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Architectural view of the Chateau from ground level, skier at Heavenly Mountain Resort, casino entertainment.

Welcome to your local resource for construction schedules and traffic updates for The Chateau at Heavenly Village. (formerly known as Project 3). The project will include:

  • two hotel-condominiums with 477 rooms
  • 50,000-square-foot entertainment venue with an additional 21,000 square-foot pre-event area
  • 57,000 sq. ft. of retail/restaurant space
  • 16,193 sq. ft. spa
  • Village Green public park/plaza
  • 717 space underground parking garage
  • proposed pedestrian overpass across Highway 50

Project Update

April 18, 2008
Dear Business Community Member,

At the March 18th City Council meeting Lake Tahoe Development Co., LLC (LTD) presented an update to the council members on the Chateau at Heavenly Village. I would like to also provide an update to the local community.

1. Construction Schedule – Even though construction has paused due to the current credit and real estate markets, the project is still on schedule. This is based upon the 7 day a week work schedule implemented last summer. LTD made a commitment in excess of $40 million dollars without construction financing in place to take advantage of the 2007 grading season. Once construction resumes, the estimated time to complete construction is 14 months. To date, construction costs have been at or below budget.

2. Project Financing – Over the past months, we've been working to finalize project financing. As is apparent, the current capital markets for real estate construction financing is among the most challenging in recent memory. With a $200 million loan required for phase one of this project, we need to secure the best financing available.
In light of today's financial markets over 70% of all large condo/hotel projects are on hold, with the remaining struggling to get financed. There is a much smaller pool of banks willing to make loans and all require syndication; which is each bank committing to a small portion of the total loan amount. We have decided to wait on finalizing financing until an appropriate agreement can be secured. What we're experiencing is not any different than large multi-million dollar companies looking for credit. We have the experience, commitment and internal financial capacity to see it through.
Unlike prior re-development projects at South Shore, the City and the public have no financial liability. This is a first for projects of this type, anywhere! Neither taxpayer dollars nor the City's general fund is at risk.
Once we receive terms consistent with our financial plan, the project will move forward.

3. Lake Tahoe Development – We're confident the market will improve. We've been through three down cycles in the real estate market in Lake Tahoe over the past 30 years and understand what's involved to get through this one. The system will correct itself, as a combination of continued low interest rates, government sponsored programs and consumer confidence is restored. Unfortunately it will take a bit more time.
LTD has invested capital approaching $100 million dollars in this project and will see it to completion. LTD is financially solvent and the project is not in jeopardy.

4. Looking Ahead – While the current status of the economy has folks on hold throughout the Country, this project will move forward to completion. This project is a major benefit to the South Shore's economy, generating tourist related business, which drives room, sales and property tax revenues. These funds are used to pay for City services. It's also a major component in the Stateline re-development plan.
We recently offered a small sampling of units at a sales event in San Francisco. This was to establish price and validate room design and demand. Over $20 million in sales confirmed those facts. The location of this project is truly "one of a kind". It's a first for the South Shore area with the combination hotel, condominiums and conference center. The unprecedented selling prices established in one of the most difficult economic periods, speaks to the value and interest in this product. This project will happen because it is the right product at a very special location and because of the commitment from LTD to the Community.

If you have any questions, please call Weidinger Public Relations, 775-588-2412. If you would like to receive timely updates about the project, you can sign up at http://www.chateauheavenly.com/feedback/impact-signup.

Kindest Regards,

Randy Lane
Lake Tahoe Development Co., LLC
Managing Member