Placer County backs away from hotel conflict with South Lake Tahoe

Placer County officials have backed away from a land-use battle with the city of South Lake Tahoe. But they're moving ahead with the larger effort aimed at allowing development of a hotel on the north side of the lake for the first time since 1959.

The county had planned to pay private owners about $3.7 million for two hotels in the city of South Lake Tahoe, which is in neighboring El Dorado County. It planned to demolish them, getting credits for doing so from the Tahoe Regional Planning Agency.

Those credits would help the county entice developers to create a larger project in the north shore's populated areas.

South Lake Tahoe objected, however, that one of the hotels -- the 59-room Howard Johnson Express Inn at 3489 Lake Tahoe Blvd. -- is still viable and contributing sales and room tax revenue to the city.

Placer County dropped its interest in the Howard Johnson when South Lake Tahoe took issue. But it's moving ahead with the other property, the 34-unit Lake Tahoe Inn at 3520 Lake Tahoe Blvd. The county is considering paying $1.4 million for the property and its 0.6 acre. Placer County supervisors will hear more information at the end of February.

The transaction is part of an effort by the county to give an economic boost to the north shore. Because of strict restrictions on development around Lake Tahoe, county officials can't simply approve a new hotel.

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