The Tahoe Douglas Visitors Authority (TDVA) hired a consulting agency to conduct a study on the possible benefits of a six-thousand-seat event center at the corner of Highway 50 and Lake Parkway.
The event center would sit on top of the current Montbleu parking lot, and would include convention floor space for more than 150 booths and several meeting rooms and suites.
The TDVA presented a preliminary summary of their study to the Douglas County Board of Commissioners Thursday, where things got heated between commissioners.
"We think the opportunity for tax improvement between $75 million and $90 million, $92 million over 12 years," President of SMG Carl Ribaudo, who presented the study to the commissioners Thursday, says. "We think revenues have the ability to grow between 1.5 ad 1.2 billion. We think job growth is around 1,100 to 1,300 jobs."
Ribaudo says between 2001 and 2018, gaming revenues went down 35 to 40 percent. In a similar time frame, he says casino-resorts reduced their employees by 50 percent.
He says there are two main reasons for the decline in gaming, and subsequently a decline in lodging.
"Challenges presented by both the economic recession in 2008," Ribaudo says. "But more long-term, tribal gaming in northern California."
Ribaudo says there's nothing like this event center in the Stateline/South Lake Tahoe area. As far as capacity, only the Outdoor Arena at Harvey's compares, holding eight thousand people. But officials from TDVA say the outdoor arena only has about twelve events a year, and they expect about 130 events a year at the event center.
He believes this diversifies the economy while strengthening went South Shore does best.
"It really is a way to change the dynamic up here," Ribaudo says. "And make the casino industry and the destination, more viable and more competitive in the ruthless industry which is tourism."
During Thursday's meeting, Commissioner John Engels argued convention centers and events centers are often under-utilized, citing example in San Jose and Colorado. He says the taxpayers could pay the price if it doesn't produce enough revenue.
The Board of Commissioners will hear the full report next month.
The TDVA is also seeking approval from the Tahoe Regional Planning Agency, and they're currently putting together an environmental impact study.
Also, Senate Bill 461 would add a surcharge of five dollars to all rooms. Officials we spoke with support the bill, saying it would add more money to cover the cost of the event center than any other source.
