$419.4 million building plan OK’d

Thursday, June 2, 2005 | 9:45 a.m.

CARSON CITY -- A record $419.4 million building program will be undertaken by the state in the next two years, with higher education getting $200 million for new buildings.

The Senate Finance Committee and the Assembly Ways and Means Committee gave final approval to the capital construction list Wednesday, adding $134.4 million to the projects previously approved.

This is above the $321.9 million recommended by Gov. Kenny Guinn and far above the $218.3 million approved in 2003. Dan O'Brien, general manager of the state Public Works Board, said it's the first time a construction program topped $400 million for a two-year period.

The state will issue $211.8 million in bonds, will pay $81.8 million in cash and the rest will come from donations or federal funds.

Sen. Bob Coffin, D-Las Vegas, said he was disappointed the committees decided to issue the $211.8 million in bonds when the state had a big surplus and could have paid cash. He said it would have been cheaper to pay the cash up front rather than issuing these bonds for 20 years.

Deputy State Treasurer Robin Reedy, when asked by Coffin, said that a $50 million building, when financed by bonds over 20 years, ends up costing the state $80 million to $100 million depending on the interest rates.

The two committees agreed Wednesday to allocate $8.6 million to replace the tiles that have been falling off the Sawyer State Office Building in Las Vegas. Senate Majority Leader Bill Raggio, R-Las Vegas, said the money would be dished out by the Interim Finance Committee.

He said the Public Works Board, which handles construction projects for the state, would have to get Finance Committee approval whether to use new tiles or stucco on the outside of the building.

Also approved was $1.2 million for planning a new headquarters for the state Parole and Probation Division in Las Vegas. The present building will eventually be torn down and the new structure will be built on the site.

The two committees previously decided to build two instead of three housing units at the High Desert State Prison near Indian Springs, expected to save an estimated $14 million of the planned $58 million.

The two committees previously approved $27.1 million for the Las Vegas Readiness Center to house five National Guard units. The federal government will pay $15.1 million of the cost.

Also, $ 2.6 million was set aside for advance planning for a women's prison re-entry center in North Las Vegas, but the committee declined to provide $383,366 for advance planning for a 1,500-bed men's prison at Indian Springs. The committee gave prior approval for $1.9 million for advance planning for a 626-bed prison conservation camp at Indian Springs.