What is Special Area 1?

Special Area 1 of the Incline Village Commercial Regulatory Zone, is a Town Center where dense urban redevelopment is encouraged.

Why is an amendment needed to the Tahoe Area Plan for this project located in Special Area 1?

The amendment is simply rent or own and the project is already approved for 40-multifamily units for rent. The development code amendment would allow for the form of condominium ownership.

Special Area 1 is a Town Center and for more than 20 years, it has not attracted significant investment or re-investment. To implement the goals of the TRPA to incentivize redevelopment in town centers, Special Area No. 1 needs updated zoning to include the ownership form of SFDs, or condominiums. The Incline Village Commercial Community Plan was adopted in 1996 and the Tahoe Area Plan in 2021, which carried over the SFD dwelling policies from the 25-year-old Community Plan. Both Plans contain provisions allowing for amendment if goals have not been achieved. The goals have not been achieved. The amendment removes a barrier to implementation of these goals and improves the community’s ability to achieve economic infusion and environmental benefits plus address the housing shortage. 

The Area Plan Policy directs the County to identify barriers to redevelopment within Town Centers and states that amendments to the Area Plan should be pursued to remove barriers or otherwise facilitate redevelopment in these areas. It is evident existing zoning has not incentivized redevelopment in this area. The proposed amendment will be a catalyst to inspire long overdue investment, reinvestment, and redevelopment within Special Area 1 to implement the Area Plan. The only difference between MFD and SFD is form of ownership.

Benefits of Amendment

• Fulfill Area Plan vision via increased density in the Town Center
• Increase housing opportunities by adding additional residential use 
• Promote walkability/biking and reduce dependence on the automobile
• Reduce trip generation, VMT and parking demand
• Upgrade storm water management controls

What is approved now for the developer Pal Cap at Special Area 1?

The project is already approved for a MFD project (multiple-family dwelling, which means several units are located on a single parcel such as townhome/apartments). A second approval is needed for a SFD project (single family dwelling, which means one residential unit per approved apartment). It was discovered by the project team, Washoe County and TRPA late in the process that the SFD ownership was not permissible on the properties at Special Area 1, which is an outdated use restriction considering it is an urban area/Town Center. It was learned by all parties that SFD condos are allowed in other town center designated areas throughout the basin, but not in Special Area 1 and this requires a zoning amendment. This amendment would permit condos but not single-family homes or McMansions.

The Tahoe Area Plan clearly states on page 2-1 that environmental redevelopment provides the best path to sustainable development by directing the remaining development capacity in the Region into areas with existing development and infrastructure, promoting economic activity, replacing sub-standard development with more energy-efficient and environmentally friendly structures, and creating more compact walkable and bikeable Town Centers. (Tahoe Area Plan page 2-1)

Why did the Washoe County staff researchers and Planning Commission recommend and support the development code amendment?

Washoe County staff researchers recently reported and recommended for approval based on the ability to make all the following findings in accordance with Washoe County Code Section 110.818.15(e). The amendment…

• is consistent with and substantially compliant with the policies and action programs of the Washoe County Master Plan.
• does not conflict with the policies and action programs of the Master Plan and it is compatible with the New Tahoe Area Plan. Per Chapter 2 of the Tahoe Area Plan, redevelopment offers the best path to sustainable development by directing the remaining development capacity in the Region into areas with existing development and infrastructure, promoting economic activity, replacing substandard development with more energy efficient and environmentally friendly structures, and creating more compact walkable and bikeable Town Centers. 
• would allow single family dwellings, limited to air space condominiums in Incline Village Commercial Special Area 1, a Town Center, provides additional housing options consistently with many goals and policies identified in the Tahoe Area Plan, including the creation of walkable Town Centers. 
• promotes the purpose of the development Code. The proposed development code amendment will not adversely impact the public health, safety, or welfare, and will promote the original purposes for the development code as expressed in Article 918, Adoption of Development Code. 
• encourages more diverse use types within town centers by allowing the division of multifamily dwellings for individual ownership, i.e., single family dwellings, as air space condominiums, as an additional option for development. 
• responds to changed conditions or further studies that have occurred since the Development Code was adopted by the Board of County Commissioners, and the requested amendment allows for a more desirable utilization of land within the regulatory zones.
• will not adversely affect the implementation of the policies and action programs of the Conservation Element or the Population Element of the Washoe County Master Plan.
• will not remove multifamily dwellings as a permissible use in Special Area 1 of the IV-C regulatory zone. Rather, it adds single- family dwellings, as condominiums, as an additional housing option. The amendment does not impact the maximum density allowed. 

The Tahoe Area Plan, adopted in 2021, and the Washoe Tahoe Local Employee Housing Needs and Opportunities study, completed in September 2021, both identify the need to diversify and provide support for varying housing options, specifically in town centers. The subject DCA accomplishes this by affording property owners in Incline Village Commercial- Special Area 1 regulatory zone the option to include single-family dwellings, as air space condominiums, in future development projects. In addition, Policy LU7-1 of the Area Plan directs the County to identify barriers to redevelopment within town centers and states that amendments to the Area Plan should be pursued to remove barriers or otherwise facilitate redevelopment in these areas. Limited housing has been developed in Special Area 1 despite the stated goal to create walkable communities where people live, work and play. The amendment will incentivize high density residential redevelopment in the Town Center by increasing opportunities for economically viable projects.

Why can’t an exception be made for just these parcels for Nine47Tahoe vs. doing an amendment that might lead to residential condos vs. commercial building at Tahoe? In other words, does this project give a green light to residential condos instead of commercial buildings in this area of Incline Village? 

The amendment is to allow for the condominium form of ownership. The project has already been approved for 40 MFDs (multiple family dwelling units) for rent. The county suggested the amendment for all of Special Area 1 to avoid patch work zoning. The special area specifically excluded SFD, however, it was not entirely clear that condos were deemed SFDs (single family dwelling units) for ownership. In promoting the goals of walkability within a central township, this zoning is appropriate. Considering the lack of overall progress in the last 25 years, it is a clear sign that what has existed here wasn’t working. There is limited land available for residential condominium development. There are 42 parcels in Special Area 1, seven of which are vacant parcels: one Forest Service, one Washoe County, three Fleisher Land LLC and two Palcap (approved for 40-unit project). Commercial condominiums are already permissible in Special Area 1. The amendment will have no impact on this.

Why is the Nine47Tahoe project more narrowly defined and interpreted as not part of the bigger commercial center, Southwood/Northwood Corridor where the 3^rd Creek condominiums are located?

The special area map was drawn by the 1996 Community Plan team and was not revisited when the 2021 Tahoe Area Plan was adopted—it should have been. The 3rd Creek condominiums are not within Special Area 1. Nine47Tahoe had no say in the mapping. This area has specific incentives around density, CFA requirements and other criteria that promote density vs areas outside this area. Incentives were provided to promote this type of project.  

Living Units

Why can’t this site be used to build affordable housing?

As locals, the project team is mindful of the under supply of affordable housing and housing at all levels in Incline Village. In fact, this developer is planning an affordable housing partnership project at another location in Incline Village. 

For this location at Special Area 1, the project team has studied the site to maximize its use, which included affordable or work force housing. Certain parcels of land are suitable for different development. Due to the expensive cost of land, labor and construction at this site, the size of the lot and location makes this site suitable for apartments or condos. The development of affordable or workforce housing is not financially feasible at this location and our project should not be penalized for not doing this type of housing. In consultation with Washoe County, we are working on another property location to bring forward workforce housing to Incline Village. 

Affordable housing is not economically viable on this main thoroughfare Special Area 1. The Tahoe Area Plan allows for amendments to remove barriers for redevelopment and currently there is no incentive for the higher density projects.

The owners of 947 see affordable housing as a key issue that requires a private/public partnership to solve. The owners retained Praxis consulting, one of the leading tax credit financing advisors in Nevada experienced in helping projects apply for tax credit financing that make affordable housing viable. To secure these projects, one must compete with other opportunities around the State for these funds and must be competitive in order to receive them. The Incline Village area is inherently disadvantaged due to high land costs, higher building costs, and shorter building season. That’s not to say it can’t happen, but it will require significant funding gap coverage from the County or other organizations to make it competitive for those tax credit funding dollars. The owners analyzed the last 7 Washoe county affordable projects summarized below.