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Opinion: Redevelopment in S. Tahoe is dead


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To the community,

On March 11, my wife and I drove around the hole in the ground. I call it the crater, like in bombed out. Nearby properties, former motels, etc. are fenced off. The area is double ugly, like a hurricane smacked it. There’s no telling how much money it will take to clean it up, if and when, something happens to move it “forward” as a redevelopment project.

On redevelopment in SLT

The convention center project from Cedar Avenue. Photos/LTN

The convention center project from Cedar Avenue. Photos/LTN

At this time it is impossible for the city to sustain its subsidy of $4 million a year to the Redevelopment Agency’s debt and stay solvent. Why? Because the source of revenue for the subsidy is shrinking. Without the subsidy, the Redevelopment Agency cannot pay its debt service of $8 million a year. Without the city’s subsidy, redevelopment is bankrupt.

To salvage city services at a decent level, the city should stop propping up redevelopment with transient occupancy tax dollars. Redevelopment is a bust and city officials, elected and otherwise must stop devaluing themselves that redevelopment is a godsend.

The Redevelopment Agency is misdirected. Since 1995 the combined tax increment revenues [property taxes] and TOT dollars used for debt service is somewhere between $80 million and $100 million. And the city is left with an empty bag.

It is time to stop dreaming and cut the cord to a stillborn misconception that redevelopment has made this city a good place to live, to work and to visit.

Bill Crawford, South Lake Tahoe

Fenced in Cedar Lodge at Cedar and Friday avenues.

Fenced in Cedar Lodge at Cedar and Friday avenues.

Grafitti on the Blue Jay Lodge on Cedar Street.

Graffiti on the Blue Jay Lodge on Cedar Street.

Grafitti and boarded up windows at The Block.

Graffiti and boarded up windows at The Block.

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Comments

Comments (27)
  1. Jonathan Moore says - Posted: March 19, 2011

    Mr. Crawford, have you considered applying for a seat on the city’s new “Fiscal Sustainability Commission”? The wealth of “institutional knowledge” you have would be invaluable to this new commission. Knowing how to guide the city’s financial future would require understanding how we got to where we are in the first place. Time and time again you have exhibited your understanding of ‘how it all works’.

    Humbly, Jonathan Moore

  2. Steve Kubby says - Posted: March 19, 2011

    This community owes a debt of gratitude for the honesty and integrity of Bill Crawford. It takes guts to openly discuss the City Council’s shameful history of redevelopment failures. Despite this public policy disaster, it is still considered politically incorrect to criticize redevelopment. Worst of all, Bill’s letter just scratches the surface. For example under all that rotting concrete are 28 different land owners. Incredibly the property under the Crater was never consolidated. Despite the best of intentions, or at least mostly good intentions, the South Lake Tahoe City Council has bankrupted the public treasury and still hasn’t responded to the public flogging, by the El Dorado Grand Jury, for inept and possibly criminal business practices. At this point the City Council stands discredited and unworthy of the public trust.

  3. Dogwoman says - Posted: March 19, 2011

    I always felt better when Mr. Crawford was on the city council. Maybe he is a little eccentric, but he never behaved like a politician as most of the council does. I always felt like he was the one who was truly looking out for the citizens’ best interests and was also the only one with a solid grasp on fiscal responsibility. I miss you, Mr. Crawford!

  4. X LOCAL says - Posted: March 19, 2011

    Thank You Bill Crawford for your years on the council, it’s just too bad that there were not 4 more just like you, if there were the City would not be in the shape it is in today, lay offs, furloughs and the worst moral that the City has ever seen. It runs wild in every dept from Police and Fire to Streets and administration and Parks and Rec. It is very sad to see this happening to a City that was once like a well oiled machine that was run well but that all went away with the hiring of Kerry Miller and continues to go down hill. Now you have a City Mgr. who has no reguard for the employees and word has it that his own family does not like Tahoe and wants to go back to Colorado!!
    Sad isn’t it.

  5. Julie Threewit says - Posted: March 19, 2011

    You know what’s sad? To read critical, finger-pointing anonymous letters from folks who have plenty of time to complain and no time to help with solutions.

    Also, XLocal, how unfair of you to begrudge the new city managers family for not being happy in Tahoe. They had deep roots in their CO community and it’s perfectly understandable that they’d go through a period of adjustment. If you are truly an “XLocal” I can only presume you missed Tahoe after you left yet you won’t give them the same consideration? Sad, isn’t it?

  6. Steve says - Posted: March 19, 2011

    Let’s hope California’s state legislators do away with these costly boondoggle redevelopment agencies altogether along with their irresponsible powers of eminent domain, special favors for their wealthy developer friends, and flimsy, inaccurate definitions of “blight”. Redevelopment is clearly an example of what happens when government runs amok.

  7. tahoeadvocate says - Posted: March 19, 2011

    The question that wasn’t addressed head on is how to we recover this area from the debacle casued by the city and the council. The 28 properties in the HOLE created through eminint domain are only 1 issue. The Cedar Lodge and the Block Hotels were closed by the city due to non payment of the TOT by the owners. What is the city doing to try to bring back the health of this area after they forced hotels out of business?

  8. Skibum says - Posted: March 19, 2011

    The city manager has two grown kids that went back to Co for college. He is not leaving the area.

  9. Skibum says - Posted: March 19, 2011

    Julie, I wholly agree with you on the subject of anonymous bitching postings without any solutions or even an offer of an alternitive. If just half these posters would go to a council meeting and talk things would happen. Moot point on the televising of the public comment section of the council meetings as they would have to state their name and be seen. People are afraid of what others will think for spouting publicly what they spout anonymously. These forums do serve a purpose and are entertaining to say the least. Some are very knowledgable and seem to have a grasp on our current situation but have no credibility with the powers to be. Ken Curtzwiler

  10. X LOCAL says - Posted: March 19, 2011

    Julie Threewit, I spent more years in Tahoe than you have been alive, I once loved Tahoe and thought that I would never leave but would not live there anymore on a bet. The once great area is now a place that most of the people that made it that way have left because of all you flatlanders that come to Tahoe and tried to turn it into a place like where you came from and have ruined.
    Tahoe used to be a place were you could go down to the lake and go to the beach anywhere and now it;s hard to even get to a beach without paying. You never had to lock everything up and hope that something was left when you returned.Tahoe used to be a place were you new everyone and everyone said hello and were friendly, That no longer is there.
    When Tahoe incorporated it was for the good of the people and there was a City Mgr. named John Williams who was the best thing that ever happened to Tahoe.
    Tahoe is a vacation area, It wasn’t meant to be like the big Cities with street lights and sidewalks and home mail delivery, It was a place where FAMILIES came and spent the summer and skiers came and spent the winter.
    Now you have GANGS,and violence and can’t walk the streets at night for fear of being mugged.

  11. dryclean says - Posted: March 19, 2011

    Xlocal, BS. The town is perfectly safe. People have left because of the economy. There used to be over 10,000 casino jobs and now there are 3,500. Yes, the city leadedrs and regional leaders have done very little in anticipation of US-wide gaming. But, people have left beause of no work and now the area has less $$ because there are less people which means less retail, less kids in school which means again, less jobs.

  12. Kay Henderson says - Posted: March 19, 2011

    I would be interested in Mr. Crawford’s opinion as to what should be done with the property.

    I think it is in our interest to look at a wide variety of alternatives. In the Civic Center area of San Francisco, for example, there is a park on top of underground parking for their convention center. Something similar in SLT could be the site of various warm season activities and festivals. This might be a terrible idea, as a city owned facility would not generate property tax. However, we should look at all options.

  13. Steven says - Posted: March 19, 2011

    Kay, a park is a great idea. Tahoe is becoming nothing but asphalt and buildings. Another great park location would be the corner of hwy 50 and ski run, where the city wants something developed! Isn’t that monster hotel on the lake side enough!!

  14. lou pierini says - Posted: March 19, 2011

    Bill Crawford is my man. His vote, on the council, was the one that protected the people! He was the only one that was able to enable me to sleep an nite, knowing he was on the south lake tahoe city council. lou pierini

  15. KINKYLOVER says - Posted: March 19, 2011

    By emphasizing a culture of economic growth, innovation, and technology, the Environmental Solutions Agency can achieve the same goals – clean air, clean water, improved public health – for much less cost to taxpayers through regulatory reform and smarter regulatory approaches. It also will minimize frivolous litigation that, while cast in the guise of environmental protection, is actually used by the EPA and so-called environmentalists to stifle economic progress for all Americans.

    79% of Americans believe we can solve our environmental problems faster and cheaper with innovation and new technology instead of relying on more litigation, more regulation, and more government red tape. An overwhelming majority also believes entrepreneurs are more likely to solve energy and environmental problems than government bureaucrats, and nearly 70% believe we don’t need to impose costly taxes if we incentivize technology and innovation. All of these are completely inconsistent with the current EPA’s model for addressing the environment and public health, and no amount of simple reforms will change that.

    It’s time to get serious about permanently reducing the size of government, and it’s time to get serious about promoting a healthy economy along with a healthy environment. It’s time to replace the EPA, along with the T.R.P.A., SIERRA CLUB AND ALL THE OTHER WORMS THAT BLOCK this town from depending on only tourist,timeshare,corrupt two faced council members along with chamber morons,real-estate rip offs,Gouge me retailers.

    Reality is we need to get rid the T.R.P.A….
    I’ve often wanted to start a major beer company with Tahoe pure water, along with a bottle water company,to promote good paying jobs,steady money flow and the best damn beer the states has to offer.The red tape and all these over lapping agencies prevent so many jobs from being promoted here,it’s too costly to screw with these puppets on strings,so like others ,we have business in other areas that are easy to build,maintain,not have a colon picture taken every-time you bend over like here in South Shore.
    They don’t want any competition here,Vail screwing everyone you for 8 dollar an hour jobs,we need 15 to start and cost of living raises,insurance,good benefits work places,this not going to happen with what these UN-VISIONARIES have on the drawing tables.They buried this town with so much debt,bad contracts,The worst PR to residents and secure top name brands of business ,it’s plan b-tt ugly.
    They have no imagination of how run a successful enterprise including their own city budgets,quality young, well educated,dedicated employees.
    They crap where they sleep,bring it to work to rub off on customers fellow employees.(there’s way better philosophies of you don’t like it, go on down the street,move,attitudes.)
    The lack of the clubs being competitive with both entertainment,promotion,new remodeling attraction,greater marketing, lets the Indian casinos take their ten ,twenty bettors to closer,better venues out here.(they are too big,proud, to take your 20 dollar bills now day here)Their VIP lounges food sucks in this town,tacos,meat balls,pasta,”Get Real,lobster,steak on a stick,best wines,bubbly, ARE WHAT THE INDIAN SAVAGES ARE SERVING”.
    The lack of cooperation among the puppet string pullers keeps this city poor,confused,helpless to opportunities.
    It’s a town of no doers,big planners,lots smoke but no fire ,grant brokers,charity dinners ,RERUNS.

  16. irony says - Posted: March 19, 2011

    If the city or RDA stops paying on the bonds it will never be able to sell bonds again or at least a very long time. It has no legal obligation though to pay on the bonds except what is pledge on the indenture. Of course that means default according to Bill.
    I don’t know if the question of what our town would look like without the previous redevelopment has been considered.
    When you consider that casino employment is down by two-thirds, from over ten thousand to thirty five hundred in twenty years, is it no wonder our local economy is suffering. Add to that the devaluation of redevelopment property and you have a lousy economic scenario.

  17. lou pierini says - Posted: March 19, 2011

    Make your comments short then they will considered.

  18. lou pierini says - Posted: March 19, 2011

    Redevelopment after 23 years

    Redevelpment does not work, we have 23 years to prove it and 30 years of debt to live up to.

    d

  19. lou pierini says - Posted: March 19, 2011

    It was never 10,000 check your facts.

  20. Frankly says - Posted: March 20, 2011

    Crawford was on the council to approve Lane’s project to now say it wasn’t a good idea is more than just disingenuous. There’s no way to know what part the economy played on the collapse of the project let alone the whole town, but to say it had no part in it is simply ignorant. These problems aren’t unique to Tahoe every town is suffering buried under stalled projects, business closings and layoffs. People who don’t like improving the town can use the situation to clamor their opinion is the right one just as people do for everything when they want to make their opinion be right, they only use the facts that support it. There are no facts here that make any one opinion right except that we better all stop blaming and pointing fingers to prop and stop the who’s right who’s wrong dialogue and start working together, demanding help from TRPA to make the regulations easier to improve the area, use redevelopment money, developer’s money or any other money to improve our town and start showing the world its a great place to come , play and spend their vacation or we might as well pick up our stones and go back to our little cabins and throw them from there because there’ll be nothing left to do in fairly short order.

  21. admin says - Posted: March 20, 2011

    The City Council is summer 2006 signed the LTDC deal. Bill Crawford was elected in November 2006.

    Kathryn Reed, LTN publisher

  22. lou pierini says - Posted: March 20, 2011

    What people call improving are usually people who have a vested interest in “improvment”. This improvement will break the city. I hope its not too late too stop it.

  23. tahogal says - Posted: March 26, 2011

    Bill Crawford was the lone voice in warning about the situation that created the big hole, the City owning the parking garage,etc. If they had listened to Uncle Bill, we wouldn’t have this situation. How many more years will weather deteriorate the rebar and concrete in that “hole”, so that all of it has to be done over from scratch? We miss you Bill, but from the sidelines you can still make your point. And we look forward to that.

  24. dryclean says - Posted: March 26, 2011

    Yes, we need Bill on the sidelines offering his candid opinions but please do not run for council again.
    Unfortunately, it appears Greggo plans to run again. Can someone please talk him out of it.

  25. bob rockwell says - Posted: March 26, 2011

    In the 1970’s timeshares were all the rage along with something some real estate agents called “Creative Financing”
    I remember one agent boasting how he got a dishwasher from Barney’s Casino into a home. When I asked how is this kid going to afford the house payment he just laughed and said “Not my problem”.
    In a sense we’ve got a similar problem with redevelopment. With the questionable legality of using eminent domain the city takes over many properties and sells them to the developers. The developers quickly run out of money and walk away. The city council throw up their hands and say there’s nothing they can do.
    So all those bussines owners lost there property and income and we’re left with a big hole in the ground and a bunch of boarded up old motels and a mountain of debt.Bad idea from the very start.
    Thanks Mr. Crawford For all your years of teaching and staying active in the community.

  26. Parker says - Posted: March 26, 2011

    Biggest problem with redevelopment is that it’s a crutch the City has leaned on! As our private sector economy has struggled, even in the good National Economic times, the City Council, included Mr. Crawford, never put forth a plan to get the economy in gear!

    The Council, with the exception of Mr. Crawford, would just proclaim, “Oh we’re doing redevelopment!” Wasn’t the last Council’s plan to just basically make the whole town a redevelopment zone? Wow, that was brilliant!

    Even the redevelopment projects that were completed were just a zero sum game for the town-shifting business from one part of town to another. The community & City govt. need to find ways to ease the burden, financial and otherwise of doing business in SLT!! And FYI, the TRPA is not the entire reason there’s a difficult business environment in our community!

  27. lou pierini says - Posted: March 26, 2011

    Lets go back to Mr. J. Moore. Whats your plan other than to eat humble pie with the go alongs.