New South Lake Tahoe resort plans unveiled

SOUTH LAKE TAHOE, Calif. - In 2008 it was known as "The Hole" after financing dried up for a redevelopment project, bordered by Highway 50, Stateline Avenue, Friday Avenue and Cedar Avenue. A cement hole with rebar stayed until the project area could get under control of one owner through bankruptcy. In 2013, Owens Financial obtained a building permit to start spending $400 million to build over 27,000 square feet of commercial space along Highway 50. This was followed by the Zalanta Resort opening at Highway 50 and Friday Avenue in 2017. Also that year, the eight-acre "Chateau at the Village" was sold to Kawana Meadows Development Company, a Chinese-American investment group with a California base in Newark.

The CEO of South Tahoe Development, the corporation under Kawana Meadows and Tahoe Holdings, Will Oswald, made a presentation to the City Council on their planned project that will be built over the current retail buildings along Highway 50, and extend back to Cedar Avenue.

Oswald presented their ideas for the corner of Highway 50 and Stateline Avenue while requesting an allocation of 15,770 square feet of commercial floor space from the City. The Council approved giving the new development the floor space stating it was the type of project the pool of space was meant to be used for.

Their new project, now named The Resort at Tahoe, is planned like a village, much in the same fashion as the Heavenly Village across the street. Oswald said they want to create a walkable mixed-use space that will include the Village Walk with cafés, restaurants, bars and specialty shops, all done in a mountain theme. They plan to have an outdoor entertainment area, about 218 lodging units from 1-4 bedrooms, 135 hotel rooms and suites, and underground parking for 665 cars. Oswald said they may also add a bowling alley, creating an area where guests can check in and never have to drive after arriving by one of their shuttles.

The nightly rates will be high, following the example of the Zalanta next door, from $550 to $2,500.

When completed, it is estimated the project could bring in to the City, $14.4M annually in TOT and sales tax, $6,875,000 in gross property tax increases and $47M spent in local restaurants and shops.

Oswald said construction on the first 16 retail units could start as early as this summer. The whole project could take up to 3.5 years to complete.