North Tahoe Event Center Lease Terminated
At its December 12, 2017 Regular Board meeting, the Board of Directors of the North Tahoe Public Utility District voted to terminate the Lease Agreement with Laulima Kings Beach Event Center, LLC (LKBEC) for the operation and management of the North Tahoe Event Center, in Kings Beach, CA.
This Lease Agreement was approved by the Board of Directors at its September 18 Regular Board meeting and was executed by the parties effective October 5th. That approval also began various performance timelines, including a 60-day financial contingency period which ended on December 4, 2017. During this time period, LKBEC was required to submit various information to the District’s third-party consultant for review to ensure LKBEC’s financial and operational capability.
Unfortunately, LKBEC did not submit sufficient documentation to the District’s third-party financial consultant to satisfy the contingencies in the Lease Agreement and otherwise verify LKBEC’s operational and financial ability to fulfill the terms of the Lease Agreement. Given LKBEC’s inability to satisfy this contingency and consistent with the terms of the agreement, the Board voted to terminate the Lease Agreement.
The NTPUD will continue to operate the NTEC as it has in the recent past while investigating alternatives that reduce or eliminate its on-going operational deficit. For further information, please contact Mr. Duane Whitelaw, General Manager at 530.546.4212 or email@example.com.