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Teens busted in car-theft caper

South Shore visitors may have a new place to rest their heads.

The South Lake Tahoe Redevelopment Agency unanimously voted Tuesday to allow Marriott Vacation Club International construct a time-share hotel in the Park Avenue redevelopment project.

Marriott and the redevelopment agency have one week to work out a few details. Agency members agreed to give Marriott the go-ahead for the next step in the process, which is to amend the Development and Disposition Agreement . The DDA was orginally between the redevelopment agency and American Skiing Company Resort Properties.

If the DDA is amended, ASC can strike a deal with Marriott to develop a 247-room time-share luxury hotel. The weekly time-shares would sell for an average of $24,600 per unit and rented rooms would average $300 a day.

This decision by the redevelopment agency is a critical step in the Park Avenue Redevelopment Project. If all the details are finalized, it would mean that construction on the project could begin next spring, a year earlier than planned and simultaneously with the quarter-share Grand Summit Resort Hotel.

But even though the agency agreed to the next step, City Manager David Childs said questions still need to be answered concerning revenue for the redevelopment agency and guarantees if all three phases of the project are not completed.

“I personally am incredibly confident that we will build out this project,” said David Holten, vice president of development for Marriott.

The redevelopment agency wants Marriott to put up an additional $3 million guarantee to make up for a difference in projected revenues. The agency board said it expects a shortfall between the previously agreed upon quarter-share hotel project proposed by ASC and Marriott’s time-share hotel.

“The way the business deal is structured now, there will be no difference as long as we have debt,” said Redevelopment Manager Jaye Von Klug.

Another point that needs to be worked out concerns the $2 million letter of credit, which at this point Marriott is willing to guarantee after the completion of the first of three phases. The redevelopment agency is pushing for that letter of credit up front.

Marriott is an $8.7 billion company with 46 time-share projects internationally.

Marriott and the redevelopment agency will reconvene at a special meeting Oct. 10.

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