Plan might avert conflict over use of estate at Zephyr Cove

Friday, May 29, 1998 | 2:51 a.m.

During a special meeting Thursday, Douglas County commissioners and Juan Palma, chief of the Forest Service's Tahoe unit, discussed a deal that would let Park Cattle Co. proceed with plans to host conventions, weddings and other events at the estate.

Proposed is a new land exchange that would allow Park to retain private ownership of a luxury lakeside residence that had belonged to mutual fund tycoon Jack Dreyfus.

The exchange would follow a $38 million deal last year that gave the Forest Service 46 acres of estate land in Zephyr Cove. That's separate from another, pending $50 million deal involving Dreyfus land and buildings to the north, near Sand Harbor.

In Zephyr Cove, the land went to the Forest Service and buildings became the property of Phoenix-based Olympic Group. Olympic then sold the buildings to Park, but the Forest Service in February balked.

Bruce Park, head of Park Cattle Co., said the Forest Service "pulled the rug out from under us" by reneging on an agreement allowing for the commercial use.

Palma said the impasse could be solved through a new land exchange that would allow Park to own about 10 acres surrounding the estate buildings while some other privately owned parcel of equal value would go to the public.

The Forest Service wants the land to be available for open, public use, Palma said adding, "I want to be able to look my grandchildren in the eye and say 'I did what was my best to steward the land,"'

"Park Cattle Co. is willing to look at reasonable solutions, but they have to be reasonable solutions," said Park planner Gary Midkiff.

"We started into this process based on these understandings and now we are hearing something different," he added.