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Palisades Tahoe Expansion Scaled Back in Settlement to End 14-Year Dispute

The deal reduces new bedrooms by 40%, eliminates the planned indoor waterpark, adds conservation easements, awaits Placer County Board approval.

A view of the base village at Palisades Tahoe in Olympic Valley, which will be expanded significantly under an approved development plan.
The Nevada Independent Logo
Under a settlement agreement made public July 8, 2025 between Palisades Tahoe, Sierra Watch and the League to Save Lake Tahoe, the ski resort will be permitted to construct 896 new hotel and condominium rooms, commercial space, and a recreation center featuring climbing walls, ziplines, and swimming pools in part of the resort’s main parking lot. (Courtesy of Palisades Tahoe)
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Overview

  • The July 8 settlement resolves nearly 14 years of litigation between Alterra Mountain Company and conservation groups, with final Placer County Board approval triggering the lawsuit’s dismissal.
  • Under the revised plan, new lodging is cut to just under 900 bedrooms, a 40% drop from the most recent proposal and about 60% from the original design.
  • Commercial square footage in the village core is reduced by 20%, and the previously planned indoor waterpark is replaced with a scaled-down mountain adventure center.
  • Sensitive parcels at the mouth of Shirley Canyon will be permanently protected under conservation easements, contributing to a projected 38% reduction in daily vehicle trips.
  • Alterra will build nearly 300 employee housing units and agree to no further development on the site for 25 years.