Redevelopment funds shifted from businesses

By Cassie Tomlin (contact)

Friday, Oct. 31, 2008 | midnight

Most redevelopment grant money will now fund city capital improvement projects and not improvements to private businesses, the Redevelopment Agency decided at its Oct. 22 meeting.

The City Council, which acts as the agency, voted unanimously to move 65 percent of its annual grant money to the city's capital improvement fund. It also gave away more than $70,000 in grants and committed $150,000 of capital funds for city utility projects.

Tax money from increases in property value in the redevelopment area since 1999 funds the quarterly grant program, which has to date awarded more than $7 million to businesses or individuals who apply to fix blight or increase economic development.

The decline in local business requests for grants has sent the agency in a different direction — applying the money to the city's needs, not for individual business owners' renovations or landscaping.

Many downtown businesses have in nine years accepted money for exterior renovations, among them the Boulder Dam Hotel, Boulder Theatre, several restaurants and most motels in town.

Councilman Mike Pacini, who was on the original board, said the agency has accomplished its initial mission, and said he supported the reduction of grants.

Councilwoman Linda Strickland said anything that is deteriorating is eligible for RDA money, including sewer lines, which are not seen. She said she would replace the grants with loans entirely and focus on maximizing the city's funds during the economic crisis.

The board voted 4-1 to annually move $150,000 of the Redevelopment Agency's capital money to the city's Capital Improvements/Special Projects account, for repairing aging infrastructure.

Councilman Travis Chandler voted no.

"If we start diverting RDA money to the utility fund, I don't think that's proper."

The City Council still must approve appropriating the money, but the council members also sit as the Redevelopment Agency.

Finance Director Tim Inch said the money would retain its "RDA character" in the utility account, and would continue to be spent under redevelopment guidelines.

"You couldn't appropriate it to any new utility project," he said.

Inch agreed, at Strickland's request, to specify on monthly financial reports what the RDA money in the utility account is funding.

The board voted 4-1 to award Bob Valley $20,250 to spruce up his commercial property at 3121 Nevada Highway. Chandler voted no.

Valley said the building needs new paint and asphalt so he can retain his tenants and said the renovations will cost him $67,515, including the grant.

The board also voted 3-2, which Chandler and Strickland dissenting, to match a $50,000 Nevada Department of Transportation grant for two entryway signs on U.S. 93 — one at Railroad Pass and one at the National Park Service boundary.

Mayor Roger Tobler said the signs would instill community pride and said that made them worthy of RDA money.

Former City Councilman Bill Smith, who said he proposed the city's Redevelopment Agency in 1999, suggested in two weeks he could find a band of citizens to pay for the signs.

He said the program has lost its original purpose and no longer fixes blight.

"There have been a lot of opportunities missed," he said.

He said doesn't think the city should seek out people who want the money, but instead seek out blight to fix.

Pacini disagreed.

"I don't believe my vision for the RDA has changed since day one," he said. "It's to address areas of blight in the business district and downtown areas. It's sort of a public-private partnership to help enhance the business district."

Cassie Tomlin can be reached at 948-2073 or cassie.tomlin@hbcpub.com.