KINGS BEACH, Calif. – The Placer County Board of Supervisors met at the North Tahoe Event Center on Tuesday, June 24, discussing a number of items concerning the North Tahoe region, including a decision regarding the 39 North development.

Prior to the development’s item, Placer County staff presented on the history of Placer County investments and incentives since 2012 aimed at supporting economic vitality and environmental beneficial redevelopment amid a handful of factors indicating economic decline. One program formed out of that history, which included numerous economic studies, is the North Lake Tahoe Economic Development Incentive Program. Established in 2015, the program offers development rights and infrastructure costs offsets, and banked tourist accommodation units (TAUs).

In 2020, further studies revealed a transient occupancy tax rebate program could further address challenges, which was thereafter added to the program.

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At this meeting, the board had two items related to applications taking advantage of the program’s incentives.

39 North economic development subsidy

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One of those items was a public hearing on a proposed economic development subsidy application from the 39 North developers for a TAUs transfer and TOT rebate. It was an item previously brought to the board in January 2024, which did not move forward at that time due to the board requesting staff work with the developer and return with a revised proposal.

Phil Mader, president of Kingsbarn Capital & Development, the company behind the development, presented on the revisions made since that 2024 meeting. The revisions modify the design, height, and reduce the amount of units. Further details of the revisions are outlined in the article titled, 39 North update met with both gratitude and criticism.

Their application requests 106 TAUs from the county’s current 146 banked units.

The TOT rebate request returns 80% of the newly-generated TOT from the 132 proposed hotel units, as well as the 38 proposed condo-hotel units, to the developer. Of the remaining 20%, 10% will go to payback the TAUs and the other 10% will go to the county’s general fund. The TOT rebate is estimated to total between $22,876,480 – $30,947,840 over the 20-year rebate period.

During the hearing, public comment was overall opposed. Many said the timing was inappropriate as the project has not yet been approved, and environmental studies have not yet been conducted. Many lacked trust due to the lack in transparency on the project’s financing related to the county’s parcels, where the project is proposed to be built.

Mader addressed the criticized timing of the application , explaining they needed to know that the TAUs would be available, which it critical for them to move forward.

County counsel clarified that the agreement before the board does not commit anything until the environment clearance is issued for the project.

After much discussion, the board ultimately approved the application, but not before Cindy Gustason called for more public transparancy on all the financial records and subsidies that have gone into the development.

“I think that is a very fair request,” she said.

evo Hotel economic development subsidy

The board also conducted a public hearing on and approved the economic development subsidy to Campus Tahoe LLC for the remodel of the evo Hotel (formerly known as America’s Best Value Inn), which received a very different tune in public comment.

There was overall public approval marking it as a strong example of what the incentive program should support with many valuing the project’s readiness, community benefits and size.

The project has already been renovated and reopened in Tahoe City.

The evo Hotel is the first to apply for the TOT rebate within the incentive program’s remodel category. Like the 39 North project, the evo will receive 80% of newly generated TOT collected from the hotel as a result of the increased hotel fairs due to the upgrades. The rebate period runs nine years for an estimated return of $1,010,547.

Agreement with Truckee North Tahoe Transportation Management Association

The board approved three agreements for continued transportation services in the North Tahoe region. The agreements between the county and Truckee North Tahoe Transportation Management Association (TNT-TMA) are for the fiscal year 2025-2026 for Tahoe Area Regional Transit (TART) marketing services (up to $174,720), summer park and ride services (up to $37,818), and North Lake Tahoe Express ($152,612), a shuttle from the Reno-Tahoe International Airport.

TNT-TMA is a nonprofit that offers solutions to transportation in the Truckee-North Tahoe Resort Triangle.

The organization shared some of the successes over this last year, which have included significant growth in winter ridership for the park and ride program with a 60% increase from the prior season. People are using the service even when resort parking reservations are still available, constituting a behavior switch.

A service launched in 2023 is the North Tahoe Workforce Vanpool Program and has already served 100-plus employees with 16 active vanpools. 100% of the respondents have said it allows them to work in the region.

TART annual marketing has increased website traffic by 26% year over year, showing an increase in visibility and public engagement with regional transit.

TNT-TMA announced a summer park and ride pilot from Northstar Village to Kings Beach, starting July 1 and running through August 29. The free shuttle service runs 9 a.m. – 5 p.m. with extended hours Friday until 10:30 p.m. for Music on the Beach.

The organization plans to expand its Winter Park and Ride Program (agreement forthcorming) to increase frequency to Palisades as well as a midday loop to Sugar Bowl. Northstar is also receiving an additional day of supplemental service.

The airport shuttle has recently received an improved booking platform to encourage increased ridership.

Lease to Locals Program and Workforce Housing Preservation Program Update

The board approved a $500,000 request in TOT funding to its Lease to Locals Program. The program has been incentivizing property owners to change their rental properties from short-term rentals to seasonal and long-term rentals since the county’s program adoption in July 2022. In the past, the program has received $1 million in TOT for years one and two, as well as $300,000 from tourism business improvement district dollars for year three and another $200,000 for year four. The program is intended to provide housing for the missing middle, requiring at least one tenant to work locally for at least 20 hours per week.

Placemate, Inc., the program’s administrator, gave an update on the program’s third year, which is nearing completion. There are currently 35 properties in the program, offering 78 bedrooms, and housing 87 people. That include 65 local workers.

The administrator has seen the program remain consistent year over year. From its start in 2022, the program has had 114 properties and housed a total of 270 people with 213 of those local workers.

Placemate reports the potential for the program’s development of long-term rentals. An end of lease check, wherein owners no longer receive the cash incentive, revealed that 70% of property owners said they will continue to rent long-term. And after a six-month or longer check in, 66% have said they would continue to rent long-term.

The program’s volume has stayed consistent with more property owners actively applying and others indicating interest.

The county also provided an update on its Workforce Housing Preservation Program (WHPP). The program aims to deed restrict homes for the local workforce, create a secondary housing market for local workers, and provide homeownership opportunities for the local workforce through payments to qualified local workers to purchase homes.

The program then deed restricts the purchased home, requiring occupancy by a local worker for 55 years, even if the property is sold.

Since its inception, the program has secured fourteen deed restrictions for a total of $1,522,800. The average deed restriction disbursement is $108,771 per property. There have been two condominiums, one duplex and 11 single-family homes purchased through the program with original sale prices ranging from $340,000 to $980,000

Business Improvement District Renewal

The North Lake Tahoe Tourism Business Improvement District (NLTBID), which has generated self-assessed funds from lodging, retail, restaurants and activities since July 2021, is set to expire in June of next year.

The money collected through the NLTTBID is managed by the North Tahoe Community Alliance (NTCA) with oversight from the NTCA Board of Directors and corresponding committees. The program has invested $33 million of TOT-TBID funds into the community to date for housing programs, transportation improvements, and others community benefits.

The NTCA presented an update on its work to renew the business improvement district, this time, for another 10 years. Over the next year, renewal processes include business outreach, plan development and approvals and a petition drive, once again garnering support from regional businesses.

The NTCA also introduced its emergent grant cycle, which is one of three of its grant cycles for the TOT-TBID program. The emergent grant cycle is intended to fund urgent projects that fall outside of the annual grant cycle process.

North Tahoe Shared-Use Trail Segment 1

The board approved the plans and specifications for the first of three North Tahoe Shared-Use Trail segment. This segment will run 2.5 miles from the North Tahoe Regional Park in Tahoe Vista to the county’s right-of-way at Carnelian Bay Avenue.

It’s a part of an overarching Resort Triangle Trail network linking communities within the North Tahoe region. Managers hope to begin construction in the fall with completion aimed for 2026. It’s estimated to cost over $8 million with funding from the California Tahoe Conservancy and TOT funds.

Budget approval

The board adopted its fiscal year 2025-2026 budget with no changes following a June 10 public hearing.

The adoption included a county operating funds budget totaling $1,366,760,465, an increase of $143 million from the prior year due to an increase in operating fund requirements and planned capital fund expenditures, mostly on roads.

The board also approved the proprietary funds budget, which goes to things like building maintenance, IT and transit, for a total of $227,441,257, increasing $29.2 million from the prior year.

Taxes and intergovernmental revenues are still the two largest revenue sources of the county, together making up around 60% of all budgeted sources. Other sources include transfers, service charges, permits and license fees.

Salaries and benefits, in addition to services and supplies, together make up close to 70% of county expenditures.

Olympic Valley impact fee increase

Following a public hearing, the board approved the increase of Olympic Valley Public Service District’s Fire Impact Fee. The fee is imposed on new residential and non-residential developments within the district’s service area and supports one-time costs required to expand the district’s dire department facilities, apparatus, and equipment in response to the increased demand for services from new development.

The action increases the following, effective Aug. 25:

• All Residential – $2.81
• ADUs less than 750 square feet – Exempt
• ADUs equal to or greater than 750 square feet – $2.81
• Retail/Commercial – $3.13
• Office – $4.03
• Industrial – $2.24
• Hotel/Lodging – $2.61

Re-Entry Program for Counseling and Education Services

The board approved an agreement with Sacramento County Office of Education for counseling and educational services after hearing testimony from a Tahoe resident graduate of the program.

The program provides a path forward from incarceration and help navigating the criminal justice system in order to reduce further offenses. It connects people with resources to address the root causes of criminal behavior, including cognitive behavioral therapy classes, substance use disorder services, fentanyl and synthetic opiate education programming, a theft diversion program, mentoring, employment readiness, training and placement.

A Tahoe resident shared how the program not only helped him navigate the system after a second DUI and probation violations, but also how the program allowed him work through past traumas and their influences. He happily shared his upcoming two year alcohol sobriety mark to which he received an applause.

Honoring Tahoe local, Theresa May Duggan

The Placer County Board of Supervisors honored long-time North Tahoe local, Theresa May “Tee May” Duggan for her contributions to the North Lake Tahoe community with a commendation.

Many shared memories and kind remarks at the meeting honoring the business owner turned advocate, whose work sparked the North Tahoe Business Association’s formation. Duggan also established the North Lake Tahoe-Truckee Leadership program, which generated close to 500 graduates since 2004. Some of those graduates shared their gratitude and their experience of Tee May at the meeting.

Duggan’s advocacy improved the built environment of Kings Beach and those who live here. Her influence brought an expert consultant to the area through a grant, laying the foundation for the Kings Beach Central Core Improvement Project, which was a $50 million project completed in 2017.

Her work in raising awareness of substandard housing, resulted in a $33 million affordable housing project. Her work didn’t stop there. She also served on the Tahoe Truckee Community Foundation board and brought multiple nonprofits together to form the Sierra Community House.

The last person offering remarks at the commendation was Duggan herself, who said, “I guess if you hang around long enough, eventually your name gets called and suddenly people start saying all sorts of flattering things about you.”

She then noted the Kings Beach improvements as a group effort.

“Together we turned Kings Beach into a great place to visit and an even better place to live.”

Duggan ended her address, noting there’s still much work to do and charged the board to continue doing right by Kings Beach.

“We have high standards.”

To view the full agenda and meeting recording, visit placer.ca.gov/8764/Board-of-Supervisors.