There is a movement to incorporate Olympic Valley, which is a popular skiing and vacation destination located near Lake Tahoe. Olympic Valley has always been an unincorporated area and this has worked well for the region as it has a small population and is primarily a tourist destination. The Placer County Local Agency Foundation Commission conducted a fiscal analysis that concluded that since Olympic Valley has fewer than 1000 residents that live there full time, the area would not be able to support itself if it incorporated. This poses the question, where would the city’s main revenue source come from to make incorporation feasible with so few residents? According to the report, Olympic Valley’s main revenue source would be the transient occupancy tax on hotel guests. This transient occupancy tax would not be enough to create the necessary amount of yearly revenue to fund city operations.
Why is the incorporation of Olympic Valley even being considered? Some residents there started wanting incorporation a few years back when development was proposed for 30,000 square feet of new commercial space as well as new space for 850 rooms for hotels and condos. The residents who were for incorporating thought that in making Olympic Valley a city, they would have more say in this and similar development proposals. However, based on incorporation not benefiting the economic situation in Olympic Valley including businesses like hotels, incorporation really seems not to be something beneficial either to people living there or to developers in the area. Andy Wirth, the president and CEO of Squaw Valley Ski Holdings LLC which is pro-development in the area and a member of Save Our Valley (a group that is opposed to incorporation) said, “The independent study confirms the prevailing wisdom, that creating a town of 500 people, based on one revenue source and dependent on tourism and weather conditions, doesn’t make sense.” Read more about the effects of Incorporation Olympic Valley here.