CA Pier and Buoy Rent Update

August 14, 2018

TLOA Supports California State Lands Commission (CSLC) Action to Authorize Funds for Rent Review

Since February, TLOA has been awaiting this action by the Commission in order to proceed with a study to ensure a fair and reasonable method is used to establish annual pier and buoy rent at Lake Tahoe. TLOA believes the work we completed in coordination with CSLC staff over the past year and presented to the Commission remains the best method. Once the study is completed, TLOA will be anxious to review the consultant’s report which is likely to be released sometime in 2019. For now, we feel this is positive progress for California pier and buoy owners. On behalf of all California lakefront owners, TLOA has submitted written support to CSLC to authorize funding for the rent review at its August 23rd meeting.

March 1, 2018

CSLC Rent Reduction Deferred
Current Rates Remain in Effect

While CSLC staff recommended a significant reduction in California pier and buoy rental rates as negotiated with TLOA at the CSLC February 27th meeting, the CSLC commissioners decided to defer action on the proposed lease rates until such time as an independent consultant can be retained to conduct a thorough review of the Benchmark system. While this process has been deferred for more analysis, the CSLC staff and TLOA have already been in contact to see how we can move forward right away, so that time and available information are not wasted.

For now, the commission has agreed to keep the rates the same for piers and buoys until new rates have been approved. That is good news, since the CSLC staff had originally proposed an increase to $1.01/sf for piers and $516 per buoy.

Please see the side bar for the current rental rates and proposed rate reductions that were negotiated with TLOA. Every five years CSLC analyzes rental rates for pier and buoys. In 2017, CSLC staff proposed an approximate 35% increase over 2012 rates. Thanks to all of you who provided comments of support for the proposed rate reductions. CSLC received over 160 comments of support.

Click here for the current benchmark rates:https://www.slc.ca.gov/leases-permits/benchmarks/

Click here to read the CSLC staff February 27th Lake Tahoe Benchmark recommendation.

Click here to view the January 18 CSLC Lake Tahoe Benchmark presentation.

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Lake Tahoe Benchmark Rental Rates

Following are the current CSLC rental rates established in 2012, initial 2017 increases proposed by CSLC staff, and the newly proposed CSLC staff 2018 rate reductions negotiated with TLOA:

Category 1: Piers and Buoys

Piers

Currently $0.79/sq ft
2017 Initial CSLC Proposed Rates $1.01/sq ft
2018 Proposed Rate $0.42/sq

Buoys

Currently $377/year
2017 Initial CSLC Proposed Rates $516/year
2018 Proposed Rate $194/year

Category 2: Non-water dependent use areas such as sundecks and fills

Discounted Rate (Includes Sundecks)

2017 Initial CSLC Proposed Rates $2.70/sq ft
2018 Proposed Rate $1.13/sq ft

Undiscounted Rate (Includes fill area below the low water mark)

Initial CSLC Proposed Rates $10.80/sq ft
2018 Proposed Rate $10.80/square foot (no change)

CA Pier and Buoy Rent Update

TLOA Supports California State Lands Commission (CSLC) Action to Authorize Funds for Rent Review

CSLC Rent Reduction DeferredCurrent Rates Remain in Effect

CSLC Rent Reduction Deferred
Current Rates Remain in Effect