The group of Squaw Valley homeowners who comprised Incorporate Olympic Valley (IOV) issued a press release earlier this week indicating that they intend to withdraw their petition for incorporation before Placer County LAFCO.
IOV’s action follows the results of multiple fiscal studies that determined incorporation was not feasible. The fiscal reviews conducted by RSG Consulting and Blue Sky Consulting, along with the most recent examination by California State Controller’s office (SCO), determined that a small resort community couldn’t survive without several years of substantial subsidies from Placer County or by taking revenue from community neighbors.
The next step in the process likely would have required IOV and Placer County to enter into revenue neutrality negotiations. These negotiations would have focused on Tahoe area transient occupancy taxes (TOT), and the services the county provides through its contract with the North Lake Tahoe Resort Association.
In a letter to LAFCO executive officer Kris Berry this week, Placer County executive officer David Boesch wrote, “Despite the assertions of IOV, the proposed incorporation is not financially feasible; particularly, when considering the revenue neutrality payments that would be due to the County.” For that reason, the County indicated support to deny the application at an upcoming LAFCO meeting.
At the November 19 LAFCO meeting, the SCO handed down its review of the draft Comprehensive Fiscal Analysis (CFA) and confirmed that the initial fiscal study conducted by LAFCO staff and consultants was not riddled with errors as proponents had claimed.
“The detailed and informed work that went into the draft CFA, and the expert review by the State Controller’s Office has lead everyone, with the exception of a few of the IOV proponents, to the rational and logical conclusion that the proposed town is fiscally infeasible,” said Andy Wirth, president and CEO of Squaw Valley Ski Holdings LLC, who also represents Save Olympic Valley (SOV).
Jeffrey Weidel can be reached at [email protected]. Follow him on Twitter at @jeffweidel and visit his website at www.tahoeskiworld.com.
