First VHR in South Lake Tahoe denied a permit under new regulations

A home being built on Overlook Court near Heavenly Mountain Resort is the first one to be denied a Vacation Home Rental permit under the Planning Commission's interpretation of the new VHR guidelines created by the City of South Lake Tahoe.

During their monthly meeting at the airport on Thursday, the commission voted 2-2 to uphold the denial of the permit made by the zoning administrator, John Hitchcock. The fifth member of the commission, Shannon Eckmeyer, was not at the meeting due to another engagement.

The home in question, a newly constructed one at 3758 Overlook Court owned by three local residents, is currently in escrow. The issuance of the permit was part of the contingency of escrow. Escrow was set to close on the day the original permit was denied, so each day the escrow is extended it is costing the builders $400 per day with holding costs on their construction loan.

Tahoe Destination Vacation Rentals owner Kathy Jo Liebhardt says she followed the rules of the ordinance in applying for a VHR permit for the home's owners. The third party building inspector passed the home as it met all of the criteria in the ordinance including enough on site parking place. Liebhardt was surprised when the denial of the permit came through so immediately filed an appeal.

"We have requirements to follow as vacation rental companies to follow the rules and stay in compliance, or we loose our license to be in business," Liebhardt told South Tahoe Now. "All my requirements were met and passed to make this home as a vacation rental. I also was with the building inspector and VHR inspector, David Chapman, he did the final permit inspections for VHR. I also did the final of the building inspections to permit the VHR with him and this beautiful, million dollar home passed with no issues at all."

As per the regulations of the ordinance, on July 16 all home owners within 300 feet of the Overlook home were sent a notice that a new vacation rental permit was going to be issued. The VHR application hearing was set for August 2. On August 1, City of South Lake Tahoe Planning Manager and Zoning Administrator John Hitchcock received a letter from Jerry Goodman, a resident on Wildwood Avenue (outside of the 300 feet), requesting a hearing.

At the hearing, Hitchcock heard from Liebhardt, Goodman, and Noel Farmer, another Heavenly Valley Resort area resident. Liebhardt said in that hearing that she is a hands on property manager, doesn't rent to bachelor or bachelorette parties, wants the families to rent from her to have a great Tahoe experience while at the same time protecting her client's home.

Both Goodman and Farmer stated the neighborhood was already saturated with vacation rentals and that they foresaw a parking issue on Overlook should this home be permitted to operate as a vacation home. They both said that the character of the neighborhood would change.

"The Zoning Administrator considered the whole of the administrative record and public testimonies and concluded that the number of VHR permits located within 300 feet of the subject parcel and along Overlook Court would have a detrimental effect on the public health, safety and welfare of the residence within the neighborhood or injurious to the community within the vicinity" - John Hitchcock

According to South Lake Tahoe records, no house on Overlook has ever received a citation, nor has any home on nearby streets of Terrace or Lucinda.

During Thursday's appeal hearing, several people spoke both in support of the issuance of a permit, and against. At times, many comments were passionate and took the conversation away from the subject the commission was voting on.

Mark Salmon, the Realtor representing the sellers of the property, reminded the commission that what was before them was a hearing on the permit denial for the Overlook property, and not for overall ordinance which has been hashed out in numerous public meetings.

"People complaining were basing opinion on 'what if' as nothing has happened there yet, it is a new construction," Salmon told South Tahoe Now. This house is 3,000 square feet with off street parking for 6 cars. "Increased skier visits and a proposed lodge expansion at Heavenly will bring much more traffic into the area than will one vacation home."

The commissioners had two choices in their vote, to uphold Hitchcock's denial, or to overturn it.

They voted 2-2 to uphold because the character of the neighborhood would be affected as would public safety, both items many of the speakers backing Liebhardt said were ambiguous and not clearly defined.

"For the commission to bring up affordable housing in their discussion was off topic," said Salmon. "Very, very frustrating and not fair to people. Local residents will not buy this house, it is meant for vacation use."

Salmon said he is worried that the commission's decision will set a precedence for further building in South Lake Tahoe and show them that a permit is no longer a guarantee, something many of them depend on to sell homes.

Liebhardt has filed an appeal to the Planning Commission's decision, something both she and Salmon hope is addressed soon due to the pending escrow.