Relocation payouts to be considered by city |

Relocation payouts to be considered by city

Michael Schneider

The city’s Redevelopment Agency, otherwise known as the South Lake Tahoe City Council, will consider Tuesday displacing 39 South Lake Tahoe residents.

The action would be the initial part of a plan to tear down three South Lake Tahoe motels – the Jack Pot Inn, the Serra Lodge and the Blue Lake Motel – to make way for more modern accommodations and increased parking.

The Jack Pot and Serra motels are near the intersection of U.S. Highway 50 and Pioneer Trail while the Blue Lake is a block from the highway on Ski Run Boulevard.

Between the three motels, 19 units are rented to families, roommates and individuals.

According to the California Relocation Assistance Program, the agency must provide assistance to those being displaced by the purchase and demolition of their residences.

The city will pay actual moving expenses to the relocated tenants, or give them a fixed moving allowance. A lump sum payment of up to $5,250 can also be made to relocated tenants.

Housing Coordinator Patrick Conway said, if the move proves to be more expensive for the displaced tenants, the agency will pay the rent increase for as many as 48 months.

Conway said moving expenses include payment of utility connection fees.

Owner-occupants may receive a housing replacement payment of up to $22,500.

The total cost to the agency for the proposed relocation is estimated by Von Klug and Associates, Inc., the city’s redevelopment consultants, at about $100,000.

In his report to the agency on this item, Bill Von Klug outlines three reasons why the South Shore’s economy has been in a downturn – the public’s perception that South Lake Tahoe is a low-quality, congested commercial strip, a lack of high-quality tourist facilities and increased competition from other vacation areas.

The destruction of the three motels, which Von Klug said block lake views and provide little scenic beauty along with similar motels, will retire old motel rooms so new rooms can be added to redevelopment areas without adding to the total amount of rooms available.

According to the report, the demolition of the motels and new construction will help rejuvenate South Lake Tahoe.

The April report on Nevada gaming wins showed South Shore gaming wins were down from last year while most other major gaming areas in the state posted gains over last April.

Who: South Lake Tahoe Redevelopment Agency

Where: City Council Chambers, 1900 Lake Tahoe Blvd.

When: Today, 4 p.m.

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