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Putting perspective on SLT’s proposed redevelopment area


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Dear City Council,

I am a 35 year resident with 16 years as a restaurant owner at the Y. I have also run several other Y area businesses. Sadly, I must say that the buildings in that area are predominantly the same ones that were already old when I moved here in 1974. The area is a strip development frozen in time and behind in competition with other tourism towns and under-equipped to compete even with RDA 1 in our own town.

While some might say too bad for those businesses because they bet on the wrong end of town. I disagree because RDA 1 was voted on by all our citizens and business owners so an unfair advantage was created through RDA 1. It wasn’t done on purpose. Most of us believed that the improvements would continue throughout our community. We wanted more than just a welcome mat into Nevada. But it was the logical place to start with large businesses willing to take the risk.

Duane Wallace

Duane Wallace

I clearly remember the very few jobs in place on those parcels at the state line prior to redevelopment. Now there is a clear advantage. The signage permitted is better at the state line, and the ability to walk from business to business that shoppers love is also in place. Redevelopment worked well on that side of the street. We have also learned lessons from the side of the street that didn’t work well. RDA is currently one for two. But had we not taken that risk, those paltry jobs that were there would have also seen a slow death. We are partially competitive now as a result of our bold risk. We need to take another.

While I do not believe government creates wealth but rather lives off it, there is an opportunity to rectify the tilted playing field the Y finds itself in. It is risky to do business in Tahoe. That is because there are more government agencies eating at the trough.

As a former elected official, I saw firsthand how each agency did not consider what other agencies were doing to projects by piling on to the point that projects either failed due to the delay in time to complete them or because the fees were endless as everyone took pieces of a pie that had not yet been baked. Or the agencies fought over which one had dominance over a project. It is a death by a thousand cuts.

Thousands of room nights, restaurant meals, bags of groceries and sales of all types have been lost each year as a result. Each of those losses meant more lost stable families for our schools. The reality was partially masked. For instance, as the actual number of rooms rented plummeted, prices rose for a while leaving revenues to local governments appearing stable.

Now a stark reality has been discovered because the economic downturn exposed the fact that business was already dying here. Raising prices to increase business has the opposite effect. Governments, including TRPA, now realize that they only survive if the businesses and projects they regulate survive. As local governments raised their prices for services their revenue dropped as projects stopped. At the macro level the federal and state governments are seeing it as well. Even those including the unions who often have animosity toward big businesses had their retirement funds invested in the stocks of those very same companies. The down turn in the economy exposed the failure of the process by exposing the actual relationship of government needing a thriving business community in order to survive themselves.

The project really is the fix. By allowing better square footage, adequate parking, a third story with appropriate setbacks and mixed use including housing, we can put more locals back to work. Not only through the construction work itself creating jobs but also through the subsequent jobs created by businesses that are able to make it by taking a shared risk in a public private partnership. This can all be done at the Y while still being environmentally responsible. In fact the poorly drained business that are replaced by better designed businesses will accomplish what staying frozen as a monument to the ’60s has never accomplished.

I do not want to be accused of ignoring the hole in the ground at the state line. It isn’t our best foot forward as a community. My answer is that real estate seeks its own level. At some point the cost of doing a project there will lower because of the drop in land values or because the reduced size of the project makes it more feasible. It will happen eventually.

I clearly remember how desperate the mostly motel owners at the state line were for a project as their only hope to end the slow death they were slipping toward. Without the financial ability to remodel on their own leaving a non competitive product in place they were more than willing to take a chance on redevelopment. Someday that land will produce jobs again. We, as a community, must insist on that.

And although Monday morning quarterbacking makes geniuses of us all, the truth is that what was there would not have survived. We had more of that type of room than tourists were willing to rent. With 6,000 motel rooms on the California side and the growth of timeshares and vacation rentals motels couldn’t fill up. Then as our main economic engine [gaming] sputtered due to not being able to make the changes they needed to compete and the advent of Indian gaming we became a Saturday only town. If it weren’t for our ski areas going through the expensive gauntlet of the master plan process for increased investment things would have been even worse. However, we must learn from our mistakes and make RDA 2 a better project. But, act we must.

I don’t know for certain how we will make it succeed, but I am certain how we will fail. That is if we do nothing. So let’s take a calculated educated risk on improving the opportunity for more jobs in our town. Let’s put our finger pointing aside and work together with each other to reinvigorate the lives of our families by giving them a place to earn a living. Both our chambers, our county, our city and all the agencies including the utilities need to cooperate to create the buildings that create the jobs that keep us all enjoying and protecting this beautiful place.

Respectfully,

Duane Wallace, South Lake Tahoe

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Comments

Comments (14)
  1. georgie best says - Posted: April 1, 2010

    So, whats your point? If it is that all entities need to get together and do a group hug? You might remember that you are one of the people responsible for the animosity in our town. You are one of the typical “old school” local politicians that we need to see get out of our town. You can’t even broker a deal between the two chambers that would result in one stronger chamber. Why the heck does a town like ours need two chambers and someone like you preaching to us what you can’t practice yourself? Wallace, there is no difference between you, Cole, Davis, Upton, Lovell, and the rest of the old schoolers who have destroyed our town through inept planning, self interests, and petty squabbling. Your record of not getting things done speaks for itself. Go back to the shadows. We need new people with new ideas and not someone with baggage like yours.

  2. John W. Runnels says - Posted: April 1, 2010

    Businesses and Residents

    Our community needs renewal and to re-invent itself in a new Green, eco-friendly, eco-tourism driven form. We need to break free of our dying dependence upon gaming driven tourism and market the tremendous value of our Alpine lake-mountain area.
    This economy offers those who survive and those who choose to invest their lives in our communities future an opportunity, to change, to re-design, and update what we offer to those we depend upon, our tourists.
    I know of no business who does not want to upgrade or rebuild their properties. Those who fought the City and agency requirements and costs to build are critical of the City and their policies. Given stagnant or declining property values, tax increment financing based upon an unrealistic 7% projected property revenue gains, and the track record of Redevelopment areas #1 / #3,

    Is Redevelopment the right plan at the right time?

    The City needs to take a step back, talk to residents, and re-evaluate their plans. Redevelopment is not the only solution to the problem of corridor renewal.

    * Put Redevelopment on hold temporarily or otherwise.

    * Finish the Tahoe Valley Community Plan and implement it.

    * Meet with corridor businesses and residents. One on one, at their place of business or home. City representatives should be familiar with all forms of assistance or funding for small business renewal and prepared to discuss with and help Locals apply. Local input has been selectively screened at six “community meetings” where the City has refused to discuss any method of community renewal except for Redevelopment and “tax increment financing”, and where residents participation is dependent upon their business hours and available childcare. For City representatives getting away from the sterile environment of the their offices, consultants, and tightly controlled public meetings can only increase their understanding of what residents and business owners are facing.

    * Target smaller areas. Encourage small groups of connected areas. Form B.I.D.S., no longer a bad word if used properly. Look at the success of Ski Run Blvd.

    * Restore acceptable water supplies and fire flow pressures to Lukins Brothers Water Company through the use of a Special or Community Service District, or T.A.R.P./ Stimulus funds, not by re-assessing STPUD ratepayers who have paid higher costs for decades for their water service

    * Let voters decide if Redevelopment which will increase costs for citizens of South Lake Tahoe and basin portions of El Dorado County, is what they want. Place Redevelopment on the upcoming ballot for the General Election in November 2010 or the off year Election in November 2011

    Please attend the City Council meeting April 6th, at the South Lake Tahoe Airport,
    or contact your City Council and make your views known.

    Thank you,

    John W. Runnels,

  3. LOCAL says - Posted: April 1, 2010

    Way to say it Georgie! We have retail/business for lease up and down the fifty corridor. Not the run down stuff Duane spoke of either. Now DW wants more? Tear down the old stuff and return it to its original state. Then we can fill up the nicer/newer buildings.

  4. sandy k says - Posted: April 1, 2010

    Go away Wallace. Like Georgie said and Local echoed…you are part of the problem.

  5. Steve says - Posted: April 1, 2010

    The chamber pushed every tax increase, the failed BID debacle, the ugly building murals, and presided over the decline in room nights and its own implosion. Now he wants to frame the hole in the ground as a smart move and encourage the same kind of “bold risk” mistake at the other end of town. Mind boggling.

  6. voicemail says - Posted: April 1, 2010

    Sounds like Wallace is running for office with his essay. God help us! Lest we forget what he did when he ran the Chamber. Steve, thanks for the reminder. I thought Wallace had crawled under some rock on the west slope. Why is he back? Oh, first school board and now….city council? Hope he does not live in the city limits. Once a politician, always a politician.

  7. Parker says - Posted: April 1, 2010

    You want to help business and encourage economic growth and revitalization all over town, including the Y? Cut sales taxes and business license fees, all things you Mr. Wallace worked to increase!! And that was when you were head of entity that was supposed to be pro-business, the Chamber! Thank goodness one of your tax increases, the B.I.D., got shot down!!

    And yeah George, what is his point? Duane what are you for?

  8. SLT Local says - Posted: April 1, 2010

    Mr. Runnels,

    They have not met with business owners in the past about the Proposed Project Area #2. Don’t expect them to do it now, have you noticed how their staff has decreased in the past year? That department is suppose to be in charge of Redevelopment, Housing, and Economic Development with 4 people?

    Their so-called effort will remain the same, and it will only get worse. They are already set in their ways from the opionions based on some City Staff, and the consultants they pay for from big cities who have no concept what so ever on a small mountain town like South Lake Tahoe.

    Project Area #1 may look nice, but it blocks our scenery of the mountains. How many businesses have closed down at Heavenly Village since it opened? I hate parking at the Parking Garage (which Redevelopment is in charge of), because their prices are outrageous! There are no shops, or restaurants that I really care to want to go to in there either!

    We need a meeting where City Staff will actually listen to us! We should not have to meet at the Airport either, we should meet somehwere else like one of our South Lake Tahoe Schools, or the College would be a great idea perfectly located in the center of town.

    I have lived in this town for over 20 years, and it angers me to see our town go downhill. We need a change!

  9. macoche says - Posted: April 1, 2010

    Redevelopment Sucks !

    It be OK if they had the money,finance, in place that worked but they don’t.

    This is the truth ,for the last 12 to 15 years all they put all their time ,our money, into was the Convention Center and That still Sucks.

    They let the roads crumple,infrastructure go to Hell.

    “That Shows Big time “.

  10. Louis says - Posted: April 2, 2010

    Duane, I won’t say I agree with you, nor would I say I disagree with you. But I will say seeing the comments they kinda echo perceptions I’ve seen here the last 20 years.

    Its not you. Its the perceptions. There is a huge disconnect of trust. Its time to start addressing those issues.

    As a former public servant you are in a unique position to give us a perspective. The public knows each branch of the government want a piece of us.

    How about you tell us what each branch’s goals are. Make it a Bi-weekly column, call the first one … obstructions to growth from the water and sewer perspective.

    For example, lets say a commercial property owner wants to tear down and rebuild just for argument’s sake. What hurdles does the owner have to go through? Its it just a simple application to STUPD or are the huge fees involved and why are they imposed?

    And don’t just stop with a STUPD perspective, do a little research with your contacts, tell us things that have happened from your experience. I personally have no idea why fees just for permission to hook up a new home to the water and sewer system (that are already there, existing and designed to carry that load) are so high. Or are they? How do fees compare to other areas?

    In short, don’t dictate to us, start by educating us!

  11. John Lee says - Posted: April 2, 2010

    Now is the RIGHT time for redevelopment, there is no better time that to start when we’re at the bottom to bring renewal and rebirth to the area. Runnels has zero cred when you look at how he’s wasted one of the most precious commercial spots in town , nearly purposely making it a dump. Other commercial property owners in the area want and need someone to step up to get people to spend their money here. I don’t want another BID , we couldn’t raise near enough money to do the kind of improvements we need. redevelopment can fix the big pieces so us property owners can spend our money on our businesses.

  12. Careaboutthecommunity says - Posted: April 2, 2010

    I don’t remember ever hearing about a city being so involved in the building private sector. I thought a private entity saw an opportunity, and moved on it.

    Why are things different in this town? Why is the private sector not taking up this challenge? Maybe I’m confused, but I don’t get why the city is involved in this.

  13. DAVID DEWITT says - Posted: April 2, 2010

    What Mr Runnels does with his property is no ones business but Mr Runnels.
    When i moved her 20 years ago Mr runnels was in business. Mr Runnels is still in business which is more than you can say about 50 percent of the businesses on highway 50. Lets worry about our town and knock off the attacks on legitimate businesses.

  14. Steven says - Posted: April 2, 2010

    To Careaboutthecommunity

    It has been going on forever. Many city council members, past and present are and have been involved in developement. Look at your council members professions-Contractor or investor!!! Davis was a big one, always spoke of taking care of the locals, eats at their restaurants and acts like your friend, and did nothing but stuff his own pockets. Where are our sidewalks? The current vacation rental fiasco is his doing, he owns vacation rentals and is a partner in the Tahoe Keys. The current vacation rental ordinance has destroyed every one of our neighborhoods. All you can hope is that Davis is surrounded by large, loud, obnoxious vacation rentals that totally destroy his quality of life, as the vacation rentals have destroyed ours!! There are many others including Upton and Cole and Birdwell. They are only on the council to further their own investments first and then maybe take care of the town-read locals and the town when it makes them look good! The so called “Good ole Boys” have run this town for decades and still do. That mentallity is still here, “my pocket first and then the locals (the town). And this is why the city is so involved in redevelopement, so public officials and their friends will benefit!!