FEIS - Tahoe Regional Planning Agency
FEIS - Tahoe Regional Planning Agency
FEIS - Tahoe Regional Planning Agency
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RESPONSE TO COMMENTS ON THE DEIS<br />
B o u l d e r B a y C o m m u n i t y E n h a n c e m e n t P r o g r a m P r o j e c t E I S<br />
Based upon an evaluation of inflation adjusted Nevada Gaming Control Board<br />
(NGCB) reported annual revenues for the North Lake <strong>Tahoe</strong> (NLT) Market, the peak<br />
revenue year was 2000. This is consistent with NDOT and CALTRANS Average<br />
Annual Daily Trip (AADT) reports that show peak traffic volumes for the SR 28<br />
corridor between 2000 and 2002.<br />
This analysis in Table 8.5-5 demonstrates that, between 2000 and 2007, the NLT<br />
market declined by approximately 19% or about 2.4% per year over 8 years. In<br />
2008, the market declined by 22%, or over nine times the average rate of decline<br />
during normal economic conditions including the expansion of Tribal gaming.<br />
Between 2000-2008 a number of casinos were opened in California and across the<br />
country including Thunder Valley and the $200 million resort at Cache Creek, and<br />
are reflected in this 2.4% average annual decline. There is no evidence to suggest<br />
that between 2007 and 2008 the decline due solely to competition from Tribal<br />
gaming would increase from an average of 2.4%/year to over 22% in one year<br />
particularly given that no new casinos were opened during 2008 until December 17,<br />
2008. This acceleration in decline suggests that there were temporary impacts such as<br />
the recession and gasoline prices as well as a permanent decline due to Tribal<br />
gaming.<br />
Table 8.5-5<br />
Evaluation of Nevada Gaming Control Board Reported Revenues 2000-2009<br />
Year Inflation North Lake <strong>Tahoe</strong><br />
Gamin Revenues (1999 $)<br />
2000 3.38%<br />
2001 2.83% -7.3%<br />
Region II (NCAL) Tribal<br />
Gaming Revenues (1999 $)<br />
2002 1.59% -8.7% +27.2%<br />
2003 2.27% -6.7% +27.8%<br />
2004 2.68% +10.5% +23.9%<br />
2005 3.39% -0.9% +20.1%<br />
2006 3.24% -4.1% +9.8%<br />
2007 2.85% -2.9% -1.2%<br />
2008 3.85% -22.4% -9.1%<br />
2009 -0.4% -15.9% -5.0%<br />
Growth ’00-‘07 -19% +162%<br />
Avg. Annual<br />
Change<br />
2.8% (Avg.<br />
‘00-‘07)<br />
-2.4% +23.2%<br />
To explain this anomalous decline between 2007 and 2008 the Fehr & Peers<br />
alternative baseline technical memorandum assumes that the gaming and hospitality<br />
market at NLT experienced both a permanent 32% decline in revenue due to the<br />
expansion of Tribal gaming and a 28% decline in revenue due to temporary impacts<br />
SEPTEMBER 8 , 2010 HAUGE BRUECK ASSOCIATES PAGE 8- 39