The developer behind the stalled convention center near Stateline in South Lake Tahoe filed for Chapter 11 bankruptcy in Sacramento on Monday, according to Councilman Bill Crawford at Tuesday's council meeting.
Randy Lane and his company, Lake Tahoe Development Co. LLC, had presumably been scrambling to find financing to continue the $420 million project since Lane lost his funding in November 2007. Since that time, the empty parcel has been better known to locals as "the hole in the ground."
Lane was unable to be reached for comment. The phone for The Chateau at Heavenly, where Lane's company was listed under, was not being answered Tuesday during business hours, and was not allowing anyone to leave messages. Others who had worked closely with Lane, including a public relations firm representing the project, said they had heard similar news on Tuesday.
Last summer, the city council rejected a bond proposal that could have helped raise the money to get the development back on track out of fear the bonds may never be paid back. That would have left a huge debt on the city's bankbook.
The 11.53-acre site is located next to Harveys and across from Heavenly Village on the northwest corner of Highway 50 and Stateline Ave. and was planning to include a convention center, hotel-condominiums, undergrond parking and meeting facilities.
