South Lake Tahoe property sale paving way for new development project
SOUTH LAKE TAHOE — The City of South Lake Tahoe has approved a purchase and sale agreement with Pasadena, Calif.-based Halferty Development Company for a chunk of property located at the southwest corner of Ski Run Boulevard and Highway 50.
Halferty is now set to buy the approximately 1.5-acre parcel, which the city is selling to the company for $1.1 million along with 12,000 square feet of commercial floor area at no additional cost.
What exactly will be developed in that space is currently unknown, but City Manager Nancy Kerry said conversations with Halferty indicated a mixed-use, retail project was a definite possibility.
“This is just the first step in a long line of hopefully significant involvement by council with this particular property,” she said, addressing the city council at this week’s meeting.
The agreement, approved unanimously by council members, gives the city the opportunity to be involved in the design and development of the property and to implement reasonable requirements throughout the process.
Halferty, however, will have to meet several milestones before the purchase can be completed, including obtaining a building permit no later than June 1, 2016. If the building permit is not obtained, the city will not be required to fork over the commercial floor area.
Currently, the property doesn’t have any commercial floor area or tourist accommodation units — highly sought after commodities in a region with specific regulations — so the city is using them as a negotiation tool.
“Partnering with the developer and offering CFA if council has a hand in the design and the tenants and so on is a good way to use the commodities you have and strategize with the developer to incentivize the kind of development you’re interested in encouraging for the growth of the community,” Kerry said.
A commodity the parcel does have is parking. There are 88 parking spaces deeded to it. They are located across the street near Lake Tahoe Vacation Resort.
There have been many potential buyers interested in the South Lake Tahoe property on the southwest corner of Ski Run and Highway 50, but ultimately a decision was made to move Halferty to the top of the list.
City Attorney Tom Watson on Tuesday spoke of the property sale and the plan moving forward.
“It is unique in this community for the council to be this involved in a development,” he said, “but I think it’s an excellent sign of the public-private partnership and the economic development strategies that this council has undertaken, that we begin to initiate some of these on our, what I consider, a jewel piece of our community.”
The city anticipates the development will result in additional revenue for South Lake Tahoe in the form of property tax, and probably some sales tax, in the future.
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