Incline Village to be inundated?
Author: Mike Abel, Incline Village resident
The IVGID Board is soon to take up an issue that may dramatically affect the value of your Incline property.
Few if any Incline residents have ever heard of “Ordinance 7”. Ordinance 7 is the Incline specific regulations which control recreational access and especially access to our private beaches. You only need to drive by Sand Harbor on a summer weekend to know that the private restricted access beaches in Incline Village are a really special asset. You also may not know that Washoe County of which Incline Village is an unincorporated subdivision enacted a law allowing unrestricted licensing of short-term-vacation-rentals (STRs) in Incline Village and Crystal Bay. At present there are 1000 STR licenses in Incline Village. Our Village is presently the only place in the Tahoe basin that lacks a numeric restriction on STRs. Just ask yourself: Why would anyone rent a STR in Incline Village during the core summer season if that rental did not include beach access?
It was estimated about 10 years ago that the value of the private beaches to Incline Village homeowners was about $50,000. Today it is not unreasonable to set the value at $100K-$250K. A little history first:
- In and before 1961 home sites were sold in Incline Village. The developer wanted to unload debt obligations for water, sewer development so IVGID was set up to manage and develop water and sewer assets. Washoe County managed that funding through ad valorum (property) taxes.
- In 1968 IVGID, which at that time was essentially managed by the developer, purchased the beaches from the developer for $2.1 million and imposed a “rec” fee of $50 per parcel on the homeowners to pay down the lender on the beach debt.
- The deed to the beaches is an unusual in that it also includes a contract with IVGID to manage the asset.
- The deed to the beaches contains a restriction that limits access to the beaches to the “District” (Incline Village) as it was constituted at the time of the purchase.
- The deed also includes legalese language that says: “that the real property above described (beaches), and any and all improvements now and hereafter located thereon, shall be held, maintained and used by grantee it successors and assigns, only for purposes of recreation by and for the benefit of property owners and their tenants…..within the district. And…as the (IVGID Board) may determine the guests of such property owners……”
- The deed also grants IVGID an easement for the “operation of the water pumping facilities (at Burnt Cedar Beach)”
- No other rights were granted to IVGID in the original Beach deed.
Over the years, IVGID Trustees and GM’s have changed and revised what were formerly quite restrictive access rules for the beaches. When Incline was a sleepy mountain community in the 1980-2010 the easing of these restrictions had little impact. However, in recent years the beaches have become over run with visitors especially on holiday weekends. Beach crowding and access is now a big issue and affects the quality of the homeowner’s (read owner/taxpayers) usage.
In early 2021 IVGID sent out a not-so-great survey to elicit IVGID citizen’s feelings about recreational venue access, ID cards and “punch cards”. The IVGID General Manager Winquest organized a committee to evaluate Beach access and bring suggestions to the Board of Trustees. The persons appointed to the committee were dominated by real estate (read STR) interests and persons that felt that IVGID was acting in good faith enforcing our beach rights. The Board also hired a lawyer to issue a legal opinion on beach access and guest usage. On April 13th 2022 the committee took the suggestions and report of the committee majority to the Board of Trustees.
Some of the suggestions made to the Board were quite ok and/or do not materially affect your property value. Other important components of owner’s beach usage were either ignored or addressed poorly. Three Key points:
- Presently each homeowner is granted a combination of 5 picture passes and/or punch cards. Presently each homeowner may purchase an additional 5 punch cards at approximately $156/each. In the survey that IVGID sent out, 67% of respondents (1140) wanted additional punch card purchases limited to 3 or less. Despite the overwhelming desire of respondents to limit the number of additional punch card purchases to three (3) or less, the committee report recommended that homeowners be able to purchase up to 5 additional passes.
- IVGID has given their employees and retired employees cards (called gold and silver cards) that they can use for unlimited beach access for themselves and their families. The pro-STR real estate majority on the committee dodged this super important issue failing to address it. It is my contention that the committee did not want a confrontation with GM Winquest on this issue. It is also my contention that the failure of the hired attorney to address this issue is because he was asked by the GM to NOT address it as a way to give cover to his employees and their beach access privileges.
- Commercial activity: This is primarily with respect to boat access to the boat ramp at Ski Beach. Currently several commercial outfits operate for profit boat business in town. They launch, retrieve and store boats for their owners in Incline Village. The special counsel attorney engaged by the Board seems to have addressed this issue. These companies basically do a good and very safe job launching and retrieving boats at Ski Beach. There is reasonable suspicion that they are selling beach access to non-pass-holders. This should not be permitted. Otherwise, I support their use of the launch facility for owners.
Concerns and issues
Too many punch cards – The big gorilla on the block is STR beach privileges.
If home or condo owners can buy 5 EXTRA punch cards – that converts as follows. Since beach access is about $15 and the punch cards cost $154. That converts to 10 visits per card purchased. If there are 1000 STRs in Incline Village and each one purchases 5 extra cards– that converts to 50,000 potential beach visits.
(10 visits per card x 5 cards = 50 visits per unit x 1000 units = 50,000 potential beach visits)
Now, we do not believe that there will be 50,000 extra beach visitors to our private beaches in 2022 nor in 2023. But, if the IVGID Board approves the issuance of five (5) extra punch cards per parcel this year, I predict: a) our beaches will eventually suffer severe over-crowding from parcel owners who rent out their units as STRs and, b) that a brisk grey resale market will develop in “punch cards”.
Employee Usage
I feel that this is a key issue. Per the original beach deed, IVGID is to act as a fiduciary, rather than an owner who can dispense beach privileges “at will” to employees and retirees with the sole exception that IVGID has the right to define “guest” rights.
IVGID Management giving out beach access
The committee majority, the IVGID GM and the hired gun attorney have dodged this issue. IVGID management has skirted addressing this issue like it is the bubonic plague. Per beach deed paragraphs 5,6 and 7, IVGID has no right to dispense beach access to their employees or retirees. Most IVGID employees and retirees do not live in town nor does the GM whose primary interaction and apparent loyalty is to his staff. We believe that this is a core issue of contention and is a violation of the deed. Like the camel’s nose in the tent, who is to say that access should not be granted to Washoe County employees and their families or with UNR taking over the college to access for employees and UNR students. This breach must be stopped.
Solutions
If you see the problems here speak out and write your feelings to the IVGID Trustees. Their email addresses as follows:
Wong_Trustee@IVGID.org
Go to the Ordinance 7 hearing on May 26th at 6:00 at the Chateau and speak your mind.
If this fails, our property owners must seek relief through the courts. Let us hope that this is not necessary.