South Lake Tahoe residents get closer look at new Highway 50 diversion plan called Tahoe Loop Road

SOUTH LAKE TAHOE, Calif. (KGO) -- The public is getting a closer look at what the $100 million makeover of the tourist and commercial center of South Lake Tahoe may look like.

The plan, known by many as the Tahoe Loop Road, would realign Highway 50, which is now the main route through the city of South Lake Tahoe and Stateline, Nevada, where the large casinos are located.

Highway 50 would be diverted to run behind Heavenly Village and the casino core and farther away from the lake.

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The overall plan has already been approved by the Tahoe Regional Planning Agency (TRPA), but there are still a lot conditions that have to be met before it becomes a reality.

One of those conditions is the redesign of the South Lake Tahoe and Stateline commercial area to make it more attractive, walkable, transit accessible and environmentally friendly.

On Tuesday, a range of public agencies gave a progress report, including renderings of some of the options under consideration. Public open houses to discuss the plan will be scheduled in the next few months.

The TRPA is organizing a stakeholders working group that will begin meeting later this month to develop a "Main Street Management Plan." It will include representatives from transportation, business, recreation, tourism, and environmental sectors, as well as local government partners.

The $100 million estimated cost includes replacement housing for homes that will be torn down to accommodate the rerouting of Highway 50.

Even though completion of the new highway route is years away, Carl Hasty, executive director of the Tahoe Transportation District, says the agency has committed to building deed restricted affordable housing before Highway 50 is relocated.