South Lake Tahoe City Council: $23 minimum wage, rezoning parcels, Chateau and motels

SOUTH LAKE TAHOE, Calif. - The next meeting of the South Lake Tahoe City Council will be on Tuesday, April 23 at 5:30 p.m. in their chambers at the Lake Tahoe Airport.

It will be a full agenda, starting with a closed session at 4 p.m.

The hot topic of the event will most likely be a discussion of raising the minimum wage in South Lake Tahoe to $23. The matter was put on the agenda at the direction of councilmembers Scott Robbins and John Friedrich.

The minimum wage in California, effective January 1, 2024, is $16/hour for all employers. California-based fast-food workers for chains with 60 or
more locations around the nation earn at least $20 an hour beginning April 1, 2024. In June 2024, healthcare workers in California will earn a minimum of $18, $21 or $23 an hour, depending on what type of facility employs them and where they work.

Should South Lake Tahoe council members give direction for the city staff to move to the higher minimum wage, South Lake Tahoe would have the highest minimum wage in the state. Direction to initiate a public process to explore a potential minimum wage increase will incur undetermined staff time and consultant costs. A request for proposals to solicit outside expertise to conduct a Citywide economic analysis would be issued and a recommendation for award of a contract and allocation of funding would be presented to the City Council at a later date.

A public hearing is part of that agenda when the Council reviews an application from HVR Acquisitions LLC (HVR) to rezone a parcel for their luxury condominium project behind the old Raley's at Stateline. One of the parcels the developer owns is zoned recreational, and to accomplish their goals they want to have it rezoned Tourist Center Mixed-Use.

HVR submitted a development application in 2019 to the City of South Lake Tahoe, proposing an amendment to the Tourist Core Plan. They had asked for the rezoning of two parcels at that time. HVR intends to develop a multi-family project on the rezoned property if the amendment is successful.

The Council can adopt the plan changes, or deny them.

Completion of the Chateau at the Village project at Stateline has stalled, and the Council will consider the appropriation of up to $100,000 from available reserves to fund economic development and real estate consulting services at the project. There have been continued efforts to implement the direction through City Code enforcement, discussions with the current property owner's representative, and research into additional strategies to address the property. Staff recommends engaging a financial and real estate
consultant to provide development and financing options to complete the project.

Construction of Phase 3, 16 hotel/condominium units above the existing retail spaces, continued through the Fall and beginning of Winter, however, progress is now at a standstill. Building B (east side) is under a city-issued Stop Work Notice, pending weatherproofing, with construction allowed to continue after the winter season. Vertical construction continued on Building A (west side) until the developer informed the City that after a CalOSHA inspection, they were notified that the scaffolding was required to be higher to protect workers. The property owner has indicated that all scaffolding was removed and construction halted until they identify a new scaffolding provider and weather conditions improve.

The Council will receive an update on the status of the Motel 6 and Sunray Motel properties.

The California Tahoe Conservancy purchased the Motel 6 and the old Carrows restaurant for over $15M and they intend to demolish them both and restore the property as part of the Upper Truckee River watershed.

In 2022, the Sunray Motel had seven inspections between April and September, resulting in a total of $25,032 in administrative fines issued to the property owner. On September 20, 2022, City staff determined that the property was vacant and boarded up to abate previously cited substandard housing conditions. Since then, the property has continued to be subject to the requirements of City Code Chapter 4.65 Nuisances Consisting of Abandoned or Substantially Damaged Dwelling Structures. The property remains non-compliant. The fifth compliance deadline of January 24, 2024, has passed, and the current administrative penalties are $46,032 and the sixth compliance deadline is April 24, 2024.

The Sunray Motel is reportedly in escrow, but the property is also subject to a lawsuit between the property owner and prospective buyer for a breach of contract. The council will get an update on the property.

For the complete agenda in English and Spanish, and instructions on how to participate and watch remotely, visit https://www.cityofslt.us/84/Watch-City-CouncilCommission-Meetings.