Palisades Tahoe has reached an agreement with Keep Tahoe Blue and Sierra Watch to settle litigation challenging proposed development in Olympic Valley.

The organizations have issued the following shared statement:

“Sierra Watch, Keep Tahoe Blue, and Palisades Tahoe negotiated in good faith to find a solution that effectively ends the fourteen-year conflict over Olympic Valley while supporting the social, economic, and environmental needs of Olympic Valley and the Lake Tahoe region."

Under the settlement, Keep Tahoe Blue says all parties have agreed on a revised blueprint for the Village at Palisades Tahoe Specific Plan that:

* Reduces the total bedrooms within the Specific Plan by 40%

* Reduces total new commercial space by 20% in the Specific Plan main Village area

* Affirms the permanent elimination of an indoor waterpark within the Village Specific Plan area

* Protects the land that was proposed for development at the base of Shirley Canyon by creating a conservation easement, preserving the land for recreation and public trail access in perpetuity; and

* Prevents additional development within the Specific Plan boundary for 25 years

If Placer County approves the revised blueprint, the agreement would end the conservation groups' legal challenge to the County's 2024 approvals.

DECEMBER 5, 2024: 

The League to Save Lake Tahoe has filed a lawsuit formally challenging Placer County’s approval of the Village at Palisades Tahoe Specific Plan alleging that the development would worsen traffic congestion, increase air pollution, erode roadways, and degrade water quality in the Lake Tahoe Basin.

“As a solutions-based organization, litigation is an option of last resort. To protect Lake Tahoe, we were left with no choice in this case,” said Dr. Darcie Goodman Collins, Chief Executive Officer of the League to Save Lake Tahoe. “We have met repeatedly with development representatives and County officials to urge them to consider alternatives that would mitigate the environmental impacts of this project. But they were not interested. We are not opposed to the modernization and expansion of Palisades Tahoe, but we must take a stand to Keep Tahoe Blue.”

Last month, the Placer County Board of Supervisors voted unanimously to approve the plan. 

“We appreciate the Board’s decision, the extensive, comprehensive work of Placer County staff and their environmental consultants, and the involvement of the community in this process. We’re excited to move forward with the much-needed creation of in-valley workforce housing in the first phase, and for our community to start benefiting from the infrastructure and other improvements this plan will deliver,” said Amy Ohran, Palisades Tahoe president and COO. 

“Throughout this lengthy process, we have actively listened to and incorporated constructive community feedback into the plan. It’s important that our community know that we’re not done listening; there will continue to be opportunities to share feedback as the next steps related to this plan get underway.”

The lawsuit says the proposed development at Palisades Tahoe calls for nearly 300,000 square feet of commercial space, almost 1,500 bedrooms in up to 850 units, and over 2,000 additional parking spaces. It says the The Village at Palisades Tahoe’s own environmental reports indicate the project would create 3,300 new daily car trips on the busiest days, ultimately creating more air pollution. 

Palisades Tahoe released this statement in connection with the lawsuit:

We will continue to work diligently with Placer County as they defend the project and the environmental studies under CEQA.

The environmental studies related to the project were performed by third party professionals hired by the County and conducted to ensure the project would adhere to CEQA statutes and guidelines.

This project has been one of, if not the most studied project in the County’s history and was reduced by over 50% based on community input, with the majority of it to be built on existing parking lots and other disturbed land.

In the meantime, the opposition is continuing to deprive our community of much-needed workforce housing, infrastructure improvements, and significant funding that will contribute to regional workforce housing initiatives, transportation, and tourism mitigation.

(Keep Tahoe Blue contributed to this report.)