Cathleen Allison/Nevada Appeal
The Nevada Indian Commission is facing a Catch-22 legal impasse that may well cost it the $280,000 in grants approved to remodel what will become the Stewart Indian Cultural Center.
Historic Preservation Officer Ron James told the commission's Stewart Advisory Committee on Friday that the state Public Works Department has taken control of the project and is requiring the commission pay administration and project management fees just like other agencies. Public Works also is mandating a full seismic retrofit before any other work can be done at the historic stone building.
The problem, James said, is that the grants are from the Cultural Affairs bond money, which can only be used for "bricks and mortar," not to pay Public Works administrative costs.
On top of that, James said, the state faces substantial federal penalties unless the first of two grants for the project is on the ground and being spent by Dec. 31.
"I don't see a pathway to save the grant because Public Works requires the fees and we can't pay the fees," he told the committee.
In addition, James said no one was aware a full seismic study and retrofit - potentially very expensive - would be required until recently. He said a high ranking Public Works official issued a report on the building earlier giving no indication seismic work would be required.
James said the issue should have been taken to the Interim Finance Committee a year ago but that no one knew Public Works would take charge from Buildings and Grounds. Several years ago, a decision was made requiring Public Works to manage such projects instead of B&G, which has always handled projects at Stewart.
"We're now up against a deadline to spend this money or we will receive substantial fines and delays in issuing other bonds," he said.
He said that means there is no alternative for the Historic Preservation Commission than to take back the first $150,000 grant at its Monday meeting and reallocate it to another project that can obligate it immediately.
He said, however, the commission doesn't have to take the second $130,000 grant made earlier this year at this point and that the commission should push to make sure it keeps its place in line if a way can be found to get and use state grant money.
He urged them to go after "Save America's Treasures" and other grant money as well as private funding that could be used to pay those administrative costs.
Robin Reedy, chief of staff to Gov. Jim Gibbons, told the commission she would work with Public Works to see if there is some way to fix the situation and let the project move forward.
Executive Director Sherry Rupert said the requirement to turn management over to Public Works came as a complete surprise. She said the grants were to be used for aesthetic remodeling because, as far as she knew, the seismic issues in the 100-year-old building had already been dealt with when the new roof was built.
She said she will attend the Monday Historic Preservation Commission meeting.
The complex, which includes a number of historic stone buildings, was the longtime federally operated Indian School. When the federal government shut down Indian schools nationwide, the complex was turned over to the state in 1981.