Douglas County commissioners redevelopment sunset at least six months away
Even if Douglas County commissioners vote to eliminate Redevelopment District No. 1, that won’t happen before July 1.
A meeting on the future of the redevelopment agency that includes northern Douglas County and Genoa is scheduled for 3 p.m. Dec. 18, Commission Chairman Barry Penzel said at a recent meeting.
“The end date will not be in this fiscal year,” Penzel said. “There are a lot of findings that need to go into this. If it’s going to happen, we need to decide the issue before the budget year.”
In Nevada, the fiscal year starts July 1. The redevelopment district would not sunset until after June 30.
An Oct. 2 meeting on the agency’s fate was postponed after the Oct. 1 mass shooting in Las Vegas.
The agency was created Oct. 2, 1997, in an effort to increase taxable sales after a threat that the state Legislature might require all Nevada counties to generate their own revenues.
Redevelopment agencies generate revenue based on increased property values in the area. Before the agency was created in the north county, it was mostly sagebrush and storage units. The agency subsidized the arrival of Target, Home Depot, Best Buy and Walmart, among others, to the county.
It also extended sewer to Genoa and paid for the town’s renovation and the extension of a trail between it and David Walley’s Hot Springs.
The county’s big bet on redevelopment was across Highway 395 from Walmart where a $24.7 million deal would encourage the construction of a new shopping center and casino.
Grading work began but was halted by the recession, leaving a large flat spot at the county’s northern entrance. Also several of the big box stores brought to the county by redevelopment incentives, including Borders, Ross Dress for Less and Staples, left during the recession.
The county never did achieve the goal of increasing taxable sales to the point where state subsidies were no longer needed.
In September Douglas County generated $1.07 million taxes. The state guaranteed $1.2 million. Douglas is one of eight Nevada counties that is guaranteed a revenue stream, including Lyon.
The agency generates roughly $2 million a year.
That money can only be spent on infrastructure improvements that directly benefit areas in the agency. That includes $2.7 million for the North Valley Wastewater Treatment Plant so it can be finished.
Estimates are the district would have $3.053 million in the bank by the end of June.
According to the county, there are 19 tax funds that would benefit from elimination of the redevelopment area.
The largest is the county general fund, which would receive $641,248 a year. The Douglas County School District would receive $564,883 a year in property taxes, while the East Fork Fire Protection District would receive $361,248 a year.
The two communities affected by the area are Genoa and Indian Hills. Both have received benefits from being in the area, but Indian Hills would receive $57,514 a year without it, while Genoa would receive $13,800.
The area also limits the benefit either community would receive by expanding its territory to receive additional property tax revenue. Genoa Lakes is located in the area, as is most of the commercial zoning in the north county.