Events Center approved by Douglas County Commissioners

STATELINE, Nev. - In what has been a hotly debated topic for months between the five Douglas County Board of Commissioners and members of the public, the Tahoe South Events Center passed the final hurdle Thursday. In a 3-2 vote, the commissioners approved bond issuance, the final step in the approval process. The Tahoe Regional Planning Agency (TRPA) had previously unanimously approved it.

The planned 132,000 square-foot events center will be built on the parking lot of the recently sold MontBleu Resort Casino at the corner of US50 and Lake Parkway in Stateline. It will be used for concerts, conventions, seminars, and sporting events and could be an economic game-changer for an aging casino corridor. Local nonprofits are also expected to take advantage of the new space for fundraisers.

Prior to the meeting, the county clerk said she had received 467 letters in support of the project, 30 against, and 30 undecideds. Several citizens phoned during the meeting as well to voice their opinions including business owners and agency representatives both from the lake and valley sides of the county.

The project has been mentioned in several area plans: The South Shore Vision Plan of 2011, The 2013 TRPA South Shore Area Plan, the Douglas County Strategic Plan of 2015, and the Economic Vitality Plan of 2017.

Depending on COVID-19 related health and government safety protocols they expect to break ground by June 2020. This summer's work will likely entail more underground and utility work with completion anticipated in 2022.

The events center also checks off several boxes in the plans to eliminate economic blight, retain existing businesses while replanning and redesigning the area. With gaming revenue down in Stateline, a loss of 36 percent since 2018, visitors and locals have been looking for something new out of the area. The center's activities plan on capitalizing and growing a visitor base midweek and during the shoulder season, increase room revenue, non-gaming revenue and create new year-round jobs.

In the last 17 years, Stateline casinos have gone from an 11 percent gaming market share to just two percent and experienced a decline in room nights by 16 percent, and seen a decline of 54 percent in resort employees.

The county is behind the state's average sales tax growth.

What concerned many valley residents was the fact that funds from Redevelopment Area #2 (RDA2) would not be going to their needs, but would be staying at the lake. They will gain financially in the whole county should estimates of sales tax growth and collected property taxes come to fruition.

Douglas County has experienced a 35 percent decrease in property taxes levied on the casinos.

Tahoe Township (lake portion of the county) proponents cited the expected annual economic impact to Douglas County’s south shore of $40-$60 million, an estimated tax surplus of $1 million, 550 additional year-round employment opportunities for locals, as many as 800 construction jobs for two years, plus diversification to complement the destination’s shift from gaming to recreation and entertainment.

Commissioners Penzel, Rice and Walsh voted in favor; commissioners Engels and Nelson were opposed.

When discussing the economic impacts and recovery from COVID-19, commissioner Larry Walsh, vice-chairman, District 3 stated, “Approving the Event Center today starts that long journey. [It’s] a central link of our economic chain in Douglas County. We must do what we can to throw a lifeline to our community to signal that we will not retreat in the face of this crippling crisis. We must do what we can to restore our fragile economy piece by piece.”

Edgewood Tahoe is donating the land for the center which they say is valued at $10 million.

“We’re extremely grateful to the County Commissioners for their support and recognition of a project to help assure the long-term economic future of the south shore,” said Carol Chaplin, president, and chief executive officer of the Tahoe Douglas Visitors Authority. “It’s been a challenging multiple-year process and now we look to move forward with enthusiasm, imagination, confidence and hope to secure our future.”

Chaplin cited numerous supporters including Tahoe Regional Planning Agency, Douglas County partners, Lake Tahoe Visitors Authority, Tahoe and Carson Valley Chambers of Commerce, businesses, community, fraternal organizations, and individuals. More than 400 letters of support prior to the meeting flooded the Douglas County website, representing the overall community.

“Everyone has witnessed how the Heavenly Village redevelopment helped South Shore – and the 55 percent increase in property value within the California redevelopment district,” said Chaplin. “The Event Center also represents a game changer and major attraction."

Funding for the $80 million + project requires no tax increases for residents. Funding sources include $34 million or 19 percent via Douglas County Redevelopment Area #2, created in 2016 to strengthen the area’s economic base through focused attention and financial investment; a $5 per night lodging surcharge on each room at Tahoe Township properties (casinos/hotels, Lodge at Edgewood and vacation rentals) will account for 43 percent of debt service to repay the bonds; and current transient lodging license tax and transient occupancy tax for the remaining 38 percent.

Concern was expressed during the meeting that taxpayers would be paying for the project and left holding the debt should things not pan out. The Tahoe Douglas Visitors Authority will be the responsible group and not the county.

"This has been an issue since 1997," said Commissioner Barry Penzel, the board chair. "It offers a great deal of hope for the area.

Penzel also said he was sorry for all of the divisiveness the issue of the events center had brought to the county and the residents, something he said could have been avoided with facts.

Some of the missing facts included the fact that the center will be paid by tax money from RDA2, not from the valley or from the county coffers.

TRPA approval on March 25 was based on the promise the project will be a catalyst for a robust transit system as well as air, scenic and water quality improvements. Those details will be discussed further in an upcoming story, as well as the voters getting the RDA2 on the ballot this fall.