FAQ
What is The Chateau at Heavenly Village?
Formerly known as Project 3, this is the next step in the City’s redevelopment efforts, which since 1991, have included Embassy Suites Hotel, Ski Run Marina, Tahoe Meadows Linear Park and the Heavenly Village.
The 11.53-acre site is located next to Harveys and across from Heavenly Village on the northwest corner of Highway 50 and Stateline Ave. and will include:
- two hotel-condominiums with 477 rooms
- 50,000-sq. ft. entertainment/meeting facility with an additional 21,000 square-foot pre-function area
- 57,000 sq. ft. of retail/restaurant space
- Village Green public park/plaza
- 717 space underground parking garage
- proposed pedestrian overpass across Highway 50, just steps from the Heavenly gondola
How can I receive sales information for the hotel-condominium suites?
S&P Destination Properties manages the sales and marketing of the hotel-condominium suites. Contact our sales office, at (866) 422-0919 or info@chateauheavenlyvillage.com
Who owns and operates The Chateau at Heavenly Village?
The Chateau at Heavenly Village is a planning partnership between the City of South Lake Tahoe/ South Tahoe Redevelopment Agency and Lake Tahoe Development Co, LLC.
The City of South Lake Tahoe/South Lake Tahoe Redevelopment Agency’s role is limited to assistance with acquiring certain parcels of land if the developer is unable to do so, with the developer advancing funds for all costs related to the acquisition. The Agency will reimburse the developer for certain costs related to the development of the Convention Center and the public improvements required for the project. The Agency’s financial assistance will come only from a portion of the new revenues to be generated by the project, and will only occur once the project is complete. The City will receive ownership of the multi-purpose meeting/convention facility.
Lake Tahoe Development Co, LLC is the developer and financing leader for The Chateau at Heavenly Village. It is responsible for all development and construction costs including the completion of the multi-purpose meeting/convention facility. S&P Destination Properties has been contracted to manage the sales and marketing of the hotel-condominium suites.
When will the project be completed?
Project A pre-construction began in May 2007 with anticipated project completion scheduled for Summer 2009.
How much does this project cost?
The Lake Tahoe Development Co, LLC is responsible for all development costs, as well as all operations and maintenance for the convention center. It is estimated that the project will cost $420 million.
How is The Chateau at Heavenly Village going to positively impact the local economy?
The Chateau at Heavenly Village fosters economic growth by:
- Creating “shoulder season” revenue through the entertainment/meeting activity
- Adding 500+ jobs
- Increasing Transit Occupancy Tax (TOT) revenue by an estimated $1.4 million
- Growing sales tax to the city by an estimated $275,000
- Generating net present value (NPV) of approximately $6.2 million for area school districts and government agencies
How will this project address South Lake Tahoe’s workforce housing needs?
The project will generate an estimated $800,000 a year to be used for affordable/workforce housing within the South Lake Tahoe city limits from a 20% of the Tax Increment (TI).
What is redevelopment?
Redevelopment is a process specifically authorized under California law to assist local governments in revitalizing their communities. It encourages new development, eliminates blight, creates jobs and generates tax revenues in declining urbanized areas by developing partnerships between local governments and private entities. More than 400 California cities and counties have adopted local redevelopment plans.
Why is redevelopment in South Lake Tahoe important?
It encourages this community to grow inward, not just outward. Urban decline drains the economy and tax base, strains the infrastructure and doesn’t afford citizens a growing economy. Redevelopment enhances and expands local business, renovates declining housing stock, removes blight and improves public infrastructure. Most importantly redevelopment incorporates environmental measures that will protect water quality at Lake Tahoe for future generations.
Are there any more redevelopment projects planned?
Please see Redevelopment Agency’s 5-year plan on its website http://www.cityofslt.us
Who oversees South Lake Tahoe’s redevelopment?
The South Tahoe Redevelopment Agency was formed in 1988. Its Board of Directors is comprised of the five City Council members. The Redevelopment Agency is responsible for the redevelopment, rehabilitation and revitalization of the Project Area (174 acres that run along Highway 50 from just west of Ski Run Blvd. to the California/Nevada border).
For more information, contact Eugene Palazzo, Director of Redevelopment and Housing with the City of South Lake Tahoe at (530) 542-6044 or epalazzo@cityofslt.us.
What can the South Tahoe Redevelopment Agency do?
Following are some of the unique responsibilities of the redevelopment agency:
- Receiving and spending tax increment revenue
- Helping improve public infrastructure and facilities
- Preparing sites for development
- Regulating land use
What is Tax Increment (TI)?
When a redevelopment plan is implemented, the improvements result in an increase in property values within the Project Area. However, individual property owners will not pay increased taxes unless there is a change in ownership, rehabilitation or new construction to their property. Increase in value due to change in ownership or new construction increases the tax revenues generated by the property. This increase in tax revenue is known as “tax increment”.
How does the Redevelopment Agency receive financing from Tax Increment (TI)?
Prior to beginning the redevelopment project, the county tax assessor assesses the value of all land and improvements within the Project Area and designates “base year” property tax value. After the redevelopment plan is adopted and construction has begun, the City, county, school districts and other taxing entities will continue to receive the same amount of revenues generated from the taxes paid on this original “base year”. Any revenue the redevelopment agency receives derives only from increases in the assessed value above the previously established “base year” value.
Who is the architect and interior designer?
MBA out of Reno is the architect and PD&A is the interior design firm handling the project.
If you are a vendor and would like to submit a bid please direct it to Josh Merkow, SMC Construction, jmerkow@smcconstructionco.com or fax to (530) 543-0621.