After more than a decade of legal battles, Palisades Tahoe has reached a settlement with two environmental organizations, agreeing to scale back its controversial development plans at the North Lake Tahoe resort.
The agreement, announced Tuesday by Palisades Tahoe, Sierra Watch, and the League to Save Lake Tahoe, ends a long-running lawsuit over the proposed expansion project.
"I think this is a monumental day, I think for Tahoe. For Palisades," said Jesse Patterson with the League to Save Lake Tahoe. "When you stay the course and put the lake first but you're willing to have meaningful conversations, you can come to an agreement."
The original project called for 850 hotel, condo, and timeshare units, 300,000 square feet of commercial space, and an indoor water park. But environmental groups argued it would bring heavy traffic, worsen wildfire risk, pollute Lake Tahoe, and urbanize the scenic mountain area.
"Some of the stuff just didn't make sense," Patterson added.
Under the settlement, the number of bedrooms in the project will be reduced by 40 percent. Commercial space in the village area will be cut by 20 percent, and plans for the indoor water park have been dropped entirely.
"The conversations were really rooted in coming to common ground and finding a way that we could evolve the resort forward and invest in the community," said Amy Ohran, president and COO of Palisades Tahoe.
One of the most significant terms of the agreement permanently protects the land at the base of Shirley Canyon, a popular hiking area, from any future development.
"We have found alignment and common ground on a plan that really works to move us forward," Ohran said.
Community meetings on the revised plans are expected to take place in the coming months. Placer County's Board of Supervisors must still approve the project before construction can begin.
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