Marriott Proposes Time-share Hotel |

Marriott Proposes Time-share Hotel

In a wave of last minute adjustments to the Park Avenue Redevelopment Project, construction of a Marriott time-share hotel near Stateline could begin in May 2001.

Marriott Vacation Club International will be making a presentation to the South Tahoe Redevelopment Agency in a workshop at 2 p.m. today at City Council chambers, 1900 Lake Tahoe Blvd. The purpose of the workshop is to discuss a change in plans to the original Development and Disposition Agreement, approved Oct. 28, 1999, between American Skiing Company Resort Properties and the South Tahoe Redevelopment Agency.

The proposal is to find out if the redevelopment agency would turn the purchase agreement with the Lake Tahoe Inn, now held by ASC, over to Marriott – if ASC agrees to a deal with Marriott.

“We’re just exploring opportunities with the Marriott,” said Stan Hansen, senior vice president for ASC, which has two other interested developers. Hansen declined to mention who those developers are.

ASC has always planned on turning the Lake Tahoe Inn development rights over to a flagship hotel company, Hansen said. The reason for taking control of the property was to ensure that ASC could monitor who took control of the property, which is adjacent to the Heavenly Ski Resort gondola.

Marriott’s plan is to change the makeup of the project from a quarter-share hotel to a conventional time-share hotel, which means time-shares would be bought for one week instead of 13 weeks.

When the hotel project was originally approved in the development agreement, specific design requirements were established, but with the proposed change from a 325-unit quarter-share hotel to a 240-unit conventional time-share, there are certain architectural adjustments that inherently need to be made, said Lew Feldman, attorney for ASC and Marriott.

However, primary adjustments to the development agreement will affect the interior design of the proposed hotel while the outside appearance will go largely unchanged, he added.

City Manager David Childs said key issues to consider in Marriott’s proposal include whether the project would bring in an equal or greater amount of money to the redevelopment agency as stated in the original Park Avenue Agreement. Also, the plan needs to include financial guarantees, which would allow for the redevelopment agency to pay off the debt service incurred by bonds purchased to fund the Park Avenue Redevelopment Project.

The project, as proposed by Marriott, is to be built in multiple phases, but the redevelopment agency wants to have some guarantee that it will be able to pay off the bonds by the completion of the first phase, not the last, said Mayor Tom Davis.

Marriott ‘s plans are to come back to the redevelopment agency with a final plan Oct. 3 and to make necessary change to the redevelopment agreement Oct. 10, Feldman said.

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