Dollar Creek Crossing stalled by funding gap; developer seeks $18.5M local subsidy

County housing project planner Marie Maniscalco told the board the developer pursuing Dollar Creek Crossing (3205 North Lake Boulevard, Tahoe City) provided a revised site plan, schedule and financial pro forma as the county’s exclusive negotiating period neared expiration. The developer’s pro forma assumes a county subsidy of approximately $18.5 million to make an affordable-oriented project financially viable, Maniscalco said.

“Developer's proforma included an anticipated county contribution of approximately $18.5 million towards the project,” Maniscalco told the board, while staff explained it had identified roughly $1 million in state funds and about $2.5 million in TOT interdepartmental funding previously recommended through the North Tahoe programs — but not the full requested local contribution.

Because the county has not yet identified or secured the total local subsidy the developer requested, staff declined to present a developer agreement for board approval and said the exclusive negotiating rights (the URNA) are set to expire June 30. Housing staff emphasized they are working closely with the board’s housing funding ad hoc committee to identify potential funding strategies, including bonding against stable TOT streams and leveraging launchpad or other local programs.

Developer representatives attending the meeting said they remain committed to working with the county and offered to pursue alternative site plans or a smaller-scope rental product targeted to workforce housing to reduce subsidy needs. Several public commenters urged the county to accelerate a predictable funding stream and suggested using bonding, TOT commitments or other tools to support the Tahoe-area project.

Next steps: staff will continue discussions with the ad hoc housing funding committee and explore potential local-financing mechanisms; no developer agreement was executed at the June 9 meeting.