Carson city supervisors to revisit V&T railway bonds

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The $15 million in bonds for reconstruction of the historic Virginia & Truckee Railway will be the topic of a brief meeting Thursday of the Carson City Board of Supervisors.

While the bonds were sold in December, the supervisors need to OK an agreement between the city and the state allowing the state to collect the tax money on the city's behalf referred to as an interlocal agreement, said Tom Minton, the city's finance director.

"This is a necessary procedural step," Minton said.

The extra one-eighth cent sales tax was approved last fall and is expected to bring in $1.14 million each year to pay off the bonds. Annual payments on the debt - principal and interest - will occur from 2007 to 2026 and will total $23 million, according to Minton.

It raised the city's sales tax rate to 7.12 percent, he said.

State lawmakers last year approved the issuance of bonds by smaller counties for cultural and historic purposes. Carson City lobbied for the bill, targeting the V&T project for this type of fundraising effort because of its various potential benefits to the community and its economy.

The V&T Railway will be a $30 million, 18-mile tourist route running between Virginia City and Carson City that could feature a depot, Chinese workers museum, adjacent retailing and nearby multiuse non-motorized trails.

Officials believe construction of the railway will be completed in late 2009.

• Contact reporter Terri Harber at tharber @nevadaappeal.com or 882-2111, ext. 215.

If you go

WHAT: Board of Supervisors special meeting

WHEN: Noon Thursday

WHERE: Sierra Room, Carson City Community Center, 851 E. William St.

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