A chat with Bo the Builder about redevelopment

With all the hyperbole about north county development I thought it was time for another chat with my old friend Bo the Builder.

Bo keeps his nose close to the development action up there.

"So Bo, what do you think about Max Baer's proposed casino, Big George's proposed mass of low cost multi-family residences, and a low-end shopping mall, all on that beautiful desert east of Highway 395 and north of Sunridge?" I asked.

"Glad you asked," said Bo. "Seems a lot of admirers are writing letters to the editor telling us how wonderful a county asset his casino will be. If compliments make Douglas County rich the government will swim in money. But you're the finance guy, can I presume you see a new casino resolving the county's fiscal condition?"

"Can the moon turn blue?" I replied. "Keep in mind all that property is on Douglas County redevelopment land."

"Well, so it is," Bo grinned. "That sagebrush and open space that nearby residents love is really blight in disguise, so county government has no choice but to cover it with buildings to beautify it for citizens."

"A little sarcastic, but maybe on the mark, Bo," I said. "But you ask what fiscal benefits a casino contributes to the county? Gaming tax goes to the state and a little comes back, a 400-room casino produces up to $100,000 a month room tax, both a pittance. Visitors and workers should generate some sales tax, but nominal. Face it, there aren't many glitter stores in north county for high rollers to spend money on. Low-end stores Kohls and Sportsmen Warehouse won't help much. Some of the spending will be swiped from CVI in Minden and the Lake casinos. If the past is a guide, will that revenue exceed increased county government costs? Impossible. Bo, you know more than I about the county redevelopment agency. Doesn't that use up money that normally would be available for county services?"

"You got that right," Bo opined. "Redevelopment is a twisty way state legislation gave counties to bamboozle taxpayers so we don't notice them using tax money to subsidize developers. If they paid developers directly from the county general fund we'd scream to high heaven. So they created an accounting gimmick called a redevelopment agency to divert new property tax revenue from the county to the agency so commissioners can subsidize developers most any way they choose. They made the accounting so muddy it's hard to see how much they spend and what on. Accounting is supposed to be transparent.

"Maybe an experienced accountant like you can follow redevelopment spending. I can't," said Bo. "I do know those taxes aren't available to pay for services like the sheriff, judicial system, social and senior services, road maintenance, libraries, and so on."

"You do go to the heart of the matter, Bo," I said admiringly. "The school and fire districts get their fair shares of additional property tax. But the county portion is legally ripped off by redevelopment to build infrastructure that casino and other developers should pay for. Redevelopment even re-roofed Jack's Valley School for $1.5 million as a 'favor' to the school district."

"And," Bo added, "they have to pay Jay Timon's company the $24.7 million they pledged for consolidating land parcels, put in infrastructure, profit for everyone, who knows what else.

"You didn't mention that 2/3 of redevelopment property taxes collected west of Highway 395, plus Big George's proposed high density housing development on the east side, comes from family homes. Families use county services but their property taxes don't pay the county for those services. Now you're saying they don't even produce more sales tax revenue than population and inflation would have produced anyway. And any high density housing development demands more county services than revenue can cover."

"I agree," I said, "that sure throws a monkey wrench into the theory the county can grow its way into fiscal prosperity, doesn't it?"

"But," Bo said, "UNR just endorsed a new study commissioned by the builders association validating it and the 10-year projection by Meridian Business Advisors on Douglas County."

"Don't get me started on that", I replied, "UNR just proved it will prostitute itself as a paid contractor without detailed knowledge of Douglas County cost structures. But if we can we meet again in a few days I'll explain why neither of those studies applies to the fiscal reality of Douglas County."

"Great, I'll look forward to it," Bo replied as we parted.

-- Jack Van Dien is a Gardnerville resident and retired executive.