Nugget Project 2.0: New plan breathes life into effort

Monday night's presentation of the new plan for the Carson City Center development to the Nugget Advisory Committee has put this much-criticized project back on track, even winning over some long-time opponents.

The new plan is different enough it needs a new name: Nugget Project 2.0.

The new conceptual drawings and project details prepared by H&K Architects impressed the overflow crowd. For the first time, people were able to see just what this project could be if it comes to fruition, with its focus on 21st Century technology while still maintaining ties to Carson City history. The vague concept of a Knowledge & Discovery Center/Library gave way to a much more detailed vision. I'm hoping they can put together a video of these conceptual drawings and plans, because words alone do not do them justice.

There is a lot about these new plans to go over, so let me summarize some of the more important points and compare them with the old plan.

Land Ownership

Old Plan: At first, the land was to remain under the ownership of the Mae B. Adams Foundation, and leased in perpetuity by the city. That changed last fall when Nugget President Steve Neighbors relented to criticism and agreed to turn over the deed for the land at the end of the 30-year lease-to-own deal that would pay for the construction.

New Plan: The three acres under the proposed Knowledge & Discovery Center, public plaza and parking garage will now be donated to a nonprofit entity jointly controlled by the city, the Carson City Library Foundation and the Adams Trust. The land will still be deeded over to the city at the end of the 30-year lease.

Why It Matters: Clears up ambiguity about who owns the land, one of the first major criticisms of this project.

Controlling Entity

Old Plan: The Adams Foundation, along with a development partner (P3 Development) would control the project, with the city paying lease payments to the developer.

New Plan: A yet-to-be-created nonprofit entity that will be jointly controlled by the city, Library Foundation and Adams Foundation will have ownership of the land and be in control of the development.

Why It Matters: Gives the city and library foundation more control over the 30-year length of the project, and promises more transparency.

Taxpayer Obligation

Old Plan: Nearly all of the project would be funded with tax dollars, through a 1/8th cent sales tax, redevelopment funds and $1.2 million a year out of the city's general fund.

New Plan: Requires only the sales tax and redevelopment funds, with a one-time $500,000 to take care of water and sewer changes in the project area. City Manager Larry Werner also stated that since the city will not be issuing bonds, under state law they would be free to pull the plug at anytime if the need arose.

Why It Matters: The $1.2 million from the general fund was a big sticking point, considering the city just had to raise several fees to make up for shortfalls in the general fund. The public works department had already slated the $500,000 for utility work in that area, so in theory it doesn't cause any additional financial impact.

As for the city's liability, Werner was asked what the city could do in a worse-case scenario. Werner said that if the city ran into serious financial difficulties, they could simply move out of the facility and quit paying the lease. The state requires that government entities add a clause onto any contracts that make them subject to appropriated funds, meaning that if the government doesn't appropriate the funds, the contracts is null and void.

Private Fundraising

Old Plan: The Library Foundation was to raise some money, but the vast majority of the funds were to come from the city.

New Plan: The Library Foundation and Adams Foundation are expected to raise $18 million.

Why It Matters: Obviously, reducing the cost to taxpayers is a good thing. But having private money coming in can also have a positive impact on the economic stimulus effect of the project, as some of that will be money from outside the area, or money that was not being spent locally. The lack of private money, along with the need for general fund money, is what cost the old plan the necessary votes on the Board of Supervisors to get it passed. It looks like the new plan will get a much better reception.

Adams Foundation commits money

Old Plan: The Mae B. Adams Foundation would donate the land for the project (sort of, see above).

New Plan: Nugget President Steve Neighbors said that the Adams Foundation would make up for any shortfall in private fundraising to get the project off the ground. He also said that if sales tax or redevelopment funds do not meet expectations, they would not force the city to come up with that shortfall, and would instead just add extra years to the lease until it is paid off.

Why It Matters: This is the first time Neighbors has offered this kind of monetary assistance to the project, something that critics pointed out before in questioning his motivation. Neighbors would not commit to a specific amount, which is understandable since he doesn't want to hamper fundraising from other sources by detailing just how much of a financial backstop the Adams Foundation is willing to provide. The offer to protect the city from a shortfall in sales taxes or redevelopment funds helps smooth out worries that a continued recession or other economic problems would force the city to further raise taxes to pay their share of the project.

Federal Money

Old Plan: Promised to seek federal funding for transportation hub and other parts of the project.

New Plan: Applied for a specific $3 million grant to help fund main project.

Why It Matters: Library Director Sara Jones sounded confident that they can secure the $3 million grant they applied for despite Washington's money problems. That's $3 million less they would have to make up for in private fundraising.

Library Location

Old Plan: Library and public plaza were located in the center of the Nugget property.

New Plan: Library located at southern edge of property along East Proctor Street, with the plaza located on the north side of the library, between it and the parking garage.

Why It Matters: Some people were concerned that the library was too close to the Nugget Casino. This changes because it moves it farther away. It also provides more overflow parking in the adjacent state-owned lots.

Bigger, Better Library

Old Plan: Library was to be about 60,000 square feet, and was laid out as a simple two-story box.

New Plan: The library grew to 65,000 feet to accommodate a 180-seat auditorium. The layout is far from boxy, including a curved section that is supposed to harken back to the old V&T Roundhouse.

Why It Matters: Judging an architect's design is somewhat subjective, but even those long opposed to the project were saying very nice things about this design. It would clearly be one of the most interesting structures in the city. Besides the design, adding space to house an auditorium and other features makes this structure more multi-purpose.

Taller parking garage with retail spaces

Old Plan: $7.8 million 438-space parking garage, with possible space at bottom for retail.

New Plan: $9.1 million 395-space parking garage that leaves room for $1.7 million retail development at the bottom of the structure.

Why It Matters: The old plan was touted for its potential to create jobs, but there was no direct jobs created other than for the construction of the project. The retail space in the new plan would at least have the potential to create new jobs to serve those attracted to the property by the outdoor plaza, the interactive fountains for kids and an ice skating rink in the winter. The parking garage remains located where the Nugget's current valet parking is, thus doesn't alleviate concerns that this garage is merely a payoff to the Nugget, which will likely get the most benefit from it.

Transparency of the Adams Trust/Foundation

Old Plan: Neighbors had resisted sharing details of the Hop & Mae Adams Trust and the assets it holds with the public.

New Plan: Neighbors agreed to make financial details of the Adams trust available to the Board of Supervisors, though he did not give details on this.

Why It Matters: Due to the reliance on Neighbor's commitment to make up for any shortfall in private fundraising, the city needs to be assured that the trust has the means to back up that commitment.

Private Development

Old Plan: Build office buildings to house state agencies, business incubator and the city's planning and business development departments.

New Plan: Areas reserved for future private development, but nothing specific. City has not agreed to lease any other space for its departments. Business incubator is still possible, but was not discussed as a major part of the project as it was before.

Why It Matters: Some opponents looked at the possible deal for the city to lease office space in the new development at a higher cost than they do now as another way the city would be paying to subsidize the project. The new plan takes this issue off the table.

New Hotel

Old Plan: Allowed for a future hotel to be developed on the property.

New Plan: Same as old, but with a few new details.

Why It Matters: Neighbors shared some interesting tidbits about how this project will affect the Nugget Casino. He said that he has a hotel operator interested in building a new facility if the city decides to go ahead with the project. He also said they are looking at possibly turning over the top floor of the Nugget to a hotel operator to be used as a convention center for a new hotel. In addition, Neighbors said they may develop some outside retail spaces on the south side of the casino adjacent to the Laxalt building. But Neighbors wouldn't commit to remodeling the exterior of the Nugget Casino. He also didn't commit to keeping the Nugget as a casino, citing the challenges of the current gaming market. He did say they are committed to keeping the jobs the casino provides, possible transitioning into some other kind of business.

Overall

The new plan is much more detailed as to what the new library would look like and how it would be paid for. Under the old plan, the so-called public-private partnership had become all public, with all the money coming from the city. Having the promise of private money coming in makes it easier on the taxpayers while ensuring the other parties have skin in the game.

The basic structure will make it hard for the city to turn the plan down. The fact that the city will not be issuing bonds and have no liability, and the commitment from Neighbors to cover any revenue shortfalls by extending the lease makes this, at least on the surface, a no-lose plan for the city.

There are still questions to be answered, specifically about how the project will be financed and the operations of the nonprofit entity that will run it. But the new plan goes a long way toward making this project a reality.

Whether you are for or against, I think we owe some credit to the people who put this new plan together. They did a tremendous job in bringing this project back from the dead.

You can find the full plans here, or at the website: http://www.carsoncitykdc.org/