Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Land Use Development topic
No spam. Unsubscribe anytime.
Council approves Old Colony Inn tentative subdivision despite debate over short‑term rentals and limited deed‑restricted units
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 said.
During public comment and council questions, opponents and several council members pressed whether the units would be used as long‑term housing or as overnight rentals. Councilmember Scott Robbins argued the 30 units would effectively add overnight accommodations rather than permanent housing, and said the project should yield more deed‑restricted units. "Two deed‑restricted units is not enough," Robbins said during deliberations.
Developer representatives and supporters said the project provides environmental gains and some housing benefits that were not required. Attorney Nick Exline and applicant Mike Wishmire highlighted a TRPA‑approved SEZ restoration on the site and said converting banked tourist accommodation units on site did not consume regional residential allocations. "This was using what was existing on‑site that was banked," Exline said, adding the owner voluntarily included two deed‑restricted units and estimated roughly $450,000 in TOT revenue.
Council members also noted that because the units fall below the city’s size threshold for mandatory in‑lieu fees, the project does not trigger additional affordable‑housing fees. Planning staff confirmed that local ordinance and TRPA rules, as applied, require no further in‑lieu contribution for these particular unit sizes.
After roughly two hours of public comment and council discussion — covering environmental review, SEZ restoration, walkability benefits and housing trade‑offs — Councilmember Horgan moved to approve the resolution making the required CEQA and subdivision act findings and to adopt the tentative map. The motion was seconded and carried.
The council’s action authorizes the applicant to file a final condominium map within the statutory approval period; staff said the tentative map approval gives the applicant 24 months (with possible extensions) to record the final map. The council noted two units would be deed‑restricted as "achievable" housing under the local/TRPA definitions but acknowledged critics’ concerns that the majority of units could be used as vacation rentals in the tourist core.
