Plans moving forward for Chateau at the Village project in South Lake Tahoe

SOUTH LAKE TAHOE, Calif. - What was once a large hole in the ground at Stateline in South Lake Tahoe has been filling in with businesses from the Zalanta condos to restaurants and shops, and the owner of the property is now preparing to start the next phase.

In 2016, Owens Financial sold the eight-acre site at the corner of Lake Tahoe Blvd. (US50) and Stateline Avenue for $42.5M. The whole section of property is 11.5 acres, but Kawana Holdings, LLC., only bought eight acres as the sale did not include the existing retail buildings and Zalanta. Kawana purchased land and entitlements, including the large underground parking area and what is known as the "air space" above the current retail operations.

In 2018, South Tahoe Development Corp., the former project manager for the new owner, made a presentation to City Council about the project, which was going to be named The Resort at Tahoe. At the time they said it would be planned like a village, much in the same fashion as the Heavenly Village across the street. CEO William Oswald said they wanted to create a walkable mixed-use space that would include a 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 at the time they might 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.

It is uncertain if the current plans will resemble that 2018 presentation.

During recent meetings on the new event center across the border in Nevada, many public comments were centered around the "failed convention center" in South Lake Tahoe.

After getting the necessary Planning Commission approvals to build vertically on top of the two current commercial buildings, Kawana has been working on the design and permitting of the condos that will become a new second and third floor. The City of South Lake Tahoe Development Services Department approved the company's application for a building permit in 2019.

Henry Chen, COO of Propriis, the company now managing the construction of the new project for Kawana, said the COVID-19 situation has delayed their start. Due to the stay-at-home order in California, Chen said they had planned to already have construction started on Phase 1 of the 16 units being built, but plans have been put on the back burner temporarily. He said once orders are lifted and their permit is received, they want to start. Chen said they are planning on starting construction in the next one or two months.

In 2007 the City of South Lake Tahoe approved a convention center, hotel, retail, and enhanced pedestrian streetscape for the 11.5-acre parcel after a developer bought all of the existing buildings and tore them down as part of a redevelopment project. When those plans failed to get the necessary financing, Owens Financial stepped in, and after years of court filings, owned all parcels in the project area. The sale ended their ownership of the property. Bill Owens said their role now is managing all the retail at the Chateau and Zalanta, along with condo sales and development at Zalanta for the owners who live in New York.

Architects are working on the back half of the property along Cedar Avenue, according to Chen. It is unknown at this time what is planned for that area.