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Council approves Old Colony Inn tentative subdivision despite debate over short‑term rentals and limited deed‑restricted units

South Lake Tahoe City Council · January 28, 2026
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Summary

The council approved a tentative subdivision map allowing a 30‑unit multifamily project at 3794 Montreal Road to be subdivided into condominiums; the project includes two deed‑restricted "achievable" units and environmental mitigation for an adjacent SEZ, but critics said most units will function as short‑term rentals and yield little workforce housing.

The South Lake Tahoe City Council on Jan. 27 approved a tentative subdivision map that will allow the Old Colony Inn residence project at 3794 Montreal Road to be converted into airspace condominiums.

John Hitchcock, the city’s planning manager, told the council the project was approved by the planning commission in September 2024 and qualifies as infill under TRPA rules. He said the underlying project was found CEQA‑exempt as an infill Class 32 action and that the developer completed mitigation and SEZ restoration work above what was required. "The proposed project results in a density of eight units per acre and uses TRPA‑verified land coverage and banked tourist units on site," Hitchcock…

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