2021 2:00:00 PM

Meeting Link: https://zoom.us/j/96755683197
Meeting Dial-in #: 1-669-900-6833 Meeting ID: 967 5568 3197

General Business: 9.4

Title: Review and possible acceptance of the advice and recommendations provided in Resolution No. 5 from the Sparks Tourism Facility and Revitalization Steering Committee regarding the expenditure of $800,000 in Lodging Tax proceeds for the Victorian Square Infrastructure Improvement Project, Section 4.

Petitioner/Presenter: Sparks Tourism Facility and Revitalization Steering Committee/Armando Ornelas, Assistant Community Services Director

Recommendation: Staff recommends that the City Council consider and accept the advice and recommendations from the Sparks Tourism Facility and Revitalization Steering Committee as provided for in Resolution No. 5.

Financial Impact: No direct financial impact. Acceptance of Resolution No. 5 enables the City Council to approve, through a separate action, expenditure of Lodging Tax proceeds for the purpose specified in the resolution.

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

In 2003, the Nevada Legislature imposed an additional tax at the rate of two and half percent (2.5%) on the gross receipts from the rental of transient lodging in the City of Sparks. The City Council may expend these proceeds after obtaining the “advice and recommendations” of the Sparks Tourism Facility and Revitalization Steering Committee. This agenda item asks the City Council to consider and accept advice and recommendations from the Committee as provided in the attached Resolution No. 5. Acceptance of this resolution would enable the City to expend, through separate future action such as award of a construction contract, up to $800,000 of Lodging Tax proceeds for Section 4 of the Victorian Square Infrastructure Improvement Project.

Background:

In 2003, the Nevada Legislature enacted, and the Governor signed into law, Assembly Bill 205. This legislation, subsequently codified in Chapter 432, Statutes of Nevada, Sections 6.6 to 6.9, imposed an additional tax at the rate of two and half percent (2.5%) on the gross receipts from the rental of transient lodging in the City of Sparks (Lodging Tax). The Lodging Tax is paid to the Reno-Sparks Convention and Visitors Authority, which distributes a portion of the proceeds to the City Council. The City Council may expend these proceeds after obtaining the “advice and recommendations” of the Sparks Tourism Facility and Revitalization Steering Committee (Committee), which was created by Section 6.8 of Chapter 432.

The Committee is required to develop a master plan that identifies:

Proposed projects or capital improvements in Victorian Square, or that would provide a direct benefit to Victorian Square, that the Committee has determined would be advisable to promote tourism in Washoe County.
Method(s) pursuant to which the proposed projects and capital improvements identified in the plan will be financed.

The Committee first adopted a Master Plan in 2004, amended it in 2008, and amended it again in 2016. The 2016 update identifies purposes and projects for which Lodging Tax proceeds may be used, including the Victorian Square Infrastructure Improvement Project. This project involves capital improvements for rehabilitation of the streetscape along: (a) Victorian Avenue between 15th Street and Pyramid Way; (b) Avenue of the Oaks between 11th and 14th Streets; (c) the areas adjacent to the north-south street couplet between Victorian Avenue and Avenue of the Oaks; (d) 13th Street between Avenue of the Oaks and Victorian Plaza Circle; and (e) the section of Victorian Square Plaza directly in front of the movie theater. The area for this project is defined in Exhibit 1 to this Master Plan.

The Victorian Square Infrastructure Improvement Project is being undertaken in sections as identified in Exhibit 1 and as funding is recommended by the Committee and approved by the City Council. The project does not involve wholesale replacements, but rather, repairs or replacements, on as needed basis, of: concrete surfaces, pavers, curbs, kiosks, street furniture like benches, planters, bollards, fencing, and trees. The order in which sections are undertaken is determined on a year-to-year basis as these improvements need to be coordinated with, and be sensitive to the timing of, development and improvements on adjacent private property. To date, the majority of Section 1 (excluding the south side of Victorian Avenue) and the south side of Victorian Avenue in Sections 2 and 3 have been completed.

Analysis:

On November 18, 2020, the Committee considered and unanimously approved Resolution No. 5 (attached), which formally advises and recommends to the City Council that it expend up to $800,000 of Lodging Tax proceeds for Section 4 of the Victorian Square Infrastructure Improvement Project. For the November 18, 2020 meeting of the Committee, its membership was comprised of:

Charlene Bybee, Sparks City Council, Chair
Mark Sterbens, General Manager, Nugget Casino Resort, Vice Chair
Ed Lawson, Mayor, City of Sparks
Jennifer Cunningham, Executive Director of Marketing, RSCVA
Shannon Keel, General Manager, Grand Sierra Resort

As discussed in the Background section above, the Committee’s Victorian Square Master Plan identifies the Victorian Square Infrastructure Improvement Project as appropriate for the use of Lodging Tax proceeds. In reaching its decision to adopt Resolution No. 5, the Committee reviewed and considered:

THe Victorian Square Master Plan;
A staff report prepared in support of Resolution No. 5;
The location of the proposed Section 4 improvements; and
A civil engineer’s estimate of the project cost of $792,380, inclusive of a $50,000 force account.

These supporting materials are provided as exhibits to Resolution No. 5.

The City’s Victorian Square Lodging Tax fund had an unaudited ending fund balance at the end of fiscal year 2020 (June 30, 2020) of $4,838,018. The City’s current commitments for use of Lodging Tax proceeds total approximately $944,000, primarily for public art, three remaining annual payments to the Nugget Casino Resort for construction of the Nugget Events Center, and four remaining annual payments to Syufy Enterprises for renovation of the movie theater facility for Galaxy Theatres. The City thus has the financial capacity to not only expend $800,000 for Section 4 of the Victorian Square Infrastructure Improvement Project but to also fund other projects as they arise, subject to Committee and City Council approvals.

City Council acceptance of the Committee’s advice and recommendations, as provided for in Resolution No. 5, enables the City to expend, through a separate action at a future City Council meeting, up to $800,000 of Lodging Tax proceeds for Section 4 of the Victorian Square Infrastructure Improvement Project. The separate action is expected to take the form of the City Council's award of a public works construction contract for the Section 4 improvements in March or April of this year.

Alternatives:

City Council can accept Resolution No. 5.
City Council can reject Resolution No. 5.
City Council can ask the Committee to reconsider or revise their recommendations.

Recommended Motion:

I move to accept the advice and recommendations provided in Resolution No. 5 from the Sparks Tourism Facility and Revitalization Steering Committee regarding the expenditure of $800,000 in Lodging Tax proceeds for the Victorian Square Infrastructure Improvement Project, Section 4.

Attached Files:

01 - STFRS Resolution No. 5.pdf

02 - Supporting Exhibits Resolution No. 5.pdf

Item 9.4 Presentation.pdf

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