SOUTH LAKE TAHOE, Calif. – Tuesday’s city council meeting addressed the Chateau site, also called the “hole in the ground” after consultants returned with findings, whether electric scooters like those provided by Lime and Bird would be slashed, the budget for Ski Run Business Improvement District, and updates from the city’s general plan.

Hole in the ground

After the consulting group RSG was tasked to evaluate further economic development of the Chateau in late August last year, they returned to city council with their findings. Councilmember Keith Roberts recused himself from the item. RSG presented that they’d found from stakeholders that the Chateau site needed plan revision, especially as its conditions of approval were 20 years old.

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The construction of the Tahoe Blue Events Center lessened demand for events space, which was originally part of the Chateau plan, along with an arts and performing center. Plan revisions from stakeholder feedback included eliminating the large convention center, but keeping some meeting space, allowing for larger units, more commercial floor area for restaurants and retail, and publicly accessible indoor and outdoor community space. Though workforce housing was considered, RSG reported that it would be infeasible without an external source of subsidy.

Overall, the plan revision may still have a below-market value, even with the reduction of tourist accommodation units and meeting space. However, RSG stated that the success of the project could yield over $6 million annually by Year 10, especially if the county were to cooperate with the project. They also recommended that the city could facilitate development by providing assistance to owners and buyers, as well as creating incentives for development.

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Though there was some uncertainty among the council, especially regarding the potential demand for more conference/meeting spaces and the risk utilizing taxpayer dollars, Henry Chen, COO of Propriis that owns the Chateau property, spoke to council and assuaged some of their worries. “Things are more viable now,” said Chen.

Questions of eminent domain also arose, along with the possibility for the Washoe tribe having a say on the property use. “Returning this land to them could be very meaningful,” said Mayor Pro Tem Cody Bass.

A motion directing RSG to determine answers to the questions council had, determining district boundaries, initiating discussions with the Washoe tribe, and working with the owners carried unanimously.

Electric scooters

The city adopted an ordinance in February 2020 for shared mobility devices, primarily referring to electric scooters provided by Lime and Bird in contract with the city. Dan Bardzell, assistant city attorney, brought forth an ordinance amendment that would halve the number of scooters and permits in the city and require insurance for related incidents.

According to Bardzell, the city has previously been sued for an injury case with the scooters, has received two claims, and is currently dealing with a lawsuit regarding a private scooter incident.

Councilmember Scott Robbins asked whether the issues with the scooters would really be reduced by reducing the number of scooters. Mayor Tamara Wallace said she was the one who requested that an amendment to the ordinance be made. “In a perfect world, we would get rid of [the scooters] completely,” said Wallace.

Public comment revealed both dissent and support for the scooters, with some saying that it helps with environmentally friendly transit, while others said they disliked the disruptions and accidents they caused. A Lime representative stated that Lime has brought in roughly $300,000 since partnering with the city in 2017, while a Bird representative said that about 30% of users are locals.

Council unanimously passed a motion that directed staff to reach out to vendors and return to city council with options for safety improvements and assess liability shielding for the city by April 22.

Budgets and updates

Ski Run Business Improvement District requested a subsidy of $13,500 from the general fund subsidy, which passed unanimously, although Scott Robbins recused himself for having property interest in the neighborhood.

The city’s departments also brought the general plan annual progress report, housing element implementation update, and surplus land inventory for 2024.

In 2024, development services amended the Tourist Core Area Plan and Tahoe Valley Area Plan, initiated planning for the Midtown Area Plan, contracted with a consultant to develop preapproved accessory dwelling unit (ADU) plans, implemented the rental assistance program, and continued successful implementation of the housing inspection program. The city provided six ADUs and three multifamily rental units.

For the fire department, the city authorized professional services for fuel reduction and planning fuel reduction projects, along with a citywide ordinance for defensible space requirements.

Public works developed the Vision Zero action plan, the Stateline Avenue Complete Streets Project, and procured an engineer design contract service for six EV charging stations for the city fleet.

The recreation department approved the renovation of the skate park at Bijou Community Park and installation of mobi-mats at Connelly Beach to create ADA beach access. The police department completed the citywide radio system upgrade. Lastly, the council selected a recommended alternative for the Airport Master Plan for environmental review.

Jessica Wackenhut Lomeli, city housing manager, presented on the housing element implementation, which is continuing in a positive direction given the development of Sugar Pine Village and ADU guides. She also addressed the surplus land at 3900 and 3980 Lake Tahoe Boulevard, where they are putting 75 affordable rentals.

City council unanimously approved the report updates.

During public comment at the top of the meeting, cannabis business owners and consultants requested a lowering for the city cannabis tax from 6% to 1%.

The Arts and Culture commission updated city council that they would have their mini-grants available soon and were contacting the Washoe tribe to create art for the new recreation center.

Lastly, the Tahoe Coalition for the Homeless pay for success contract item was pushed to a future council meeting.

Next Tuesday, the strategic planning retreat will take place at 9 a.m. after a closed session.

Eli Ramos is a reporter for Tahoe Daily Tribune. They are part of the 2024–26 cohort of California Local News Fellows through UC Berkeley.