The Board of Supervisors will be asked to issue more than $5 million in general obligation infrastructure sales bonds at their Thursday meeting, which starts at 8:30 a.m. in the Robert Crowell Board Room of the Carson City Community Center.
According to Chief Financial Officer Sheri Russell, the proposed resolution directs the Carson City Clerk-Recorder to give notice to the Carson City Debt Management Commission of the city’s intent to issue general obligation infrastructure sales tax bonds in an amount not to exceed $5.55 million for infrastructure projects, namely the William Street corridor project. Russell said the total project budget is about $22.2 million, including federal funds.
William Street is a former state highway that now serves as a primary commercial gateway from Interstate 580 into Carson’s downtown core, Russell explained, but also includes residential uses and is frequented by Carson High School students.
“Current conditions of the roadway — including excessive right of way width, poor lighting and lack of sidewalk connectivity and safe street crossing locations — have led to pedestrian-vehicular accidents and a pedestrian death,” Russell said.
The project includes street replacement, stormwater improvements, as well as underground water and wastewater pipe replacement.
The interest rate on the proposed bonds was estimated by the JNA Consulting Group to be 5 percent. Estimated annual debt service payments of around $553,000 for 15 years will be paid from the Infrastructure Tax Fund. The bonds are secured by a lien on a one-eighth of 1 percent infrastructure sales tax imposed by an ordinance adopted by the Board of Supervisors on May 1, 2014.
Other agenda items:
• Supervisors will consider subordinating interests in a 2.91-acre parcel of land along Butti Way to further an affordable housing development agreement between the city, Palaseek LLP, Oikos Development Corp., and Sierra Flats. The subordination agreement would be between the city, developer, and Western Alliance Business Trust. The latter organization is seeking the subordination agreement to secure a $2.2 million loan for the project. According to the development agreement, the developers must construct affordable housing on the property that will be in use for at least 51 years.
• The board will consider a $400,000 settlement offer tied to years-long litigation between the city and Tahoe Hemp LLC. The original litigation involved Tahoe Hemp’s plans to grow hemp on city-owned open space known as Buzzy’s Ranch. The city purchased the land from the Jarrad family in 2010 with a $2.8 million grant from the state lands division. As part of the purchase and sale agreement, the Jarrad family has the right to continue to use it or lease it for ranching and agricultural purposes as long as it is “preserved and managed in a near natural condition,” according to Carson City municipal code.
But when Tahoe Hemp applied for a permit to grow hemp on the property from the Nevada Department of Agriculture, the city was concerned the crop would jeopardize its state lands grant, did not provide authorization, and Tahoe Hemp sued in 2020.
City Manager Nancy Paulson wrote in the staff summary that if the board chooses not to accept the settlement offer, the District Attorney’s Office will continue to defend the city in an appeal before the Nevada Supreme Court.