A Presentation on Sales Tax Anticipation Revenue (STAR)

Bonds to the

Assembly Taxation Committee

February 17, 2011

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Legends STAR Bond Overview:

The City of Sparks created the Tourist Improvement District to support the LEGENDS at the Sparks Marina development on July 23, 2007. This was the result of a five-year effort by the City of Sparks to create destination tourism activities that would drive northern Nevada tourism into the future. We can all agree a lot has changed in Nevada since 2007.

One of the bright spots for our community, northern Nevada, and our state has been the successful implementation and construction of the LEGENDS center. Today, the project still represents the hopes and dreams of many in northern Nevada to spur growth in our tourism and visitation.

Sparks reports those dreams have been built and continue to develop to meet the challenges to tourism we are facing from many growing gaming and entertainment markets. Today, the Scheels All Sports store remains the “WORLD’S LARGEST SPORTING GOODS STORE” and has made significant contributions to the “RENO TAHOE” experience, with more to come in future years.

The TID District is located adjacent to Interstate 80 at the Sparks Boulevard interchange in east Sparks. The development includes approximately 147 acres and is planned to accommodate 1,370,000 square feet of retail, a resort hotel, and entertainment. Currently, 55% of the project’s capacity has been developed, a remarkable accomplishment for RED Development, the City of Sparks,

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the region, and the state given the economic conditions we are all confronting.

The following is a summary of the key time lines and public financing used for the project to date:

RED Development Time Line: Exclusive Negotiating and Pre-Development Agreement Approved April 2004 Disposition, Development & Financing Agreement (DDFA) Approved March 2006 Mass Grading Permit Issued (1st Construction Permit) February 2007 Scheels Construction Permit Issued March 2007 First Pedestrian Mall Building Construction Permit Issued December 2007 Amended DDFA Approved April 2008 Scheels Grand Opening September 27, 2008 Pedestrian Mall Grand Opening June 18, 2009

Public Financing Time line: STAR Bonds, Series A ($77,540,000) Sold June 2008 STAR Bonds, Subordinate ($36,600,000) Approved June 2008 Local Improvement District Bonds ($26,385,000) Sold June 2008 Tax Increment Financing Bonds, 2008 Series A, ($11,000,000) Sold December 2008 Tax Increment Financing Bonds, 2009 Series A, ($7,500,000) Sold October 2009

Summary of Public Financing by Funding Type:

Funding Type  Net Proceeds 

Disbursed to 

date 

Under 

Review 

Remaining 

Funds  Comments 

Series A STAR Bonds  $60,471,507  $60,471,507    $0   Disbursed  7/2/08 to 3/6/09 

Accrued Sales Tax 

Revenues 

$2,535,880  $2,535,880    $0  

Disbursed 5/15 to 7/21/09 

Subordinate STAR 

Bonds 

$36,600,000  $32,392,671  $1,964,913  $2,242,416   Add’l info requested 8/12/09 

LID #3 Bonds  $21,725,459  $20,677,301    $1,048,158   Request  approved 9/18/09 

TIF 2008 Series A Bonds  $9,250,000  $9,250,000     $0   Disbursed 3/25 to 7/25/09 

TIF 2009 Series A Bonds  $6,000,000  $6,000,000     $0   Disbursed 11/19/09 

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Total  $136,582,846  $131,327,360  $1,964,913  $3,290,574     

Summary of STAR Bond Revenues Received to Date:

 

 

FY ‘08  FY ‘09  FY ‘10 

FY ’11 YTD  

(Through Nov. 

Sales)  Total 

TID Tax Receipts by Fiscal 

Year  $57,000 $3,401,000 $5,306,000 $2,361,000  $11,125,000

 

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