6/01/09 - According to the Channel 2 news on Saturday night, AB458, the legislation I have previous ranted about as effectively killing redevelopment, passed over the weekend. Gibbons originally vetoed the legislation, however that veto was overidden in the Assembly 36-5. I understand the need for a rainy day education fund, however as I pointed out previously, Buckley has no concept of redevelopment or how it actually helps schools in the long run. I don't have any news yet on what happened to AB458 in the Senate, but stay tuned.
Regarding STAR bond legislation, according to RGJ, it's in danger of dying in the Senate.The article is a bit confusing to me. As I read it, the bill was introduced by a Star Bond critic who wanted to increase school funding by eliminating the ability of Star Bonds to access the "school portion" of increased property taxes inside a star bond district. But, there also seems to be an upcoming deadline - that may completely deny NNUD, the Baseball dudes and presumably Trench cover retail (as well as Las Vegas proposed projects) the ability to use Star Bonds because those projects lie inside redevelopment areas that are already being funded by Tax Increment revenues - so called "double dipping". So - am I right in thinking that if the bill dies, it kills BOTH the attempt to limit Star Bond funding by exempting the portion for schools but also kills the use of Star Bonds inside Redevelopment districts by not eliminating some unspecified "legal deadline" that will supposedly end that practice unless developer supported amendments to eliminate the deadline - now inside the proposed bill - make it though the legislative process and into law? Is that how all of you read it as well?
"...developers planning projects in downtown Reno don't want to lose the sales tax revenue Smith wants to protect for schools. They argued they have been counting on the revenue while designing their projects. "
"Our project relies on the existing law, said Steve Polikalas, a lobbyist for Northern Nevada Urban Development Co., which wants to use STAR bonds to redevelop a neighborhood on the north end of downtown."
"Developers have also used the bill as an opportunity to seek the elimination of an upcoming deadline that would prevent STAR bonds from being used in redevelopment districts. Lawmakers see such 'double dipping' as costing government both sales and property tax revenue."
The deadline puts both Polikalas' project and a retail development planned around the Aces Ball Park in danger.
And as Reno developers work to protect their own projects, Las Vegas businesses also are working their own deals. Harrahs Entertainment wants a special exemption for the stadium it wants to build with STAR bonds and the city of Las Vegas wants to be able to use STAR bonds in its redevelopment areas.
Stay tuned for more STAR Bond news.....