South Tahoe expected to spend $5 million on Park Ave. |

South Tahoe expected to spend $5 million on Park Ave.

Robert Stern

The South Tahoe Redevelopment Agency will spend $5 million in improvements in the 34-acre Park Avenue Redevelopment area. The projects, which will include water quality and streetscape improvements, will be financed by developers through a Mello-Roos tax.

A Mello-Roos tax is paid by members of a community facilities district, a designated area created to pay for public benefits such as drainage, parks and streetscape.

The community facilities district must approve the tax by a two-thirds vote. Because of the development agreement, the developers are legally obligated to vote for the tax, said Redevelopment Manager Jaye Von Klug.

The tax will be paid only by the developers in the special districts. Residents will not be taxed.

The district comprises Heavenly Ski Resort, Heavenly Resort Prop LLC., Marriott Ownership Inc., John Jovicich of Cecil’s Market, Trans-Sierra Investments Inc. and Tahoe Crescent Partners Limited.

Although the Redevelopment Agency has deals with the Park Avenue developers, not all of the developers have obtained ownership of the project property. The Marriott, Cecil’s Market and Tahoe Crescent Partners are trying to gain ownership through purchase negotiations or eminent domain. The property needs to be formally owned by the developers who signed the agreement before the July 3 vote.

The district is expected to be approved July 17.

The reason for the tax is to make up for the reduced revenues expected from the modified project. The Marriott time-share hotel will generate less tax revenue than a traditional hotel.

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