A Moonshine reader recently mailed us a letter, asking if we could figure out why Tahoe Forest Products (TFP), the relatively new sawmill facility in Carson City just off Highway 50, wasn’t producing. “They’re well stocked with Caldor Fire trees but no sawdust,” he wrote. “I’ve heard rumors, but what are the facts?

Indeed, the facility opened on Dec. 18, 2023, to quite a bit of fanfare — local publications, as well as Bloomberg, reported on just how critical Tahoe Forest Products would be in supporting healthy forests, fire recovery efforts, the local economy, and more.

But our reader is right. Two and a half years later, and TFP is sitting silent. I reached out to Kevin Leary, CEO of Hallador Investments, which is the primary investor in the facility, to understand the latest. ~ AH

There were rumors in late 2025 that the facility was closing and/or reporting bankruptcy. A Carson Now article reported that wasn’t the case, and that the facility was in the process of “retooling and upgrading” operations and machinery. Is that still the status, and how far along are those updates? Will the facility operate at full capacity soon?

Kevin Leary, CEO of Hallador: TFP did pause production in mid-2025 and it remains paused. The sawmill facility was originally designed using the lowest-possible cost machinery, meaning old and heavily used, which was a mistake. Too many breakdowns and too slow a production pace meant the initial facility was not financially sustainable. We also paused construction of the planer mill (which will sit to the north of the sawmill building, closer to Highway 50), to avoid making the same mistake twice. We expect to commence upgrades in June, and to be in production a year from now. More modern improvements will enable the facility to operate sustainably.

“Too many breakdowns and too slow a production pace meant the initial facility was not financially sustainable.”

~ Kevin Leary, Hallador Investments CEO

How is the facility funded, and are there concerns for ongoing financial support?

The company is funded by local private investors who care deeply about our region’s forest health, water quality, recreation, and cost of living (including home insurance costs), and who want to support the local economy. TFP will continue to have the support of the owners as long as the prospect of sustainable operations remains.

How is TFP working to address complaints by neighbors, including noise and bright lights?

Several of our neighbors have direct communication access to on-site management at TFP. In the past, we have worked with neighbors to address specific concerns, including repositioning lights and replacing diesel generators with fixed power. We engaged a local landscaping company to install several hundred thousand dollars [worth] of trees and plants along Bucks Way to the south and west.

We should add that occasionally complaints are directed at us that are not of TFP’s making. There are other tenants on the same parcel, and we have received complaints (e.g. dust) that are outside of our lease area or control. In other cases, loud nighttime noises or truck lights might be attributed to TFP but have nothing to do with the mill.

Is the facility feeling impacts from national changes to the U.S. Forest Service, which is undergoing massive restructuring?

TFP tries to maintain close relationships with the USFS at both the local and national levels. In our view, the goal of the changes underway is to move decision-making to the local level and empower local leadership, accountability, and action. There are layers of hierarchy and bureaucracy that probably should go away, like there are in any organization that has been around over a century. (If the readers want an analogy, they can listen to Jon Stewart interview Ezra Klein, co-author of Abundance, on the rollout of rural broadband, administered by a different federal agency. [Editor’s note: Listen to Why We Can’t Have Nice Things with Ezra Klein on The Weekly Show with Jon Stewart wherever you listen to podcasts.])

Locally, we have seen some disruptions, and certainly some over-extended and tired USFS friends picking up more responsibilities. But our hope and expectation are that the changes result in a localized, commonsense approach to forest management. To that end, the USFS recently awarded our partner, the Washoe Tribe, a 20-year Master Stewardship Agreement to empower the tribe and partners to take on a larger role in planning and implementing forest health treatments.

Are trees from the 2021 Caldor Fire still on site?

Yes, but very few. The logs received in the past two years are from fuels reduction treatments (i.e., green trees, not burned or salvaged) in the Tahoe Basin and surrounding national forests (Inyo, Humboldt Toiyabe, Eldorado, Tahoe) plus a smaller number from neighborhood and HOA fuels reduction projects.