Ben van der Meer of the Sacramento Business Journal recently reported on the ongoing effort to incorporate the Olympic Valley area of Lake Tahoe into a city and came to the conclusion that the effort would be unsustainable and be bad for the residents of the Olympic Valley as well as the Lake Tahoe Community as a whole.
Moving forward with the city hood would essentially create a giant debt for the residents of the area at the latest by 2018. Once that happens the budget will essentially be running in the negative due to massive shortfalls in tax revenue. This deficit spending is predicted to start around 1 million dollars per year and grow to as high as 1.8 million within a ten year period.
A prominent land use development firm determined that it is not a good fiscal plan to move forward with the new developments. RSG or Resources System Group found that the proposed new hotels and vacation properties alongside retail properties could not be sustained without significant revenue shortfalls. The massive increase in commercial property will be a very high cost on the city and all of it’s residents while not necessarily providing adequate revenue outside of the tourist season.
For anyone not directly benefiting from the new land use plans it makes absolutely no sense to turn Olympic Valley as a single city. They should remain under the arrangement that they have now in order to save money for now and the future. The population of the valley simply cannot sustain forced growth and the entire area will become economically depressed as taxes increase and jobs and productivity decrease due to residents leaving.