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Chateau project sent to city council

Jack Barnwell
jbarnwell@tahoedailytribune.com

South Lake Tahoe’s planning commission revisited the Chateau at the Village project during a special meeting on Thursday, voting 5-0 to recommend a major design review approval to the city council.

The proposed plan, which needs city council approval, will be the second part of the Chateau project.

If everything goes according to plan, developers expect to begin construction in the summer. It includes a three-story mixed used development at the corner of Highway 50 and Friday Avenue.



The ground level would contain approximately 19,500 square feet of retail, while 32 condominium hotels would occupy the upper levels.

The commission delayed its vote on April 9 at the request of the applicant and city staff because it wanted to address several continuity issues. Staff cited that conditions of approval from past documents should be streamlined and integrated into the overall document for continuity.



Changes to the plan include removal of planned “lake passage” public space, which will be replaced with fire pits and public seating; removal of an initially proposed pedestrian overpass over Highway 50 because of lack of funding and improvements; and relocating a parking garage to the rear of the site because of various complications. The city would need to allocate 5,000 square feet of commercial floor area designated for the project in the Stateline/Ski Run Community Plan and an additional 1,307 square feet from the its Community Plan Recharge pool.

The planned hotel units will be counted as tourist accommodation units and can be privately purchased. Week-to-week or short term leases will still net transient occupancy tax (TOT) revenue. Planning commissioners had concerns about the new project, including parking and pedestrian safety.

The current phase, designated Project B, Phase 1, would include 73 parking spaces on site and an additional 51 in a garage.

Commissioners Craig Woodward and Dale Rise peppered staff with questions about the parking.

“It seems to me that there is not enough even with a new lot on the back of the parcel,” Woodward said.

Planning Manager John Hitchcock said the environmental impact report said a shortfall would only occur if a large event occurred should a planned convention center in the overall project ever be built.

At that point, a special use permit would be needed and the city’s parking garage across the street could accommodate that.

Commissioner Rise pointed out that a traffic plan states it would be impractical to use the parking garage between June and September for large events.

Commissioners Shannon Eckmeyer and Scott Blumenthal asked about pedestrian safety. Both said they were unhappy about the uncertainty over who would implement pedestrian improvements and removal of the overpass.

“I think the applicant should be held accountable for implementing a pedestrian scramble or improvements on Friday Avenue,” Eckmeyer said.

Blumenthal said “chaos would ensue” if something concrete is done to better define traffic issues at the site.

Blumenthal also inquired about road abandonment and parcel mergers. The initial plan required merging of 29 parcels but the plan shifted to merging only as needed.

Shawna Brekke-Read, the city’s director of development services, said there was a process for street abandonment the current or future developers can go through.

Lew Feldman, a South Shore attorney representing the project since 1994, said there was a lot of uncertainties on some areas, and some economic realties with the entire project.

The project has gone through fits and starts since it received initial approval in 1998. Its environmental impact report was amended in 2006 and 2007. Some construction commenced before the developer ran short on funds and the recession hit.

Tahoe Stateline Venture is a subsidiary of Walnut Creek-based Owens Mortgage Investments, who foreclosed on the original developer Randy Lane.

Some of the entire project, which would be included in later phases, included a 40,000 square foot convention center that could enhance the city’s capacity for large events.

“It’s a great optic to speculate on what will happen with the convention center,” Feldman said. “There was $55 million public subsidy that is no longer on the table.”

The $55 million public funding option vanished when South Lake Tahoe’s redevelopment agency was dissolved by the state in 2012 along with the rest in California.

As far as parking issues and pedestrian improvements, that should be approached as future phases come before the city.

Traffic and pedestrian improvements on Highway 50 were impractical until the fate of the “Loop Road” or Highway 50 South Shore Community Revitalization Project, which would realign Highway 50 near the California-Nevada state line.

“Highway 50 is such a moving target right now,” Feldman said. He added Tahoe Stateline Venture and Owens Financial weren’t the typical developer. A bank could just wait until another developer purchased the project.

“TSV is not your typical project it is trying to pick up the pieces of a failed loan and is doing the right thing,” Feldmand said.

This phase would likely be the last part that is develop before they attempt to find another owner.

As far TSV funding even a portion of pedestrian improvements, that should be incumbent on Caltrans because Highway 50 is a state road.

One member of the public disagreed with the process being recommended for approval. Rick Edwards, a former business owner who said his property had been affected when the original developer couldn’t complete the project. Edwards implored the commission to not recommend the project for approval until Owens Financial negotiated a settlement with affected business owners. Another sticking point was it appeared Chateau project has deviated from its 2007 addendum. Edwards said alterations of parcel mergers, street abandonment, and the abolishment of a pedestrian overpass and the unlikelihood of a convention center demanded another addendum to the environmental impact report.


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