A developer has come forward with a proposal for the eastern portion of Douglas County's redevelopment district on the Carson City line.
Commissioners could provide the company with a $24.7 million incentive from redevelopment funds at their meeting today.
If approved, Riverwood Redevelopment LLC would receive the funding over 16 years on the proposed commercial development.
"The primary purpose of the proposed action is to stimulate a substantial investment in commercial development in a core retail area to the benefit of the county's tax and economic base," said Douglas County Manager Dan Holler in a report to commissioners.
Carson City Mayor Marv Teixeira said Wednesday he thought it was premature to talk about the proposal because Douglas County officials hadn't made up their minds about it yet.
He did note, however, that to provide that large of an incentive to a developer is "a roll of the dice."
"But that's up to Douglas County," he said. "If it succeeds, we'll all benefit in the long run."
The law "allows a redevelopment agency to provide incentives to stimulate investment, and that's what they're proposing," said Joe McCarthy, Carson City's redevelopment manager.
As far as Carson City is concerned, "We have to compete to bring sufficient retail sales to provide services, and we're looking at prudent ways to encourage retail development," he said. "It reinforces what we're doing to revitalize our moribund shopping centers, too."
This is the second proposal for the property, owned by Carson City auto dealers Michael Hohl and Dink Cryer. Developers AIG Baker walked away from a similar deal in 2005. At that time, Douglas County's Redevelopment Agency offered more than $11 million in funding to help with improvements, but AIG said it wasn't enough.
"That's why they walked away from the deal, and in my mind, that's perfect," Holler said. "If they can't make it work, I don't want it to go forward."
Former AIG employee Jay Timon, who now represents Riverwood, said there are huge challenges for this piece of property.
"That's why the property is just sitting there, he said. "Significant off-site improvements must be completed before anyone can move forward."
The property sits low. There is no access off Topsy Land and water and sewer access will require easements, Holler said.
The agreement is tied to two parcels totaling just 4.8 acres, but also stipulates that at least 30,000 square feet of commercial space be built. Of that total, 25,000 square feet must be leased.
The 4.8-acre parcel can be easily monitored over time and that development will promote other investment, Holler said.
If approved, Douglas County's redevelopment agency would make its first payment of $200,000 in 2009. Those payments would increase each year until the last, a $2.5 million payment in 2024.
Through 2027, the project will generate an estimated $45 million in revenue for Douglas County's general fund, $44.5 million for the Redevelopment District and $7.6 million in for the East Fork Fire & Paramedic Districts, according to a report by Meridian Business Advisors.
Sales tax revenues can fluctuate with the market and economy, but as Douglas County becomes more reliant on sales tax, that source needs to be developed and expanded. Hopefully, as the commercial sector is developed and the mix of commercial businesses increases, that fluctuation will be mollified, Holler said.
"A mix of commercial businesses could help level any potential fluctuations, he said.
If approved, construction should start after July of 2007 and be completed in four phases. A buildout is expected to take five years, the Meridian report said.
Nevada Appeal reporter Terri Harber contributed to this report.
• Contact reporter Susie Vasquez at svasquez@recordcourier.com or 782-5121, ext. 211.
Redevelopment
• Originally intended to fund the revitalization of blighted urban areas, redevelopment finances improvements through tax increment financing. Rather than directly taxing property owners within the affected area, a portion of the local tax revenues beyond a base level are siphoned off for improvement, modernization, reconstruction or rehabilitation.
• Funding comes from the increase in property values so no property tax increases are involved, but revenues from those increased valuations will not be available for other improvements until the bills for redevelopment are paid.
Background
• The deal is very similar to that made with Carson Valley Plaza developers. If the measure is approved and the development moves forward, Douglas County's payments for redevelopment to Carson Valley LLC will overlap with those made to Riverwood from 2009 to 2011.
If you go
What: Douglas County Board of Commissioners meeting
When: 9 a.m. today
Where: Douglas County Administration Building, 1616 Eighth St. in Minden