KINGS BEACH, Calif. — The Placer County Board of Supervisors on Tuesday approved a five-year extension of the county’s North Lake Tahoe Economic Development Incentive Program, continuing efforts to support revitalization and investment in the Placer County portion of the Lake Tahoe Basin through June 30, 2031.Originally established nine years ago, the program was designed to help offset the extraordinarily high costs of developing lodging in the Lake Tahoe Basin, where no new lodging projects of significant scale have been built since the early 1960s. The program incentivizes new and revitalized lodging in our Town Centers to enhance environmental and economic benefits to North Lake Tahoe.“The extension of this program reinforces the county’s long-term commitment to thoughtful reinvestment in North Lake Tahoe,” said District 5 Supervisor Cindy Gustafson. “The program helps encourage projects that support our local economy, improve community infrastructure and enhance the visitor experience while recognizing the unique development challenges within the Tahoe Basin.”The program was created to spur both environmental and economic revitalization in North Lake Tahoe through incentives aimed at attracting high-quality redevelopment and lodging investment.The incentive program includes three primary components:1. Development rights cost offset: This component focuses primarily on Tourist Accommodation Units, or TAUs, required for lodging projects under the Tahoe Regional Planning Agency Code of Ordinances. The county maintains a “bank” of TAUs that may be loaned to qualifying projects. These TAUs are repaid through transient occupancy tax revenue generated by the project, including interest and administrative costs, under a formal agreement with the county.2. Transient Occupancy Tax rebate: This tool helps offset the extraordinary costs associated with new or remodeled hotel and condotel projects by rebating a portion of the new or incremental transient occupancy tax revenue generated by the project. Rebate percentages and terms vary depending on the scope and type of development.3. Infrastructure cost offset: This component supports extraordinary infrastructure improvements tied to redevelopment efforts, including sidewalks, streetscape enhancements, parking improvements and, in some cases, sewer or water infrastructure needs.The program is designed to support two types of lodging projects: new lodging and remodeled lodging. New lodging projects must consist of new full-service hotel developments built within the Tahoe Basin in unincorporated Placer County after May 11, 2021.Facilities constructed within the previous 10 years are not eligible. Remodel projects must involve an existing hotel or condotel in North Lake Tahoe that has operated continuously for at least three years, has maintained a valid transient occupancy tax certificate in good standing within the past 10 years, and has no past-due transient occupancy tax obligations. Applicants must also obtain an approved county building permit and utilize a California-licensed contractor.Participants in the program must meet key requirements, including completing development within set timelines (eight years for new projects, three for remodels), maintaining property standards, complying with county regulations, and collecting and remitting TOT. Eligible projects may then receive annual TOT rebates, subject to county review and approval.The board also approved updates to the TOT rebate tiers for remodeled lodging projects, adjusting building permit value thresholds to reflect rising construction costs and align with a year-over-year change of 31% in the California Construction Cost Index.More information about the program’s history and evolution is available at:https://www.placer.ca.gov/DocumentCenter/View/94273/11A. |
Leave a Reply