Approval of VHR permit in South Lake Tahoe: Hours of debate, thousands of dollars

Roman Kreminski lives in South Lake Tahoe and, like many others, makes his living in building "Spec Homes," the process of building and selling homes for sale without any particular buyer in mind. It used to be a good business for Kreminski based on speculation of a strong real estate market and buyers waiting to invest in paradise.

He kept about five local families working full time to build the homes.

After Thursday's South Lake Tahoe Planning Commission meeting Kreminski said, "I'm done."

In a fight to have a home he and his partners built on Overlook Court in the Heavenly Valley neighborhood be permitted for as a vacation home, Kreminski said it cost him about $10,000 and months in time due to appeals, hearings and going through the process of finding buyers, only to have one escrow fall through due to the VHR process.

A new VHR ordinance was approved by the SLT City Council went into effect October 1, 2015. Since many home buyers in the city are looking to both be able to enjoy their home and rent it to vacationers at times so they can get help with costs, many escrows have a contingency that the home will receive a VHR permit prior to closing.

On July 16 all home owners within 300 feet of the Overlook home were sent a notice that a new vacation rental permit was going to be issued. The VHR application hearing was set for August 2. On August 1, City of South Lake Tahoe Planning Manager and Zoning Administrator (at the time) John Hitchcock received a letter from Jerry Goodman, a resident on Wildwood Avenue (outside of the 300 feet), requesting a hearing.

On August 11, the hearing was held, one full of passionate appeals from several people, both in support of the issuance of a permit, and against. The Planning Commission wouldn't approve the permit and the applicants then had to file an appeal with the City Council which they lost. The home fell out of escrow, costing Kreminski and his partners about $400 a day because of the interest on the building loan they had that couldn't be paid off with the sale of the home.

A new buyer, Ed Meyer, entered the picture and the sellers started the process over again. Meyer owns another home in South Lake Tahoe but needed to find a larger one to fit his growing family, and a home he and his wife home to live in full time after retirement. The permit was approved this time by Kevin Fabino, the City's Director of Development Services Department and Zoning Administrator. Fabino and the Meyers came up with a set of rules surrounding the house, including security cameras on the perimeter of the home, private security and a next door neighbor acting almost as an on-site manager.

The decision was appealed by Goodman again, something he said on Thursday that he hates doing but it is his attempt to protect the quality of life in his neighborhood, one he said has changed because of the increase of vacation homes near the ski resort.

Kreminski and the Meyers had success on Thursday evening during a four-hour long Planning Commission meeting. There were once again passionate appeals on both sides. At times the arguments steered away from the reason for the hearing, which was centered only the approval of the VHR permit at 3758 Overlook, not about VHRs in general, character of neighborhoods and what exactly is "too many" vacation homes in any one area.

The commissioners, in a 3-1 vote, upheld Fabino's approval and the permit was issued.

Even with the approval, Kreminski said he couldn't continue if it would mean four months of hearings per home at a cost he could no longer absorb.