Stateline redevelopment area remains intact after Douglas County Commissioners' decision

STATELINE, Nev. - Douglas County Redevelopment Area No. 2 (RDA2) at Stateline is moving forward despite a move to have it dissolved by Douglas County Commissioner Dave Nelson.

There was an overflow crowd at the commissioner's June 20 meeting at Lake Tahoe. Many of those who could not fit in the meeting room were accommodated with audio feed in the judges' chambers and the bottom floor of the parking garage.

A long line of residents from both the valley side and lake side of the county waited to voice their opinions on the redevelopment area that would bring an event center to the casino corridor. For 90 minutes they told the commissioners their thoughts on why $90M should and shouldn't be spent on the new center.

It is anticipated the Tahoe Douglas Visitor's Authority (TDVA) would request approximately $25 million from RDA2 toward the project. The rest of the funds would come from a $5 per night surcharge imposed on lodging in the Tahoe Township as a result of the recent passage of SB 461 by the Nevada Legislature. This will go to RDA2 and is estimated to generate 55 percent of needed funding. Two percent of the three percent existing Transient Lodging License Tax TDVA currently receives is estimated to generate 20 percent of needed funding.

Redevelopment could cost $1.6M a year for bond repayment but there are predictions redevelopment could bring in more than $100M during its lifetime.

The current RDA2 fund balance for capital projects is expected to $739,491 on July 1, 2019, and $1,743,993 on June 30, 2020.

Nelson said he thinks anticipated room revenues from the area are inflated three times and said the planned event center is "grossly overbuilt."

RDA2 was created in 2016 primarily to aid the county in achieving a desired strategic planning goal to “work with local partners and stakeholders to initiate the development of a year-round conference/entertainment venue at Lake Tahoe (within Douglas County)." At the time, county officials acknowledged the need to head in a different direction and redevelopment had many of those answers.

With gaming in the Stateline casino core on the decline due in part to the proliferation of tribal gaming in California, there has been a subsequent decline in employment, property tax and gaming revenues. All of those are expected to be reversed with a new attraction for visitors to enjoy in Stateline.

The center would be the eastern anchor of a Main Street plan that would go Park Avenue in South Lake Tahoe. After a planned loop road to move Highway 50 to the south, planners would like to narrow the road to two lanes in each direction and encourage walking and biking, outside activities and new experiences through the whole stretch. Redevelopment on the California side of the state line brought the Heavenly Village and Marriott's Timber Lodge and Grand Residence, all of which are generating more taxes than originally estimated.

Commissioner Nelson called the event center plan "controversial and foolhardy." He said property taxes generated in the area should not be used to fund the events center which is planned for the MontBleu parking lot.

Jerry Bindell, general manager of the Forest Suites at Heavenly, was one of the many who spoke to the commissioners. He said a year-round event center would help create year-round jobs on the south shore. "Maintain RDA2 for the benefit of all citizens and businesses," he said.

"People doubted Edgewood's new hotel and expansion," said President/CEO for Edgewood Companies John McLaughlin. "We proved them wrong. Keep the RDA intact and there will be immediate and real benefits to Douglas County."

RDA2 funds can be spent on business incubator seed funding, wayfinding, street and bicycle improvements, flood control projects, and community facilities projects such as Kahle Community Center improvement and the Event Center.

"We are one county, we are one community," said long-time Douglas County resident Bob Cook. "We must reinvent and reinvest for the future of our area and economy."

The speakers in favor of RDA2 outnumbered those against about 2 to 1.

“These are nothing more than rosy predictions, "said speaker Tom Starrett, calling the RDA2 a "free taxpayer slush fund." He said the speakers who were in favor of RDA2 were either employees of businesses at the lake or would benefit from an event center.

Some of those against wanted to take the issue to the voters. It is very rare things pass in Douglas County, something Nelson and those on his side might have been betting on and something Commissioner Wes Rice, who represents the lake, said he knew people would say.

Both the Carson Valley Chamber and Carson Valley Visitor's Authority voiced their support of RDA2 moving forward, citing a thriving Stateline area would help the rest of Douglas County to thrive.

"It is time for Douglas County to start thinking about the future," said Tahoe Chamber CEO Steve Teshara. "Let's be excited for the opportunity."

Voting along with Nelson to dissolve the RDA2 was John Engels. Commissioners Barry Penzel, Larry Walsh and Wes Rice voted against dissolving the area.

This meeting was the first Douglas County Commissioner meeting back at the lake since May 16 when Engles and Penzel were involved in an altercation.