The Carson City Board of Supervisors is expected to decide whether to approve the addition of property to the South Carson Street redevelopment area during its June 1 meeting.
What is the purpose of a redevelopment district?
It's a way to jump start business investment. It's a tool to provide incentives to business owners and would-be business owners so they will invest in Carson City. This proposal is an addition to the redevelopment area on South Carson Street that was established in 2004 to foster better auto sales.
The area proposed for inclusion has many empty commercial spaces, such as the old Wal-Mart building.
What is the money used for?
Redevelopment money is used on a variety of improvements within that area, such as streets, lighting and landscaping improvements to make the area more business-friendly. Money culled also can be used for job creation, and to attract or improve cultural, retail, educational and recreational amenities within the community. Any spending must be linked to economic improvement efforts within the redevelopment area.
Where does the money come from?
Property owners within a redevelopment area pay property taxes, and a portion of that tax money is put aside for these improvements. The amount of money collected is expected to rise as more businesses begin to operate within the designated area, and these excess amounts are put aside in a redevelopment fund. Only the amount exceeding the assessed value of the year in which the area was established will be earmarked for this purpose. State-mandated tax caps still apply, too.
What is different about this plan, as it relates to homeowners?
Use of eminent domain would be limited primarily to commercial properties that have deteriorated or been abandoned to the point of creating hazards to public health and safety or needing to be torn down.
Just because the redevelopment agency won't take a piece of property, it doesn't mean another government department can't take it for a road or school project.
Why are people's fears intensified about eminent domain?
New London, Conn., sought to condemn 90 acres of land containing 63 homes to ease development of offices, a hotel and upscale housing. A group of 15 property owners sued to stop the condemnation.
The Supreme Court, however, found in June that governments do have the right to take property for public good, including if the projects are private.
Carson City can condemn property in the downtown redevelopment district. The supervisors approved an ordinance in 2002 to do this. This option hasn't been used, however. The supervisors haven't sought to use eminent domain for redevelopment. The eminent domain options for the downtown district might change to reflect the current board's dislike of the practice.
Sources: Joe McCarthy,
economic development and redevelopment manager,
The Associated Press.
• Contact reporter Terri Harber at tharber @nevadaappeal.com or 882-2111, ext. 215.