Business & Real Estate

South Lake Tahoe moves to replace old motel with Whole Foods

The sale of city owned property to make way for a Whole Foods store and retail center, as well as a creek restoration project in South Lake Tahoe has received City Council approval.

The council, during a special meeting Tuesday agreed to sell portions of parcels around the Knights Inn for $2 million to Halferty Development LLC. The property will be combined and developed jointly with a parcel the firm is purchasing at the corner of Ski Run Boulevard and Highway 50, according to a city news release. That property is in escrow for $1.1 million.

The redevelopment effort, known as the Bijou Creek Watershed Project, will result in demolition of 110 old hotel rooms in the city’s tourist-core area. The site will be redeveloped with 43,000 square feet of retail and restaurant space, including a Whole Foods store, as well as parking, pedestrian pathways, and features that encourage walking, biking an alternative modes of transportation, according to the project website.

The storm-water and creek restoration part of the project will include removing a failing storm drain pipe beneath the Knights Inn building, creating a new storm-water treatment system and restoring a portion of Bijou Park Creek.

The city Planning Commission is scheduled Thursday to to consider the proposed development and design, as well as a special use permit and the environmental study for the project. The meeting will begin at 3 p.m. in the City Council Chambers, 1901 Airport Road, South Lake Tahoe.

Cathy Locke: 916-321-5287, @lockecathy