Residents given weeks to move as building will soon be demolished

Residents of a 38-unit apartment building at Stateline were told last week that they must move by the end of March.

"The landlord said maybe it would be two years," said Eugene Roberts, 43, who began renting a Lake Park Apartment on Kahle Drive with his fiancee last July. "We expected a little time. We're living paycheck to paycheck anyway so it's going to be hard trying to come up with a lump sum of money" for a security deposit.

Lake Park residents have lived in limbo since Falcon Capital, a Round Hill development company, bought the property and its five buildings in 2000. Since then, three of the five buildings have been demolished, and two are expected to be torn down this spring and late summer.

Lake Park No. 1, where Roberts lives, will be gone by April to make way for a 30-unit affordable housing project called Meadowbrook. Lake Park No. 3 will likely be demolished by late August, said Kevin Lane, Falcon project manager.

Apartment No. 3 will make way for a $1 million water-treatment system to be installed by Douglas County. The environmental improvement work was required by the Tahoe Regional Planning Agency.

Because of the uncertain living conditions, tenants at the complex prior to 2000 got some financial breaks, but other tenants who moved in knowing the wrecking ball was on its way are being asked to pay March rent then be out 31 days later.

Lane said the challenges that come with development in the Lake Tahoe Basin do not allow Falcon to set demolition dates farther in advance.

But, he said, Falcon will try to get deposits back to tenants in a shorter time than the 30 days they are allowed by law, and that it will delay the destruction of Lake Park No. 3 as long as it can to avoid flooding the housing market.

"We'll delay it, probably after summer, if possible," Lane said. "It will disperse less people into the community at once. We don't want to put anybody out in street."

Falcon is in the process of removing housing for lower-income families, but is also required by the Tahoe Regional Planning Authority to replace what it removes. In January 2002, Falcon opened the 64-unit Lake Vista complex on Kingsbury Grade, which is operating at capacity.

"It's running very well," Lane said. "It took a while to fill up because the paperwork is intensive, but once we got it all filled, it's been wonderful."

Lane said people displaced from Lake Park who are eligible for affordable housing will be considered for Meadowbrook. Lake Vista has a long waiting list, and families on it will be given priority if they are eligible to live in Meadowbrook, according to Lew Feldman, an attorney who represents Falcon.

Meadowbrook will consist of 18-three bedroom and 14-two bedroom units. It is expected to cost $4.5 million to build and could be open by spring 2004.

To compensate for the razing of Lake Park, TRPA is requiring Falcon to replace the lower-income housing with 134 units of affordable housing in Douglas County or the city of South Lake Tahoe.

Meadowbrook, combined with Lake Vista, still leaves Falcon down 40 affordable-housing units. Falcon, representing a group of landowners from Incline Village, is considering 18 acres near Burke Creek as a possible site for more affordable housing.

When the demolition of Lake Park began in 2000, the effects were apparent, according to Rick Kester, director of business services for the Douglas County School District.

For example, before Falcon bought the complex, the district had 140 students who lived in the complex and attended the three Douglas County schools at the lake. Over the past two years, with the subsequent demolition of three buildings and other factors such as the weakened economy, 104 students have left the district.

-- Jeff Munson and William Ferchland contributed to this report.