City Council News: Lot sells for $1.1M; Raises given; Connolly and Regan Beach updates

The City Council Tuesday formalized the offer on the SW corner lot on Ski Run Blvd and Highway 50. The lot, along with 12,000 square feet of commercial floor area (CFA), was sold for $1.1 million to Halferty Development Company.

The prime piece of South Lake Tahoe real estate was owned by the City's Redevelopment Agency, but when it was disbanded by the state the City had to buy it as the successor agency. They purchased it for $800,000 last year. Several buyers were interested according to City Manager Nancy Kerry which brought the bids up the what was accepted today by Council.

When the proceeds from the sale come into the City it will be up to the Council's discretion as to where the money will go. The $800,000 used to purchase the lot came from the City's reserve. The previous Council had voted to have the proceeds go to repay the reserves but that is up to the current Council.

There is a side agreement to the sale as well. A building permit must be issued on or before June 1, 2016 or the offer of floor units goes away. The City is in a unique position as they are involved in the planning process and able to negotiate in the design and development of the project.

The lot currently does not carry any Tourist Accommodation Units (TAU) or CFA so Halferty would either have to work with the City to get the coverage that is part of the sale, or purchase expensive units on the market.

What also comes with the lot are 88 deeded parking spots in the garage on Ski Run Blvd. They will be shared with the spaces owned by the Lake Tahoe Vacation Resort on the opposite corner of the intersection.

"This is a great opportunity to be involved," said Councilwoman JoAnn Connor about the sale and the impending planning process.

"I commend the Council on what will be a great public and private partnership," added new Councilwoman and Mayor Pro Tem Wendy David.

In other City Council Action:

The Council voted to give themselves a raise for the first time since 1998. Council members will now be paid $946 per month for a job that sometimes required 40 hours a week of participation in committees, meetings and other City work. This figure reflects a 3% raise per year since 1998.

Council can only vote on their own raises when a new Council is seated.

During the last election is was suggested during many open forums that perhaps people weren't running for office due to pay that was under $500 per month. A younger generation may now be encouraged to seek office.

"None of us ran for office to get fair pay, but it would be nice to get compensated somewhat fairly," said Councilman Tom Davis.

Also on the Council Agenda Tuesday was the approval of an agreement between the City and Design Workshop for the creation of a conceptual design for Regan Beach Park in the amount of $98,836.

City Manager Nancy Kerry also updated the Council and residents on the status of Connolly Beach. The issue of the City owned beach not being made accessible by the owners of the Beach Retreat and Lodge (the former Timber Cove Lodge) came forward at a Council meeting last year. Kerry said the survey was done to mark the high water mark and the 100 foot line. The lodge is also re-striping the 18 parking spots reserved for public use.