Agreement for 56-acre-project in South Lake Tahoe involves land swap, new design

SOUTH LAKE TAHOE, Calif. - A new 50-year agreement between the City of South Lake Tahoe and El Dorado County has been approved for what is known as the 56-acre parcel.

The City and County entered into its first agreement on the parcel in 1968 with updates starting in 1972 when the current 50-year agreement was signed. Due to its upcoming expiration in 2023, there have been discussions for the last few years, new plans completed, several public meetings, and meetings with partners. During its meeting on January 18, the City Council approved the new agreement, followed by the County Board of Supervisors' approval on January 25.

This new agreement and 56-acre master plan have been decades in the making, and as El Dorado County Supervisor said, it's a huge turning point for the community.

The new agreement and ground leases are for 50-years and can be extended by both parties to a total of 99-years. The City will develop, operate, and maintain the owned and leased property on the 56 Acres for recreation and government facilities.

The City will pay the County $200,000 per year for use of their property starting in the 30th year of the agreement, and 50 percent of net operating revenues from the area except for those from the ice arena. Per the agreement, the County will reinvest all money they receive into infrastructure and services in the Lake Tahoe Basin.

There will be a land swamp involved in the project area. The County owns 41 acres of the 56-acres, the City the remaining land. The County will transfer about 10 acres to the City for the building of the new multi-generational recreation center which will be built along Lake Tahoe Boulevard. The City will demolish the old recreation center within 15 years. The county-owned vector control building will stay in County ownership until it too is demolished within 15 years. At that time the County will give that parcel to the City and the City will identify a new location for vector control and give that property to the County. The City will transfer the 10 acres at the current recreation center site to the County for use as a possible City-County government center (something that would be agreed upon by the two entities).

The County retains ownership of the library and old jail/visitor center building which is being turned into the new JPA ambulance base.

One provision in the agreement states County residents residing outside City limits may use the existing and new recreational facilities under the same policies and fee schedule as City residents.

The City and County worked collaboratively on the new master plan and will continue to do so on future public improvements. South Lake Tahoe City Manager Joe Irvin thanked his predecessor Frank Rush for starting the collaboration and planning, along with former city councilmembers Brooke Laine and Jason Collin, City Attorney Heather Stroud, County CAO Don Ashton, County Counsel, the Board of Supervisors, and all stakeholders including the senior citizen's group and Commission on Aging.

The Board of Supervisors echoed appreciation of the collaboration between all stakeholders and staff.

They will continue to meet annually to discuss the agreement and plans.

During the City Council meeting, there was a concern voiced by the public that the highway was the historic Lincoln Highway and Pony Express route, and that the highway's scenic highway designation was a concern for a new project. The City said there is no physical evidence that those sites are in the project area. Another public comment wanted to make sure the master plan of the area remove the labeled access route to the beach between Sierra Shores and the Tahoe Beach Retreat as there is no current path.

Before there was a City of South Lake Tahoe there was a lot of controversy over this parcel. It was the largest campground in the area on this space (1/2 of all South Shore campsites in 1964), and it needed to have sewer hookups as their process of 12,000 daily gallons of sewage dumping into septic tanks would no longer be accepted by the utility district. Supervisor Chair Jack Caswell said in a 1964 story that the campground had "outlived its usefulness." The County at the time proposed a convention center in the spot as well as a shopping center so they wouldn't have to pay for the costs associated with sewer hookups and sewage export. They also investigated a day-use park instead of camping at the time. When the City and County formed that first agreement in 1968 that the City would manage the property for the County, those older ideas were abandoned.