For many years the boundary at south shore between Stateline and the city of South Lake Tahoe was marked small motels shouldered right up to the big hotel casinos on the Nevada side. But this property figured heavily in the city of South Lake Tahoe's redevelopment plans.

Two years ago, using its power of imminent domain, the city acquired 13 motels along this block. They were torn down to make way for what would be locally known as Project Three, to be built by Lake Tahoe developer Randy Lane. When completed it will include 2 hotels, condominiums, retail and a 44 hundred seat convention center to be owned by the city.

Today the construction site sits idle. Final financing for the project fell through and in today's economic climate, big loans have just about dried up.

Originally scheduled for completion next summer, the work stopped a year ago. The expected revenue, eventually more than $4 million a year won't arrive on schedule or perhaps any time soon.

"The developer is out trying to arrange financing," says city Director of Redevelopment and Housing Gene Palazzo.

Palazzo is quick to point out that the city has lost little if any so far, room taxes are actually up, the motels that once sat here added little to the city's sales tax revenue and even as it sits the project is generating some redevelopment income. And, he points out, and the risk is on the developer. Still, he and everyone else would like to see the building begin again.

"We're doing all we can to support the developer in his search for financing.:

The project, now known as the Chateau at Heavenly Village, surfaced as an issue in a still unresolved city council race with one candidate critical of redevelopment efforts and urging the city to do more to complete it.

Politics aside, there appears to be little the city or anyone else at the moment can do. So, what some of its neighbors call "the Big Hole" will sit waiting along with the city for better times.