New agreement in the works for 56-acre South Lake Tahoe downtown project

SOUTH LAKE TAHOE, Calif. - The long-discussed 56-acre parcel in the middle of South Lake Tahoe is finally seeing movement again, and both the South Lake Tahoe City Council and El Dorado County Board of Supervisors (BOS) supporting further conversation. A formal agreement between the two is expected later in 2020 with another one-two years of public meetings, consultant review, and planning before plans are implemented. The California Tahoe Conservancy is funding the cost of the consultant, just as they did 30 years ago.

On Tuesday, the BOS and City Council both conceptually approved the start of the process of working on the area that currently houses the library, recreation center, ice arena, senior center, museum, Art League, Vector Control, maintenance yard and Campground by the Lake.

City Manager Frank Rush and County CEO Don Ashton have been meeting on the project that has taken many forms over the last 56 years. The county owns 41 acres and the city owns 15 acres but the land the library, museum, art building, senior center, and Vector Control rest is all owned by the County.

"We are on the verge of an important partnership with county," said SLT City Manager Frank Rush. "Both sides need to win, both sides need to feel good about this."

Portions of this 56-acre site were deeded to El Dorado County by D. L. Bliss in 1923 and by the Lake Valley Community Club in 1959. The City of South Lake Tahoe, through a cooperative lease agreement with El Dorado County, operates and manages the on-site facilities and uses for a public park, recreation, cultural, and visitor information purposes.

The El Dorado Beach Improvement Project and Lakeview Commons were the first phases for revitalizing and developing this civic and recreation area in the heart of South Lake Tahoe.

Rush said the project will be a "downtown concept" where concerts, gatherings, weddings, receptions, and other celebrations could possibly take place.

“A new positive identity for the City of South Lake Tahoe,” added Rush.

In 1964, before the city was incorporated, El Dorado County supervisors tried to figure out what to do with what was then a 415-space campground they owned. They debated its future, saying a campground shouldn't be in a city. Due to waste generated from the sites and laws requiring the transport of waste, a sewer system hookup was needed and the price tag was too high for the supervisors at the time, even though the campground generated enough income to cover the fees according to newspaper articles at the time.

The South Shore Chamber of Commerce at the time submitted a proposal for a $3.4M convention center. They asked supervisors to adopt a motel tax in South Lake Tahoe to cover the cost. Their plan included recreational facilities with pool and tennis courts and County offices for the sheriff and probation.

In 1966 the talk was continuing even with threats to turn it into a shopping center. There was also conversation about making it a day-use park. The County also had expressed interest in selling it to the City.

Since then the County and City have coexisted on the space.

The 56-acres will be recreationally-focused said Sue Novasel of the County BOS. She said it was nice to start the process began 30 years ago and work with the public, City and County on what the future holds for the space.

Rush said their main goal is that the City is in control of what happens with a new agreement that makes everything clear and simple. It would be clearly written so the potential for conflict is eliminated.

Under the proposed terms Rush presented, the City and County would enter into a new 50-year+ agreement that would provide the City with sole authority over the future development, operation, and maintenance of recreation and government facilities at the "56-Acres" (with the exception of the existing County library, which would remain County responsibility). As compensation for this agreement, the City would remit 50 percent of net campground profits (and any other outdoor recreation profits) to the County, and this annual amount is estimated at approximately $200,000 - $250,000 annually. As additional compensation, the City would construct a new Senior Center facility as part of the planned new Recreation / Swim Complex, and would then make an additional annual payment after debt associated with the new complex is fully retired (in 30 years).

South Lake Tahoe hotel and vacation home rentals are currently paying a "tourist occupancy tax" with two percent of it going to a new recreation center currently in the middle of the 56-acre project area. The City will have collected about $13M in the accumulated Measure P funds expected by time of construction. Rush said that even in bad years the collected tax would be $2M.

The map above is an idea of what the area could look like presented by Rush. A new police station and city hall could go where the current senior center is, with the senior center moving to the new recreation center, a new entry to the area on Tallac Avenue. He said the new center could be built along Lake Tahoe Boulevard, giving users a lake view and possibly added roof-top features for receptions and weddings. This is all just an idea though, and nothing has been officially planned.