Now that Larry Ellison has bought the Hyatt Regency Lake Tahoe we now know why he has done next to nothing over the last few years at the Cal Neva. So what if anything do you see happening in the future at the Cal Neva?
We rang up Ellison’s Lawrence Investments firm, but got a fax-machine signal for our troubles.
Ellison has owned the Cal Neva since 2018, when he bought it out of bankruptcy, and has not been inactive. Shortly after purchasing it, he proceeded with the removal of a baker’s dozen of cabins on the Nevada side of the property.
According to the Cal Neva’s official web site, Ellison’s contractors “worked closely with fire officials, forestry, landscape and wildlife experts to implement the environmental protection measures. Certain areas of this project remain fenced in to protect the delicate re-seeded areas of the [Tahoe Regional Planning Agency] approved USDA certified noxious weed free seed mix.” The goal of the cabin-decimation was to create a natural fire break and to improve the overall fire safety of the area.
That same month, the Cal Neva team completed a Cultural Resources Study, for review by both Nevada and California historical-preservation agencies. “Upon approval … The Cal Neva project redevelopment team plans to move forward with the preservation recommendations as well as with additional efforts, above and beyond the Study recommendations, to explore local heritage partnerships.” The stated goal of preservation would seem to be at odds with other reported Ellison-planned changes to the Cal Neva. These would include demolition of the casino floor and of the historic pool that straddles the state line between the Silver State and the Golden State.
Ominously, several structures at the Cal Neva were determined to be “either lacking in integrity or do not meet the age criteria or are also in a deteriorated condition.” These included cabins once used by Frank Sinatra and Marilyn Monroe: “although two of the cabins were occupied by Sinatra and Monroe at various times, there are many other places more closely associated with them throughout the United States … [They] are completely lacking in integrity to their period of significance.”
The existing lodge and casino were deemed to be “deteriorating,” to be replaced with a new, two-story structure at the foot of the current hotel tower “to unify, restore and integrate the hotel, restaurants, casino, conference center, spa, and support facilities to bring a vibrant experience back similar to previous uses.” All that will otherwise be left of the old Cal-Neva will be “detailed photo documentation and a historic booklet to be donated to various museums and historical societies,” plus a few artifacts donated to local historical societies. These may include the resort’s murals and the stones from its grand fireplace.
The study didn’t blame Ellison for the condition of the resort. “It is important,” it read, “to note that when the property was acquired through bankruptcy earlier this year, [2018] many aspects within had either been stripped out or damaged in the course of the prior owner’s work or the ensuing three year period of abandonment and court proceedings.” So some blame attaches to Ellison’s predecessor, the Criswell Radovan company.
The Cal-Neva’s gaming license was renewed in April 2019, a positive sign and an unspecified “deteriorating structure” was demolished the following July. A new heating plant was installed in the hotel tower in early 2020 and, throughout the pandemic year, site-remediation work continued, including revegetation of the area. By September, this had moved on to the removal of dead trees and “general debris.” Revegetation was continuing as of May of this year, which is where the narrative sputters out.
The web site warns, though, that “ownership is reassessing the Cal Neva development. Planning on the project is currently paused.”
That doesn’t sound good. We hope Ellison doesn’t abandon his erstwhile dream project half-finished.
However, having just sunk $345 million into the Hyatt Regency Lake Tahoe Resort, Spa & Casino in Incline Village, we do fear he’s taken his eye off the Cal Neva ball. After all, it’s an active property that will immediately generate cash flow and management assures the media, “Hyatt will continue to manage Hyatt Regency Lake Tahoe under the Hyatt Regency brand under a long-term management agreement, and there will be no business disruption with this transfer of ownership at this time.”
Poor Cal Neva. All torn up and no place to go.
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Kevin Lewis
Dec-04-2021
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