Service attempts to buy parcel. Private investor Richard Welze purchases it for $750,000.

1992: TRPA board approves parcel classification move from "conservation" to "multifamily residential," with several conditions.

September 1999: California and Nevada attorneys general say the proposed subdivision would violate TRPA's code.

January 23, 2000: class actions filed in Florida against Sunterra Corp.'s top executives, including Steven Kenninger, allege accounting fraud.

February, 2000: Trust for Public Land offers $2 million to buy Burke Creek parcel, fails.

March 2000: Goshawk Ridge Developers purchase parcel for $3 million. The company is a group of Incline investors.

2003: Goshawk declares bankruptcy

2005: Bank forecloses on Goshawk

Spring, 2005: Forest Service makes second attempt to buy property. Offers $2.3 million.

April 28, 2005: QMO purchases property for $3.5 million.

May 2005: Kenninger settles Sunterra class action for $4.9 million.

Nov. 29, 2005: Sierra Colina purchases property for $7 million from QMO. Jaquish and Kenninger are sole officers of both QMO and Sierra Colina.

March or April 2006: Application submitted to TRPA for Sierra Colina Village.

April 18, 2006: South Lake Tahoe City Council discusses but delays decision on selling 26 housing allotments to the couple.


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