SOUTH LAKE TAHOE, Calif. (AP) - The city council has rejected a proposal to issue $25 million worth of bonds to raise money for the developer of the stalled convention center project in South Lake Tahoe.
The unanimous vote by the council on Thursday means the developer of the state line project, Lake Tahoe Development Co., most likely will be forced into bankruptcy.
It also puts the plan for the convention center, hotel-condominiums and retail known as The Chateau at Heavenly Village in indefinite limbo.
"There is absolutely no way I can support this," said Mayor Jerry Birdwell, who called the bonds "junk bonds" and said the probability of them being repaid would be "slim to none."
Construction on the project stopped early last year after developers lost their financing. Already two or more notices of default have been filed by parties who are owed money by the developer.
Councilman Hal Cole made the motion to abandon consideration of issuing the bonds for the purpose of restructuring debt on the project. He said he was concerned that the developer hadn't presented a financial plan for finishing the project.
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