Tahoe Sands Resort Redevelopment


Artist's Conception - Click for A Full Panoramic View (60k)

Supplement to August 24, 2001 Brochure
Click Here to read the Brochure

Questions & Answers

Background: Your Board has spent the last several years clearing the messes left by the original developer and several follow-on developers. By aggressive and inventive management, your Board has brought the Tahoe Sands Resort and Association out from the brink of bankruptcy to now have positive reserve funds and our assets as well as our property boundaries defined. YOU, the Association, now own all Resort facilities and Association interests. We are finally in control of OUR Tahoe Sands Resort and can now legally determine the future of OUR Tahoe Sands Resort!

So:

What am I voting for?

You are voting to allow your Board to continue their inventive management by spending funds to Redevelop the Tahoe Sands Resort into a resort each of us can be proud of with new buildings, increased amenities, and greater value for each of our Association members. You are voting your continued trust for your Board members to keep improving our Tahoe Sands Resort. Specifically, you are voting to allow the Board to make capital expenditures that will exceed $60,000 in 2001 (the 5% of budgeted gross annual expenses) and additionally in following years to support Redevelopment. You are also authorizing your Board to secure loans to pay for some of the Redevelopment. The loans will encumber the resort property and be repaid as described in following paragraphs.

What does the Voting Card 5% statement mean in English?

Your Association Governing Documents limit the Board's authority to spend no more than 5% of the budgeted gross expenses of the Association on capital expenditures. In other words, the limit for spending on new construction, major repair construction (roof), or similar capital projects or related activities (architect, engineering) is about $60,000 this year. To expend more than this or encumber the property or Association, the Board must have your approval as defined in the Association Governing Documents. Since the development is phased, the Board does not expect to have more than $4M in encumbrances at any one time.

What is the expected total cost for the lakeside redevelopment?

Lakeside redevelopment is estimated to cost between $12- and $14-million.

How were lakeside redevelopment costs estimated?

Discussions with architects and builders, and comparisons with recently completed similar projects in the Tahoe Basin indicate that the concepts proposed can be built for approximately $150/sq ft for living space and $250/sq ft for common/commercial space leading to the $12- to $14-million estimate.

How will my annual assessment increase if I vote YES on Redevelopment?

The Board's is committed to not increasing annual assessments to fund the Redevelopment. New buildings obviously cost less to maintain than our existing old structures and support facilities (boilers, pumps, etc.). This cost savings would be used to offset inflationary increases in other areas (labor costs for house keeping and support staff, utilities, etc.). The building design will incorporate as many low maintenance concepts as possible within the budget so maintenance costs will stay low for many years. However, there is no guarantee assessments will not need to be increased during the Redevelopment period as maintenance and repair of the current Resort structures, inflation, labor and utility costs are ongoing.

How will my annual assessment change if I vote NO on redevelopment?

The Board will likely be faced with increasing the annual assessment considerably faster than inflation in order to increase reserves for rebuilding the cabins and major repairs on the Lanai building. The alternative is to pass a special assessment to build reserves. For those of you not familiar with the strict building and development regulations in the Tahoe Basin imposed by the Tahoe Regional Planning Authority (TRPA) and Placer County codes, most of the same conditions imposed on us for Redevelopment will be imposed even if we just "rebuild". These conditions to rebuild could include lake setbacks of 100 feet, increased view corridors, and decreased land coverage just to name a few. The impact from just "rebuilding", smaller cabins and possibly loosing the two cabins closest to the lake. No new units could be added, therefore, no new sales to offset "rebuilding" costs.

What methods will be used to pay for the Redevelopment?

Several methods to fund Redevelopment were listed in the brochure. These included; 1) sales of new memberships acquired from previous developers and foreclosures, 2) sales of new memberships for the new units, 3) owner upgrades to larger units (studio to 1-Br, 1-Br to 2-Br, studio to 2-Br), 4) sale of the properties above the highway, 5) conversion of the properties above the highway to leased/rented residential use by local residents, and 6) loans against the Association assets. The loans would be repaid from normal Association income. Of course, existing owner upgrades are the existing owners choice. No one is required to upgrade.

Who will sell the new units?

Neither the Association nor the Board can sell units. A licensed real estate broker for existing sales currently represents us. A broker cannot be chosen for new sales until the Association members have approved the Redevelopment.

Why was the distribution of no studios, 15 1-Br, & 65 2-Br units chosen or the total number of units set at 80?

Based on land coverage, view corridor, 100-foot lake setback, and other TRPA and Placer County requirements, and accounting for the fact that in today's market, sales demand is highest for 2-Br units, we set out to determine what could be fit on our lakeside land. The result of this first cut distribution was 15/65 and provided for excellent new common areas and support facilities. Remembering what is presented is a concept, the number and distribution of units is not set as final. Architectural and engineering workups along with TRPA and Placer County approvals will determine the final configuration. Specific floor plans for studios were not designed because of the costs of construction and limiting flexibility in use. In other words, it costs less to build fewer different floor plans and studios can be made out of larger units simply by closing a door. So you studio owners (I have two studio weeks) were not forgotten.

How will lockouts be used?

The term lockout is very special meaning in the Timeshare industry. It means that a unit can be divided and used as two or more individual units. Because every lockout unit counts for one "rental unit" in the Tahoe Basin, and there are a limited number of "rental units" available and each is very costly to purchase, we do not plan to develop lockout units. We will have units that can be reduced in space by locking door(s) so the occupants cannot use that space. The locked out space will not be available for anyone's use while locked. That is how we can convert a 1-Br or 2-Br to a studio or a 2-Br to a 1-Br. This concept gives the maximum flexibility while keeping our "rental unit" count constant (80 in this initial concept).

Will existing Studio/1-Br/2-Br owners be required to "upgrade"?

No. All existing owners will be accommodated in Tahoe Sands Resort property units without having to do anything. Obviously, no new studio units and few 1-Br units will be sold unless you do upgrade and your unit can be resold. Existing studio and 1-Br owners who choose not to upgrade to a larger unit will be accommodated.

If Redevelopment means my unit has new added value, can I then trade it for a larger unit at no cost?

Redevelopment will bring added value to every Association member's holding simply by having new and larger rooms, more common areas and resort features. However, this added value does not mean that you can trade your existing unit to a larger unit at no cost.

What will be the Redevelopment Building features (elevators, parking, luggage carts, massage)?

Final features are not yet set. We want everything! We are however, realistic. We must work closely with the architects, engineers, TRPA, and Placer County officials to get the most value within our budget and their regulations. All handicap regulations will be strictly followed so we can accommodate our Association members with special needs. Elevators for a 3-story building cost about $60-100k depending on ground conditions and other regulations and will be addressed in the designs. Parking, as shown in the brochure, will likely be farther from units. We would then want to at least have luggage carts to make your move from your car to the room and back easier. We are also considering covered walkways to keep you dry. The beautiful fireplace you saw in the brochure is really possible in every unit with today's building methods. With the Redeveloped resort may come new amenities. I just stayed at very nice resort on South Shore. They have on-site, on-call massage service several days a week. This service is at no cost to the resort, fully funded by the users. Quality resorts attract quality services. They also have a very active activities coordinator. She had many great tours and ideas for your week's entertainment. Also great kids activities (I was too old to participate). They have about the same lake frontage and beach setback as our Redevelopment would have and have made excellent use of the area.

How will our Lake view be maintained with this site plan?

Remember, the brochure only presented one concept. One of the priorities of our Redevelopment Plan is to maintain or improve the view each unit has of the lake. One way is to repeat the concept used in the Lanai building. The wall is angled to provide that lake view. Larger individual balconies are planned which will provide even better views. The center building will have fabulous views. We have looked at angling the two outside buildings to improve views. The end units of the two outside buildings will have the best views possible and likely will be the most sought after units, as the lake front cabin is now. There are other ways and building configurations we have not yet explored to provide that lake view. TRPA and Placer County regulations will dictate how we implement some of our options.

Will our Redeveloped Resort have a boat dock & launch ramp?

We will aggressively pursue getting approval to add a boat dock to our resort. We will also aggressively pursue getting approval to add several buoys for our members use. Since there are launch ramps in close proximity to our Resort, we will not pursue having an onsite launch ramp that would require onsite trailer parking for which we do not have room.

Who will select the architect, engineers, construction firms, and other necessary consultants?

As has been done to date, the Development Committee finds firms interested in working with us on our Redevelopment project. The Committee reviews the proposals, interviews references, and selects the best qualified for presentation to the Board. The firms make presentations to the Board. Board along with Development Committee makes the selections. Price, product quality, number of similar projects, ability to bring in project on time and within budget are just some of the qualities that determine best qualified.

How will the construction be phased? When would the Redevelopment be completed? What amenities during construction? What will our trading power be during construction?

Remember, the Board and all the Redevelopment Committee members are also Association members. We use our Resort every year and also do not want to be impacted by the construction. During the Redevelopment, owners will have the option to stay in the units above the highway. It is planned to use as much modular construction, done offsite, as possible. This will eliminate considerable noise and dust at the Resort. It is also planned to start building (foundations & roof cover) in the fall and build interiors during the winter. These are the lowest use times and definitely the lowest onsite recreation times. The initial plan for phased construction is to build the first building immediately in front of the existing office during year 1. That completed and able to accommodate cabin owners, we would replace the cabins with the second building during year 2-3. These two buildings and the units above the highway will accommodate our Association members while the Lanai building is demolished and the last complex and pool facilities are built during years 4-5. The office, common area, beach, and existing pool complex will likely be available until the last complex is completed. We will keep all existing amenities for as long as possible or replace with new earlier when possible. The Tahoe Sands Resort has never had problems trading into other resorts. We believe even during construction we will maintain that trading power. There are many details that have not been resolved at this early planning stage. The Board and Redevelopment Committee have spent considerable time on these subjects with our consultants and architect and believe we can maintain a great resort experience even during construction.

After the Redevelopment is completed, what will be done with the properties above the highway?

There are serious shortfalls in affordable housing in the North Shore area. Rolling the conversion of these units to residential in our Redevelopment Plan can give us considerable leverage with the Regulating Agencies. We may be able to have more of our amenities approved like higher buildings, less view corridor from the road, and many other trade sanctions. The conversion would be the last phase of our plan. The income generated could be used to pay off Redevelopment debt and keep annual assessments lower. It is even possible that we could expand the number of residential units and increase our income. Alternatively, these properties may be sold to generate additional revenue.

What other alternatives, such as selling the resort to a developer, were reviewed for resort redevelopment?

The Board has considered many ways to improve our Resort. They have spent the last several years getting us out from under the burdens left by all the developers that touched Tahoe Sands Resort. We are now in control of our Resort's destiny. The proposed Redevelopment Plan with financing alternatives is one that will work and provide Association members with the maximum Resort value and still meet all TRPA and Placer regulations.

What is the definition of Member in good standing so our vote will count?

You are a member in good standing if all your Assessment(s) are paid in full by July 23, 2001. If you are unsure of your standing or owner number, please call the Tahoe Sands Resort at 1-888-546-7575.

What will our RCI rating be after Redevelopment?

We are confident we will have a Gold Crown Resort or better rating after Redevelopment.

Come on up to your new lakeside unit!

The Tahoe Sands Board needs your help. We propose creating a new lakeside Resort, retaining the best things from the old; great views, open common areas for relaxation and recreation, and the sunniest beach at Lake Tahoe, while adding all new; larger units, spa(s), a spacious pool and deck, recreation/multi-use room(s), and more!

The time has come for you, the Association members, to give direction to the Tahoe Sands Board of Directors. What to do with the Tahoe Sands Resort; rebuild or continue to repair?

As most of you know, the Tahoe Sands Resort was put together with several properties containing an old motel and rental cabins. As much as members love the character of the cabins, they are small and very old, with some dating back to the 1930's and are at
serious risk of falling apart without major reconstruction efforts. The cost of maintaining and repairing them is very high and climbing. This maintenance and repair cost is reflected in your annual assessments, which will increase at a higher rate in the future if redevelopment does not occur soon.

Redevelopment will require a substantial commitment of money and tremendous dedication of time and expertise on the part of the Board and Association Committees. The majority of expenditures so far have been aimed at finding out what the Association actually owns, acquiring all outstanding Resort interests from past developers, surveying the property, and determining what is possible in redevelopment.

After considerable effort, developer interests no longer hinder the Association. The Board believes we can redevelop the resort and finance it ourselves through sales of memberships recently acquired from previous developers, new units that could be built as part of the redevelopment effort, owner upgrades to larger units, sale or conversion of the upper lands to residential units, and Association loans. The redevelopment process is estimated to take 5 years with ground breaking possibly as early as September 2002. The Board would limit the amount of encumbrance to $4M at any one time over the 5-year expected development. Financing for that amount will come from sales of the 20 new units being created, upgrades by existing owners, and Association loans. With new buildings, the maintenance costs will be lower which in turn will keep your annual assessment from rising as rapidly as will be required without Redevelopment. The process requires the services of professional, consultants, architects, and engineers before approval from Placer County and the Tahoe Regional Planning Authority (TRPA) would allow groundbreaking.

A decision to repair or redevelop must be made NOW. Before the Board continues any further along this path, we need to determine the level of support within the Association for redevelopment. Do we spend a lot of money reconstructing our small old buildings or do we tear them down and build new? Please examine the following concepts in sketches and words for redevelopment, and remember, these are concepts, and let us know if YOU want us to create the new LAKESIDE Resort.

Lake Tahoe Basin is a unique environment. The quality of life that attracted us to invest in this area and our Resort needs protecting. As you examine the conceptual sketches, drawings, and pictures developed by your Board, the Development Committee, and our consultants and architect, realize that removing the asphalt drive and parking from the beach area will open the area for increased recreation opportunities and lake enjoyment. We will also make an extensive effort to get the planning agencies to approve a boat dock for our Resort and your enjoyment. We can create a safer, more secure lakeside Resort, shielded from the highway traffic and noise by moving parking to the highway end of the property and adding a planted buffer area along the highway. Yet to be developed beyond the concept stages is a multi-story office, reception area with covered entry, and recreation/multi-use rooms. With a more efficient use of the land coverage we can increase the pool, spa, and play areas while providing increased environmentally friendly areas as required by the Planning Agencies.

We believe we can develop 80 units on the lakeside property, bringing everyone to the new lakeside Resort units with a lake view for all. This is an increase of 20 more units for your enjoyment. The 80 units could be developed into 55 2-BR units with about 900 sq ft of space and 25 1-BR units with about 700 sq ft of space. WHOA you say! What happened to my studio? When you see these new fabulous units, we know you will want to upgrade to a larger unit. However, if you really can't, the new units can be configured into a studio with a full kitchen. Of course, handicap accessible units are in the plan.

After the lakeside Resort development is completed, the properties above the highway could be converted to residential housing, something badly needed in the Tahoe Basin. This conversion would earn us considerable trading power with the Planning Agencies. This conversion would also provide us with an income source to help keep your assessment lower in the future.

The timing is perfect to start Redevelopment. It is envisioned that construction can be phased so that there will be minimal impact to your vacation week. As one block of new buildings is being built, the other Resort buildings will simply have higher occupancies. Redevelopment will bring added value to everyone's Resort week both in real value and in vacation enjoyment.

You may contact the Development Committee Chair, Paul Pugner at sands.pugner@att.net or (916) 965-6669 for additional information.