As elsewhere discussed, IVGID purchased the beaches from Crystal Bay Development Co.’s (“CBDC’s”) successor (Village Development Co., Inc.) on June 4, 1968. According to the express language in the beach deed, beach access was granted to the occupants of each room in a hotel/motel within the District’s then boundaries. For this very reason, when the then IVGID Board adopted Resolution No. 419 (which created what has become today’s RFF), it expressly assessed each room in a hotel/motel capable of occupancy (i.e., a guestroom) a separate RFF. But that all changed in 1982.

According to Resolution No. 1397 adopted May 15, 1981, the Hyatt Lake Tahoe Hotel (“Hyatt”) had 412 guestrooms for occupancy at the time¹. Thus in accordance with Resolution No. 419, the Hyatt was assessed 412 RFFs at $97.50/each² for a total annual RFF of $40,170³. Understandably, the Hyatt’s General Manager at the time, Jack Hardy, wasn’t keen about paying this much to IVGID, especially given the fact the hotel had/has its own Lake Tahoe beach/access. The minutes of the Board’s January 22, 1982 meeting reveal that it held a discussion, in part, to consider reducing the RFF assessed against each such room. Mr. Hardy told the Board that the Hyatt “either want(ed) to be taken off the recreation roll completely, or (to) receive three picture passes⁴ per (assessed guest)room.” Apparently Mr. Hardy’s lobbying efforts with the District’s Recreation Director at the time, Doug Doolittle, was successful because the minutes of the Board’s February 24, 1982 meeting reveal that Mr. Doolittle introduced a formal “proposal…to eliminate the per-room charge to hotels and motels and (to) assess them on a per-parcel basis.” And the very next day the minutes of the Board’s February 25, 1982 meeting reveal that the Board adopted a formal resolution supporting Mr. Doolittle’s proposal thus changing the way hotels/motels were charged RFFs. Based upon Mr. Doolittle’s recommendation and the Hyatt’s attorney’s (Gino Menchetti’s) representation it was allegedly “willing to have its guests treated as guests (rather than)…property owners, and (thus) pay…full rates for use of District facilities,” the then Board by a 3-to-2 vote adopted a resolution whereby, in part, “hotel(s) and motel(s would henceforth) be charged the same (RFF) as commercial (parcels) on a per-parcel (rather than per guestroom) basis.” Accordingly on April 15, 1982 the Board adopted Resolution No. 1424 [pursuant to NRS 318.201(8)] which incorporated a Final Report for the collection of the 1981-82 RFF on the County tax roll. ¶III(F) of that resolution assessed each hotel/motel parcel a single RFF as a “commercial parcel zoned TC or GC.” And this is the way local hotels/motels are currently assessed the BFF and/or RFF today.

Notwithstanding Mr. Menchetti’s representations, today the occupants of local hotel/motel guestrooms are afforded all sorts of recreation privileges/special pricing not offered to non-parcel owners. For instance, Hyatt guests are able to access and use IVGID’s beaches under the guise they are the “guests” of a parcel owner (i.e., the Hyatt) who pays the BFF. There is a special discounted “Hyatt rate” at both of the District’s golf courses⁵. And similarly, there is a special discounted lift ticket rate for Hyatt guests at Diamond Peak⁶. So much for “pay(ing) the full rates for use of District facilities” Mr. Menchetti!

Given the occupants of hotel/motel guestrooms place far more demand on the District’s beach and recreation facilities, compared to the occupants of any other local parcel assessed a single RFF/BFF, and hotels/motels are benefited so much more because of the “availability” to access and use those facilities, many local parcel/dwelling unit owners have asked why hotels/motels are only assessed a single RFF/BFF? And now you know the reasons.

So is there anything which prohibits the current or future IVGID Boards from returning to the RFF assessment practices of the past⁷? The answer is a resounding “no.” In fact, many parcel owners argue that’s exactly what should take place given per hotel/motel guestroom assessment was the consideration given in exchange for beach access in the beach deed. In other words, if each hotel/motel guestroom is not assessed a separate RFF/BFF, their occupants should not be entitled to recreation user fee discounts nor beach access.

1. Today the Hyatt offers 422 guestrooms (for occupancy) and in addition, 24 lakeside cottages.
2. The RFF for residential parcels at the time was $195.00. For whatever reasons, the then Board chose to assess hotel/motel guestrooms half the residential parcel RFF rate.
3. Worth a whopping $121,375.72 in today’s dollars.
4. At the time, each parcel/dwelling unit/hotel or motel room assessed the RFF was entitled to claim up to a maximum of three (3)picture passes.
5. See page 017 of the packet of materials prepared by staff in anticipation of the Board’s April 14, 2021 meeting [“the 4/14/2021 Board packet” (https://www.yourtahoeplace.com/uploads/pdf-ivgid/0414_-Regular–Searchable.pdf).
6. In fact for years the District extended $10 lift tickets to Hyatt employees under a so called “service industry” discount.”
7. In other words, assessing each guestroom in a hotel/motel a separate RFF/BFF.