Public Land, Public Money, Public Trust: Not Yet for 39° North

Jun 13, 2025

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Patricia Orr

in Community

📌 Key Takeaways

The 39° North project is asking for public subsidies before completing CEQA, community benefit agreements, or financial disclosures.
NTEDIP requires clear public value and project readiness before incentives are awarded.
This would be the first NTEDIP-funded project—setting precedent for all future proposals.
Delaying the decision protects public trust, leverage, and resources.

Let’s take a closer look at what’s missing before public incentives should be allocated

Prior Design Concept (awaiting new design concepts to be published to https://www.39northlaketahoe.com)

At Strong North Tahoe, we advocate for thoughtful, community-informed development—especially when it involves public land and public resources. We support the revitalization of Kings Beach’s downtown core through redevelopment that delivers meaningful, lasting public benefit. Our goal is to help guide change that strengthens the local economy, respects community voice, and ensures long-term stewardship of Lake Tahoe.

For years, Placer County has told the public that the California Environmental Quality Act (CEQA) process is the proper time for community input on the 39° North project. So why is the developer continue to request millions in subsidies—before completing that very step?

The anticipated Kingsbarn request draws on a public incentive framework called the North Tahoe Economic Development Incentive Program (NTEDIP)—a taxpayer-backed tool created by Placer County in 2021 to reward readiness, not speculation. If CEQA is the right time for community review, and NTEDIP requires defined public benefit, shouldn’t the developer have to meet those same thresholds before receiving public funds?

NTEDIP was created to ensure public resources are used wisely, equitably, and with strong public return. Its guidelines are designed to protect public trust, ensure fair competition, and maximize the return on taxpayer-backed investment.

This blog unpacks what’s being requested, what’s still missing, and why delaying the public incentive decision may be the most responsible path forward.

What Incentives Are Being Requested?

On June 24, 2025, the Placer County Board of Supervisors is expected to consider a renewed request from Kingsbarn for public development incentives to support their 39° North project. The expected asks could include:

Tourist Accommodation Units (TAUs) — A revised ask approximately 25% below the original 146 is expected
A $2.14 million forgivable public loan — Later justified as reimbursement for years of internal County staff time
Up to $38.6 million in Transient Occupancy Tax (TOT) rebates — Spread over 20 years

Since entering into a non-competitive (no other bids) purchase agreement for this public land in 2018, Kingsbarn/Craig Clark has had more than six years to meet basic expectations of planning and transparency.

But under the standards set by NTEDIP—a program Placer County designed to protect public investments—this project still doesn’t qualify. Without CEQA progress, a signed Development Agreement, or a community engagement strategy, it remains a speculative proposal, not a ready one.

These are not private funds—they’re your tax dollars, your community land, and your shared infrastructure. The bar for public benefit must be clear, accountable, and met before a single dollar is committed.

When taxpayer-backed subsidies, discounted land, and free public parking lots are on the table, the public deserves to see the numbers: a clear pro forma, real return on taxpayer investments and inclusive community engagement that goes beyond information sessions to present architectural tweaks.

What Is the 39° North Project Proposing?

Kingsbarn’s 39° North proposal centers on 3.7 acres of public land across 16 County-owned parcels in the Kings Beach core. Key elements include:

Hotel + Retail: A 132-room hotel and limited leasable retail space
Condo-Hotel Townhomes: 38 for-sale units with 90-day annual owner caps
Workforce Housing: 63 deed-restricted units proposed on separate parcels, under a different purchase agreement — meaning these units are not directly tied to the main site’s community benefit obligations or timeline

Status: CEQA review has not begun. No final land sale has been executed. There is no public-facing analysis of project readiness, including site control, financing, construction schedule or community benefit.

This is one of the last major publicly owned redevelopment sites in the Kings Beach Town Center. Decisions made here will shape Tahoe’s economic and environmental path for decades.

Redevelopment should reinforce the town’s year-round economic vitality—yet this plan proposes to displace the majority of envisioned commercial leasable space with short-term tourism lodging. Earlier plans across both sites called for over 20,000 square feet of commercial activity to serve residents and visitors alike. That community-serving economic opportunity has been significantly reduced.

What Are TAUs and Condo-Hotels?

Tourist Accommodation Units (TAUs) are development credits required for new short-term lodging in the Tahoe Basin. They are a limited public resource, allocated by local governments like Placer County. Their use—especially on public land—should reflect long-term public value.

The 39° North plan includes 38 condo-hotel townhomes. Under the NTEDIP program guidelines, any project receiving incentives that includes condo-hotels must meet the following criteria:

Condo owners may not occupy their units for more than 90 days per year, with no more than 30 days in a single quarter
All units must be professionally managed and part of a centralized hotel rental pool
Individual units do not qualify as affordable or workforce housing and consume commercially zoned land with low-intensity use (not mixed-use).

These restrictions aim to ensure that condo-hotels function as visitor-serving accommodations—not second homes or de facto housing. While this model may be financially viable for developers, it prioritizes short-term tourism over year-round community benefit.

“Do condo-hotels meet real community needs—or just speculative tourism growth?” — Community Member, January 2024

What Is NTEDIP?

The North Tahoe Economic Development Incentive Program (NTEDIP) was adopted by Placer County in 2021 to guide public incentives for redevelopment in a way that reflects local priorities. The program offers TAUs, TOT rebates, and loans—but only to projects that demonstrate:

Readiness
Completion or progress on environmental review
Defined public benefit
Alignment with the Tahoe Basin Area Plan
Fair access to shared community resources

“Approval will be determined by the readiness of the applicant to submit a completed application that can be reviewed and presented to the Board.” — NTEDIP Guidelines, Section 5 (June 2021)

📌 39° North would be the first project to receive incentives under NTEDIP. That makes this decision especially important—it sets the standard for all future projects. If this is our first, it must also be our best: ready, transparent, and clearly aligned with community interest.

NTEDIP was built by Placer County to support accountable, community-aligned redevelopment—not to concentrate public resources in a single, unproven proposal.

⚖️ NTEDIP vs. 39° North: A Side-by-Side Look

Why These Standards Exist?

NTEDIP exists to ensure public resources are used wisely, equitably, and with strong public return. These criteria weren’t created to slow progress—they exist to ensure that when public land is developed, it strengthens our communities for the long haul. Meeting them isn’t a hurdle—it’s a baseline for trust.

NTEDIP Requirement	Program Intent	39° North Status (June 2025)
Community Engagement	Early, ongoing, and inclusive dialogue with residents	Two informational sessions only; no published community engagement plan or strategy
CEQA Completion	Environmental review must be completed before incentives are awarded	CEQA has not been initiated
Project Readiness	Must show clear site control, financing, and implementation timeline	Escrow has been open since 2018; no public-facing evidence of financing, construction plan, or financial guarantees
Development Agreement	Binding agreement outlining public benefits, timelines, and accountability terms	No Development Agreement in place; no enforceable community benefit commitments published to date
Public Land Use	Must maximize long-term public value when using County-owned land	Main site prioritized for short-term lodging; limited emphasis on community-serving uses
Equity in Access	NTEDIP tools should remain available to multiple developers over time	Previous request sought 100% of remaining TAUs and majority of available financial resources

📅 39° North Incentive Timeline: A Quick Recap

📆 April 2022 – Initial Application

153 TAUs to support a proposed 217-unit development (including 38 condos)
80% TOT rebate
Conversion of Commercial Floor Area (CFA) to help cover TAU needs

🔍 Context: Submitted before Kingsbarn acquired the public land, this early request set expectations for substantial public support.

💰 January 2024 – Rejected Incentive Application

146 TAUs (100% of the remaining NTEDIP bank)
A $2.14 million forgivable loan
Up to $38.6 million in TOT rebates

🚩 Financial context: Loan proposed as repayment for years of county staff time; The TOT rebate, worth up to $38.6 million over 20 years, would divert hotel tax revenue from core public services like snow removal, infrastructure, and workforce housing.

Why it was rejected: Placer County Supervisors cited:

No CEQA review
No signed Development Agreement
No documented community benefit
Disproportionate claim on public resources

“This project hasn’t gone through CEQA yet. How do we justify this level of financial commitment?” — Supervisor, Jan 2024

“Why subsidize luxury condos on public land while locals are priced out?” — Public Comment, Jan 2024

🔄 June 2025 – Anticipated Revised Application

Developer has indicated a request for ~25% fewer TAUs
Still seeking TOT rebates and potential loan support
The County may convert Commercial Floor Area to TAUs to satisfy the request—depleting a resource critical to small business and local economic growth

“We know the remaining TAU pool matters to the County and community—we’re asking for less this time.” — Kingsbarn, June 2025

Reducing the ask is a step—but it doesn’t resolve the deeper question: What is the community getting in return?

Tahoe’s public land and public investment tools aren’t just transactional—they represent generational commitments. The purpose of public subsidies isn’t just to move a project forward—it’s to ensure the project delivers meaningful community elements that wouldn’t otherwise be guaranteed.

🧩 Still Missing: NTEDIP’s Baselines Not Met

Despite reducing the ask, the revised application still falls short:

No signed Development Agreement
CEQA not started
No inclusive community engagement plan
No verified financing or implementation plan
No equitable access to limited TAUs

At the June 5, 2025 informational meeting, when asked about community benefit, Kingsbarn stated:

“We’re trying to be part of the solution.”
“Once we build this, other developers will follow.” — Kingsbarn, June 5, 2025

These vague assurances underscore what’s missing: a clear, accountable plan for public benefit.

Earlier versions of this project—from the 2016 RFI and 2017 Strategic Assessment—referenced a library, public plaza, civic spaces and more leasable commercial space. None of those community benefit features remain—yet the purchase price (under $3.1M) still reflects that vision.

Why Delay Makes Sense

This isn’t a vote against development or housing. It’s a vote for accountability.

If the public is expected to wait until CEQA for input, then developers seeking public subsidies must be held to the same threshold—complying with both CEQA and NTEDIP requirements before incentives are granted.

As the table above shows, the project does not meet NTEDIP’s basic standards. Delaying the incentives would:

✅ Safeguards precedent: This is the County’s first use of NTEDIP—setting a precedent for every future request. It must meet the highest standard.

✅ Preserves leverage: Incentives should not be awarded before key public benefits are secured.

✅ Promotes transparency: The process—and the project—must be clear and complete before public funds are committed.

Let’s ensure NTEDIP is used the way it was designed—transparently, fairly, and with lasting integrity.

Until the 39° North project completes environmental review, signs a binding agreement, and shows up for real community input, allocating (reserving or transferring) TAUs and subsidies removes leverage from the public and damages the public trust in government.

✅ What You Can Do

📨 Submit Public Comment
Email: [email protected]; [email protected]
Subject: “Public Comment – 39 North / June 24, 2025 Hearing”

🗓️ Attend the Hearing
When: June 24, 2025 at 9 AM
Where: 8318 N Lake Blvd, Kings Beach

📰 Final Thought

Strong Towns principles remind us: great places are built through incremental, financially sound, community-supported investment—not rushed commitments made before the fundamentals are in place. Let’s make sure our public programs with taxpayer dollars reflect that.

Placer County designed NTEDIP to support readiness, accountability, and transparency. Now it’s time to follow through on those values.

Let’s not rush to subsidize a project that hasn’t earned public trust. Let’s wait until the criteria we created are actually met.

That’s not saying no—it’s simply saying: “NOT YET”.

📃 Sources