Time shares back on council agenda | TahoeDailyTribune.com

Time shares back on council agenda

Michael Schneider

At Tuesday night’s meeting the City Council will consider a complicated series of recommendations which would approve the transfer of 188 time shares within the Park Avenue Project to the state line Embassy Suites Hotel.

The hotel’s builders believe the only way out of an overdue bank loan is to convert the rooms to time shares and use the sale proceeds to service the loan.

City officials are concerned that a failure for the Embassy Suites Hotel would have an impact on the city’s ability to sell future redevelopment bonds to fund the Park Avenue Project and other redevelopment projects.

Should the city approve the conversion, there still may be problems with the process.

The hotel developers, KOAR-Tahoe Partners, L.P., will appear in El Dorado Superior Court Friday to attempt to persuade Judge Patrick Riley to continue a temporary restraining order against Mitsui Trust & Banking Co., Ltd.

The order, issued by Judge Suzanne Kingsbury in December 1997, prohibits the bank from engaging in conduct detrimental to KOAR, including selling the loan to a third party.

Riley can either find for the bank and allow the sale of the loan, or continue the order as a preliminary injunction pending a civil trial.

Tahoe Daily Tribune E-mail: tribune@tahoe.com

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