State approves senior complex

Wednesday, Aug. 14, 2002 | 8:51 a.m.

CARSON CITY -- The state Board of Finance approved a $15 million financing plan Tuesday to build 244 apartments for senior citizens in Henderson.

State Housing Administrator Charles Horsey III cited an "acute shortage" of decent, safe and sanitary housing rentals in the area of Seven Hills Drive and St. Rose Parkway.

Robert Nielsen, one of the project's principals, said construction should start by November and the first units should be ready in eight months.

They will be one and two bedrooms and rents will range from 30 percent of median income to 60 percent of median income.

Horsey said Nielsen, who has developed other projects, has "done an excellent job" of maintaining his work and not letting it deteriorate after the completion of the construction. Horsey said these would be energy efficient units.

Other principals in St. Rose Senior, a Nevada Limited Partnership, are Chris Santoro of Reno, Mike Gancar of Newport Beach, Calif., and Paramount Financial Group, which is putting up $6 million.

Using state-approved variable rate mortgage revenue bonds will allow a lower interest rate on the construction loan.

The finance board also agreed to accept up to $50 million from the Clark County School District to be invested in the Local Government Investment Pool.

State Treasurer Brian Krolicki said 77 other local governments in Nevada use the state's program in order to gain higher interest rates.

Krolicki said the money from the School District comes from construction bonds approved but not yet spent.

Krolicki also reported to the board that the rate of return on the investment of state money dropped to 2.83 percent in the three-month period ending June 30. The rate for the previous quarter was 3.02 percent.

Total interest earn this past fiscal year was $37.2 million, compared to $61.5 million in the prior fiscal year.

"The market continues to be chilling," Krolicki said. There have been 11 interest rate reductions in the last year, he said.

The treasurer's office invests in U.S. Government and Agencies, certificates of deposit and commercial paper.