Commissioners seek update on Riverwood

County commissioners asked Thursday for answers on the status of the Riverwood project, set to be the beneficiary of $24.7 million in redevelopment funds.

So far, project developers haven't received any financial incentives which are to be paid out over 16 years of the owner participation agreement signed in December 2006.

Riverwood obtained a site improvement permit before work on the project stopped Dec. 9. The project is located on the east side of Highway 395 in northern Douglas County near Topsy Lane.

In order to receive their first incentive payment of $200,000, the developer must construct 30,000 square feet of commercial space and have occupancy of at least 25,000 square feet within 12 months of receiving the certificate of occupancy.

County Commissioner Dave Brady asked for a status review.

"I'd like to see an agenda item, bring all the parties together for a review of the covenants and financial viability of the project going forward," Brady said. "We've committed ourselves to $25 million with no revenue generation of any sort."

County Manager T. Michael Brown said the commissioners were welcome to ask, but Riverwood, as a private developer, had no obligation to respond.

"They can tell you if they want," Brown said. "How much they wish to reveal is up to them."

"They do a good job of not revealing anything at all," Brady said.

Brown said according to the agreement, Riverwood had followed the terms.

Community Development Director Mimi Moss said in a conversation she had six weeks ago with Riverwood developers, they hoped to resume work in late summer or early fall.

"Kohl's is on hold this year," she said. "They hope to start on it next year."

The site improvement permit expires 180 days after the work ceases, but Brown said the agreement didn't specify if the permit has to be valid.

The redevelopment agency was created in September 1997 and expires in 2027.

The purpose of the agency is to diversify commercial opportunities in North Douglas County and promote strengthening of the county's economic base.

So far, redevelopment agency projects have totaled just over $11 million.

Incentives worth $3.5 million were contributed toward the North Valley Plaza in November 1998 when Home Depot, Target, Ross and Staples moved into Douglas County.

AIG Baker earned $3 million in incentives with Carson Valley Plaza in 2002.

Two additional payments of $275,000 for Carson Valley Plaza are contingent on maintaining occupancy of 6,000 square feet.

Conditions have been met for both projects and contributions paid, Brown said in his presentation to the board.

Jerry Vaccaro, Lyla Lane resident and neighbor to Riverwood, said his property had suffered from dirt generated by the project.

"Since December, there's been a lot of wind and no dust control," he said. "There's a water tank up there but no water truck. I don't think you've given us due consideration from day 1."

Douglas County Deputy District Attorney Michael McCormick said the Riverwood owner participation agreement was under review.

The 2008 Douglas County grand jury found that the document was legal, but questioned the methods of former County Manager Dan Holler in putting the agreement together.

"The prior board was given information they acted on that was in error," Brady said.