RDA2 Puts the Cart before the Horse

A $137 million “economically sustainable” house

Richard Developer
Hey, Good Morning, John Q. Public. Come on in. Have a seat.

John Q. Public
Yea, hey, Richard, Good Morning.

Richard Developer
I’m so glad you came in this morning. I have got some good news for you: I can build your house!

John Q. Public
Oh! That’s fantastic!  Can I ask how much it’s going to cost?

Richard Developer
Cost is relative.  We’ll build it in thirteen phases.

John Q. Public
Thirteen? Thirteen phases?

Richard Developer
…The first phase will cover one wall.

John Q. Public
Wait – what – one wall…?

Richard Developer
Exactly! Phase one is for the first wall…

John Q. Public
The first wall!

 Richard Developer
Exciting, isn’t it?  Before we can begin construction, you’ll need to take out a mortgage.

John Q. Public
Of course – a mortgage – for how much?

Richard Developer
I’m not exactly sure.

John Q. Public
um…

Richard Developer
It really doesn’t matter, anyway.  Let’s just say we start with a $137-million-dollar thirty-year note. That should be enough to get started…

John Q. Public
Should
be enough!?  Um, when do you think I’ll be able to move in?

Richard Developer
Now, hold-on there, Hoss.  I see you’re excited to get going; but, we really need to talk turkey. 

John Q. Public
Turkey…right.

Richard Developer
After you sign the thirty-year note, naturally, we’ll design the rest of your house including the foundation on which the first wall stands; and then, we’ll need to guesstimate how much more money you’ll need to borrow to pay for the remaining twelve phases.

John Q. Public
Naturally…

Richard Developer
I – must – say, John – I’m really excited about building your new economically sustainable house.

John Q. Public
Of course you are.

all_inclusive

No End in Sight

RDA2 was created with a budget that covers only one of thirteen areas at Stateline deemed to be “economically blighted”; and, with the exception of a thirty-year debt-servicing plan, no practical end to revitalizing all thirteen areas is in sight. RDA2 puts the cart before the horse.

A $100 Million Gamble

Residents of Douglas County are slated to be put on the hook for $113 million dollars for one – and only one – RDA2 construction project: a risky $100 million event center at EDGEWOOD COMPANIES Mont Bleu Casino Parking lot.

Double-funded?

It’s all about servicing the debt. The Douglas County Board of County Commissioners (BOCC) seem all too eager to loft a $25 million bond to begin tapping Douglas County residents to help pay for the “economically sustainable” event center’s thirty-year note. All-the-while, Senate Bill 461 (SB461) provides for a $5 per night surcharge on top of an already existing fourteen percent Transient Occupancy Tax (TOT) fee. Over a 30 year period, projected SB461 revenue may amount to around $137 Million dollars – almost twice the projected cost of the event center.

Effective July 1, 2017 the Transient Occupancy and License Tax rate is 14% for the Tahoe Township. Per Nevada Senate Bill 461, a $5 tourism surcharge on the per night charge for the rental of lodgings in the township is effective July 1, 2019.

What’s it Really Going to Cost?

It may come as a surprise to many the $25 million bond has been in the works since at least June 2019. Exactly how would the $25 million bond be spent? It will be applied towards servicing the event center’s debt – approximately $6.5 million per year for the next thirty years. Meanwhile, has anyone at TDVA uttered a single word about the other twelve properties deemed to be economically blighted? Take a look for yourself. All the focus of RDA2 is on the event center.

More Bonds and Ever-increasing Debt for Douglas County, NV?

The event center’s $100 million construction and bond-servicing costs notwithstanding, while thirteen areas of economic blight at Stateline, NV have been clearly listed in RDA2, apparently no explicit plans and associated cost-estimates for revitalizing them have been defined or communicated to the public. The TDVA’s supposition is their $100 million event center revitalization gamble will pay off. Meanwhile, what have Douglas County Residents got look forward to when the TDVA turns it’s focus on the remaining twelve: more bonds and ever-increasing debt? Perhaps the TDVA and BOCC don’t view this as a risk, as they know Douglas County property taxes can be increased incrementally over time?

“California shut down its 400-plus local redevelopment agencies (RDAs) in 2012, following years of local governments using the entities to skirt constitutional requirements and fiscal responsibility.”

Shirley Svorny

This is how municipal governments go belly-up. Even California – the promised-land of bad ideas – dissolved all 400+ RDA’s in their state.

On pages 16-19 of the Summer 2014 edition of Regulation, Shirley Svorny wrote an article on Public Finance entitled, Why California Dissolved its RDAs. In it, she wrote, “California shut down its 400-plus local redevelopment agencies (RDAs) in 2012, following years of local governments using the entities to skirt constitutional requirements and fiscal responsibility.”

Dissolve RDA2

Are you disgusted by the prospect of making on-going payments against incessant bond-funded projects with no end in sight?  Would you prefer our tax dollars be applied toward neglected essential services that the BOCC tells us we can’t afford; and yet has no qualms over supporting a $100 million gamble? Sign our referendum to dissolve RDA2, today; and, remember to vote Walt Nowosad for Commissioner in 2020.

all_inclusive
Elect “Walt” Nowosad for Commissioner

Please vote for me so I can assist in returning deliberative and honest processes to the Board of County Commissioners and keep our county rural, scenic, and quiet.

To run a vigorous campaign against the liberal establishment, I need your help. If you agree changes are needed in the BOCC, please donate or volunteer, today.

Leave a Reply