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City will review developer’s decision to get new theater provider

The South Tahoe Redevelopment Agency will review today if the developer’s decision to deny Wallace Theaters commercial space in the Park Avenue Redevelopment Project was sound.

Trans-Sierra Investments, retail developer for the Park Avenue Project, decided last month to award Resort Theaters of America, a Los Angeles company, the space to operate a six-screen cinema in the new development.

The decision came despite the disposition and development agreement that mandates a reasonable preference be given to businesses that are being displaced by the project.



Wallace Theaters, which operates one screen on Park Avenue and a cinema complex inside the Horizon Casino Resort, is an existing tenant in the project area. Wallace must vacate its Park Avenue building by spring to make way for demolition and new development.

David Lyon, marketing director for Wallace Theaters, refused to comment on the situation.



Lew Feldman, attorney for the developers, said RTA’s superior business proposal and an interest in introducing competition to the area were key components in making the final decision.

“TSI selected RTA because of the quality of their theaters and their superior proposal,” Feldman wrote in a letter to Wallace Theaters. “TSI also considered the long-term impacts of one operator controlling all cinema screens in the downtown area. The absence of competition over the past 20 years has not served this community well.”

The Redevelopment Agency meeting begins at 2:30 p.m. at council chambers, 1900 Lake Tahoe Blvd.

Also on the agenda:

– A status report on the demolition bid.

– Review the request by Ed McCarthy, owner of the Red Carpet Inn, to be included into the first phase of redevelopment. His motel is located next to the Phase 1 demolition line and is scheduled to be torn down in two years. He said the construction will severely hamper his business.

– A memorandum of understanding for the Triangle Project, located near the corner of Pioneer Trail and U.S. Highway 50. The memorandum calls for keeping the building which now houses Cutting Edge Sports, which was planned for demolition to make way for a new restaurant building.

– City Council meeting begins at 6 p.m.


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