RDA#2 is NOT a Tax Grab.
- RDA#2 does NOT raise taxes or impose any new taxes. There is NO taxpayer liability.
- Neither the Redevelopment Agency nor the County have agreed to issue any debt – bonds or loans – for the Tahoe South Events Center project.
- The Tahoe Douglas Visitors Authority (TDVA) will issue all debt for the Events Center, ensure its construction and operation, and is solely responsible for the repayment of any debt issued for the project.
- Property tax revenues that accrue to the Douglas County School District are not affected by RDA#2.
- RDA#2 is working to reverse the following declines in Stateline revenues and employment:
- 38% decline in County property tax revenue levied on Lake Tahoe casino properties between 2000 and 2017.
- 16% decline in room nights sold between 2002 and 2018.
- 54% decline in employment between 2003 and 2018.
- The Events Center is a centerpiece for the revitalization of the Stateline resort core, historically the County’s major economic engine. However, it is not an isolated improvement. Others can include a new fire station, a more pedestrian and bicycle friendly downtown, trail projects connecting the mountains and the Lake, additional water quality improvements, and elements of the Expanded Kahle Drive Vision Plan. These projects are consistent with the South Shore Area Plan adopted unanimously by the Douglas County Commission and TRPA Governing Board in 2013 and the Redevelopment Plan adopted unanimously by the County Commission in 2016. Each project will address the findings of blight identified in the Redevelopment Plan.
- A primary purpose of redevelopment districts is to “encourage investment by the private sector in the development and redevelopment of the Redevelopment Area by eliminating impediments in the redevelopment of the Redevelopment Area.” This is precisely what RDA#2 is accomplishing.
- Public sector entities are also engaging in redevelopment opportunities. A new fire station in Stateline for the Tahoe Douglas Fire Protection District may be a future RDA#2 deliverable.
- The revitalization of Stateline is clearly a public-private partnership. Over the past several years, resorts have made the following investments:
- Harveys $41 million
- Harrah’s $30 million
- Hard Rock $60 million
- MontBleu $25 million
Total: $155 million +
- Private sector investments in the Edgewood Lodge and Tahoe Beach Club are generating the largest share of redevelopment tax increment. The owners of these properties have stated publicly on multiple occasions they want the redevelopment tax revenues to be applied to further improvements around the same area where they have been generated (largely after RDA#2 was established). They support the entire Redevelopment Plan, not part of the plan.
- The RDA#2 investment of $34.25 million over 25 years will generate $3.9 billion over that same period of time, according to County estimates. This includes overnight visitor spending, room revenue, and both gaming and non-gaming revenue, each of which contributes to County revenues.
- The general trend in visitation is toward resort destinations that are focused on recreation and entertainment. The Events Center and other Stateline improvements, including new trail connections to Van Sickle Bi-State Park and Lake Tahoe will integrate well with these trends.
- Many businesses and tourism companies as well as individuals throughout the Carson Valley and the Tahoe Township spoke in favor the RDA#2 during public hearings conducted by County Commissioners. The Commission vote to establish RDA#2 was unanimous.
- If RDA#2 is repealed, the Douglas County Redevelopment Agency must still comply with all legal obligations it has approved under the Tax Increment Pledge Agreement with the TDVA. However, no additional redevelopment projects would occur within RDA#2.
- Accordingly, unlike the benefits generated to the Genoa Area and the County in RDA#1, which was in place for 20 years, further benefits and County revenues from RDA#2 investments will be cut short. County revenues will be negatively impacted if RDA#2 is cut short.
- Two important source documents for more information about the timeline, reasons and process for establishing RDA#2 and the value of the Events Center project are available on the TDVA website at org under Events Center, Studies and Reports. These are:
- March 19, 2020 County staff report “Findings Under NRS Chapter 279 for the proposed Tax Increment Pledge Agreement for the Tahoe South Events Center.” and,
- South Tahoe Events Center Opportunity Cost Analysis Final Report (SMG Consulting)
Vote YES on County Question 1
Retain the Investment of Redevelopment Area #2 (RDA#2)