by Mary Thompson - Tahoe Daily Tribune
May 24, 2000
The city of South Lake Tahoe may have a battle in court over its use of eminent domain power in the $350-million
Park Avenue Redevelopment Project.
The city has already acquired 13 parcels within the project boundaries, which is outlined by U.S. Highway 50 and
Park Avenue. It plans to turn the property over to developers this building season for construction of a quarter-share
hotel and a gondola to be built by American Skiing Company, owner of Heavenly Ski Resort. A retail complex with
shops, restaurants and a six-screen movie complex will be built by Trans-Sierra Investments.
To carry out the project as planned, the city needs to acquire one more piece of land - the privately owned Van
Sickle Road that stretches from Park Avenue to the Harrah's Lake Tahoe parking lot.
Without it, the entire Park Avenue Project, which has been in the making for more than eight years, would have
to be redesigned, the city's redevelopment manager said.
"If we don't have the Van Sickle Road, we'll have to re-design the project," Judith Von Klug said.
The Van Sickle Trust, which owns the property, is a willing seller. But some of the terms of the acquisition are
disputable by both sides at this point.
And most of the argument boils down to 6 feet.
Eminent domain requires the city to take only the property that is needed to carry out the project, Von Klug said
at a special City Council meeting Tuesday.
The road is documented as being 56 feet wide for the duration of its length, but the city only needs a 50-foot
width to turn it into a private road that would be used for traffic coming out of the transit center, which is
planned to be built in the next phase of construction in the Park Avenue Project in 2002.
The Van Sickle Trust, which also owns two parcels abutting the road, wants the city to take it all or nothing.
"If you're going to take it, take the whole thing," said Deborah Palmer, attorney for Van Sickle.
There are other objections that Palmer said need to be addressed in the legal description of the property.
The gondola's aerial easements are set at 27 feet over the Forest Inn, which sits on Van Sickle's property, and
the building measures at 29 feet high.
At this point, the two parties can't agree on an appraised value either.
Initial assessments by the city place a "nominal value" on the property. Meanwhile, the owner believes
the value to be about $300,000 to $500,000 when potential land coverage is considered.
Von Klug said valuation of the property can still be negotiated.
"We will and do make efforts to solve the valuation problems," she said.
Despite the differences, the City Council approved the resolution stating a need for possession of the property
as the document was written with the size of the acquisition at 50 feet wide. The resolution sparks the legal process
for eminent domain.
The decision came after the council conferred with legal counsel in closed session.
The legal counsel advised that any objections the property owner raises can be filed as a complaint to the eminent
domain process in court. The resolution passed 4-1, with Councilmember Bill Crawford dissenting.
Palmer said that her client, who has owned the property for more than 40 years, does not object to the redevelopment
project or the city's taking of the property. She said it's the objections she raised at the council meeting that
are not acceptable to Van Sickle.
"If they can't be resolved, it will result in litigation," Palmer said.
In other council business:
- Business owner Lou Pierini's request on the status of the Ski Run Redevelopment Project was continued to the
next meeting.
- The consideration of the proposal to finance the acquisition of the Stateline Shell station by Holiday Inn Express
was heard, and postponed for discussion later in the year. No action was taken on this matter by the Redevelopment
Agency.
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