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Validity of convention center permits being investigated


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By Kathryn Reed

Research is being done by the Tahoe Regional Planning Agency to figure out where the permits for the would-be convention center project stand.

When the project went into bankruptcy in October 2009 the permits were tolled by TRPA. This means the clock stopped ticking against the three-year validity of the permit while the project was in bankruptcy court.

How many new documents are needed for the convention center site is being worked out.

How many new documents are needed for the convention center site is being worked out.

The project came out of bankruptcy last month when creditors decided to foreclose on the project, rendering Lake Tahoe Development Company mute.

“If permits are held longer than three years, chances are likely conditions have changed so environmental analysis would be inaccurate,” Julie Regan, spokeswoman with TRPA, told Lake Tahoe News. This is one reason permits have an expiration date.

Last week South Lake Tahoe’s city manager met with TRPA’s executive director and chief legal counsel to discuss what changes are possible and what is valid. A decision is likely in the next couple weeks.

“If this project has to go back to square one, we are looking at a four or five year process with new environmental studies. That would be devastating,” City Manager Tony O’Rourke said.

Regan said TRPA wants to work with the city, but also wants to ensure all the legal aspects are covered.

“We don’t see a radical change in the footprint,” O’Rourke said. But he does foresee a more traditional hotel being built.

Most of the creditors have foreclosed on the 11-acre site near Stateline, though this week Owens Financial – the largest creditor – had still not filed the paperwork.

The foreclosure process essentially leaves the second and third tier creditors without anything, while the first tier are apt to recover some money, but not all that has been sunk into the hole.

For the entity that eventually takes over the project that originally called for a convention center, two hotels, retail and open space it means dealing with fewer people in a more simplified manner.

“Our biggest hurdle is nationally there is a lot of good product already built that you can get cheap,” O’Rourke said. “That is what we are competing with.”

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Comments (9)
  1. dogwoman says - Posted: January 14, 2011

    Looks like Randy Lane and the city council stuck it to the citizens of SLT even better than everyone suspected.
    We need to think long and hard before allowing ANYONE who was involved in this debacle to profit off the town ever again.

  2. dryclean says - Posted: January 14, 2011

    Anything less than a convention center or a facility with 2,000 person plus meeting space is unacceptable. We need a location where meetings can be held and adjoining motels, hotels, restuarants and retail can gain new revenues. We need more people in town who have lots of money to spend.Not a couple of 100 at a hotel. We need a couple of 1,000 who will stay and play everywhere.

    A luxury hotel is needed but put it somewhere else. Besides,it will not suceed without a surrounding neighborhood that has the upscale offerings these affluent folks want. Its still ghetto all around the hole.

    Our new city manager needs to work harder and get the town what everyone thought they were getting. Sounds like his old buddies at Vail are selling him on the high-end hotel they want.

  3. tahoeadvocate says - Posted: January 14, 2011

    To dryclean:
    Your right about the area around the hole. The redevelopment has created blight where many locally owned businesses used to be. Let’s find a way to upgrade those properties since the location is outstanding. Help the people who have been hurt the most by the city’s fiasco. This area has everything the affluent folks you referred to want. It has an access controlled beach, a floating dock marina, an upscale beach restaraunt all within walking distance of the casinos and the Marriott corridor.

  4. Parker says - Posted: January 14, 2011

    Like I stated before, something will eventually get built there. But some real estate developer, (and remember Vail is more real estate developer than ski resort operator), is going to try to get out of the whole purpose of the project, the Convention Center!

    Our City Mgr., (who remember has past ties to Vail!), sure sounds like he’s trying to clear the way for a non-convention center project?!

    When something is built there, hope the Council members who rammed the project through won’t have the audacity to attend any grand opening. For it won’t be the project they sold us on!

  5. Parker says - Posted: January 14, 2011

    And gee, the TRPA had no problem rushing the permits for the Convention Center through in the first place! So if they “expire”, why would it then be a problem to rush new permits through? Perhaps having the permits expire will give Vail, (who, you know, has a track record of getting whatever they want through the TRPA!) the out they’re looking for to not build the Convention Center?!

  6. Tahoan25 says - Posted: January 14, 2011

    Finally! Seems like people are getting that the new entities in town are for their own profit and not the well-being of it’s citizens, the Tahoe based businesses or our regular “Joe” visitors. They have no problem with trying to make this area a playground for the rich and pushing the worker bees off the hill to live.

  7. HARDtoMAKEaLIVINGinTAHOE says - Posted: January 14, 2011

    Start at square “1”, maybe we can find someone who can clearly understand the undertaking.

    I always thought the convention center was 10 years too late and we don’t have a Modern airport, rail, bus system or big enough roads system to keep traffic flowing at reasonable rate in the entrances to the basin or after they get here, plus the unpredictable weather patterns that hamper travel period.
    I don’t know if anyone else noticed but our countries cash flow problems might have increased with the latest financial figures, but still be are slaves to OPEC, China (our money to people connection) ,and they are already starting to gouges us again.
    There’s a lot more to just calling up some guy or investors, that want what they want ,what they can get it for, what it going to cost to get this Dead Pig Project, to the slaughter house to produce economic profits.
    The whole project was a Big Fraud, paper Pyramid Scheme IN THE GOOD OLD DAYS BEFORE BANKS AND INSURANCE COMPANIES SCREWED US BOTH WAYS AND THE CONCILS OF PAST AND PRESENT KNOW IT!
    No one will forget their faces, their names, in this town that were involved in this Swindling time share, bend over brother free for all, to the ignorant Villages idiots.
    It’s all in the Luck Of the Draw ,when someone tells you they are going to build you a free city convention center, won’t cost the tax payers a dime, “Brother ,Daughters ,Honest God loving people, you’re waiting to be Robbed”.
    Another virtue is TO not Keep Electing the same old people to your political process, this is not Cuba, its South Lake Tahoe, Home of the $$$$$$$$$$$$$$ “TAHOE LIFE STYLE”.

  8. lou pierini says - Posted: January 19, 2011

    Past city councils have not had the knowledge or experience to make informed decisions on projects like this. The hole will not generate the tax revenue to pay for public or private debt needed to complete the project so we can blame those that are long gone. Any city council this town has elected, has not had the knowledge or experience to ride the tiger and not end up in it’s stomach. I hope that changes.

  9. lou pierini says - Posted: January 19, 2011

    Lets hope that the new gov. stays firm in his desire to end redeveloment agencies in the state and save millions of $. Just wish his desire started long ago.