RTC Board Workshop Regional Road

Impact Fee ProgramSeptember 7, 2012

RRIF Program Overview History

RTC Board Workshop May 2011Open Discussion with Stakeholders

RFP Process Jun-Sep 2011Intent to Award Aug 2011

Execute PSA Sep 2011

RRIF TAC Meetings Oct – May 2012

RTC Board Workshop Apr 2012Presentation by TischlerBise

Draft Final Report to RRIF TAC Jun 2012

Draft Final Report to RTC Board Jul 2012

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RRIF Program Overview ReportTischlerBise - Scope of Work

Land use assumptions Methodology Geographic service area and benefit districts Development potential Economic analysis Credit program Options for transit oriented development Ordinances, agreements and General

Administrative Manual3

RRIF Program Overview ReportTischlerBise – General Findings

RRIF Program generated revenue (1996-2012) $ 83 Million – Impact Fee collections$187 Million – Developer built projects (actual costs)$270 Million - Total Capacity Improvements through RRIF Program

Changes in collections over time Fee collections: $10 million (2005) / $836,000 (2011) Credit issuances for new developer built projects: $37 million (2007) / $1.4 million (2010)

Economic downturn has had significant impact on the program Reduced development = Reduced collections Abundance of credits available = Increased use of credits in payment of fees

Impacts of adopting less than 100% of maximum supportable fee Collections not providing funds for future improvements Credits issued that were based on a reduced rate resulted in more credits issued

Credit program Allows development to choose which CIP projects to construct

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Roadway Improvements 1996-2012

Roadway Improvements1996-2012

$ 155 M RTC Fuel Tax/Federally Funded Projects$ 83 M RRIF Funded projects $ 187 M Developer Funded projects$ 425 M Total RTC Capacity Projects

$ 65 M Local Match for State built Projects

$ 342 M Pavement Preservation Projects $ 832 M Total

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RRIF Program Overview ReportTischlerBise - Recommendations

At the April 20th Workshop, TischlerBise identified a series of recommended improvements:

Update Demographic Data (underway with RTP process) Consolidate land uses in the current fee structure Index the impact fees annually between updates Recommended changes to the CIP:

Prioritize the list of projects in the CIP Re-define what are eligible improvements, ie, consider 1st two lanes of

a new road as development level improvements Add cost recovery component

Develop a tiered urban/suburban service areas Change how the impact fee program assesses credits

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Why an Impact Fee Credit Program

NRS 278B.240 - Improvements required as a condition of approval for which impact fees were collected must be credited against those impact fees

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Existing RRIF Credit Program

Used to pay impact fees in lieu of cash Represent dollar value of developer built projects

Actual cost/impact fee rate = credits Measured in Vehicle Miles Traveled (VMT) Life span of 20 Years Can be traded on the open market Must be used in the Benefit District they were

earned May be limited to 50% use on projects outside the

Original Development of Record8

RRIF Program Overview ReportTischlerBise – Recommendations (cont)

Modify Future Credit Program Eliminate the use of credits outside the

development of record Value credits in dollars in lieu of VMT’s Issue credits based on a prioritized CIP, ie, less

credits for improvements projected in the outer years

Issue credits based on the impact fees due or on the value of improvements listed in the CIP

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Existing Credit Program Issues

Large amount of existing credits Credits being traded on the open market for

less than full value Existing credits being used for payment of

impact fees and little cash coming into the program

Credits approaching expiration dates Economy is still struggling

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Impact Fee Payment History

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19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

Credits Redeemed

Cash Payments

Impa

ct F

ee P

aym

ents

(C

redi

ts a

nd C

ash)

Calendar Year

Credits by Expiring Year

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Year Issued Total Credits Year

ExpiringAutomated

CreditsMissing Books (1)

Total Credits Remaining

% Remaining of Total

1996 32,717.84 2016 5,529.18 1,671.10 7,200.28 0.80%

1997 25,443.75 2017 0.00 3,913.46 3,170.19 0.35%

1998 98,747.14 2018 28,224.34 14,610.87 29,035.98 3.22%

1999 59,589.29 2019 3,191.28 12,887.93 14,689.55 1.63%

2000 65,264.67 2020 19,359.98 6,109.13 19,502.46 2.16%

2001 111,841.08 2021 19,945.89 3,563.29 26,977.94 2.99%

2002 41,618.11 2022 21,688.24 3,633.47 21,688.24 2.40%

2003 187,695.36 2023 83,158.42 206.40 104,764.89 11.61%

2004 186,972.70 2024 136,680.00 13,634.06 141,460.74 15.67%

2005 117,778.05 2025 90,879.12 20,190.81 101,783.74 11.28%

2006 248,426.44 2026 116,192.94 28,451.28 152,460.83 16.89%

2007 284,552.50 2027 228,726.60 0.00 237,773.78 26.34%

2008 27,436.23 2028 11,362.43 0.00 13,301.60 1.47%

2009 36,659.67 2029 27,259.07 0.00 27,259.07 3.02%

2010 6,981.81 2030 1,598.77 0.00 1,598.77 0.18%

Totals 1,531,724.64   793,796.26 108,871.80 902,668.06 100.00%

(1) Credits estimated in Missing Books may include credits already redeemed and/or lost books

Major Impact Fee Credit Holders

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Major Credit Holders Current Credit Balance

% of Total Outstanding

CreditsCurrent Value($217/Credit)

Nevada Tri-Partners 155,338.72 17% $33,708,502.24

Sparks Galleria/Reno Corp Center/Tanamera 78,355.56 9% $17,003,156.52

South Meadows Properties 62,047.99 7% $13,464,413.83

Centex Homes 49,489.46 5% $10,739,212.82

NN Development Corp/Lewis Land Corp 39,362.81 4% $8,541,729.77

Spanish Springs Associates 36,057.18 4% $7,824,408.06

CAV Investments 26,730.87 3% $5,800,598.79

Corona Cyan, LLC 21,815.50 2% $4,733,963.50

SOMERSETT 30,152.92 3% $6,543,183.64

PROLOGIS DEVELOPMENT SERVICES 11,584.63 1% $2,513,864.71

Subtotal 510,935.64 57% $110,873,033.88

Other Credit Holders (300 Various Holders) 391,752.42 43% $85,010,275.14

Total 902,688.06 $195,883,309.02

BANN Buy Back Survey

Certificate HolderCurrent

Balance  (Credits)

Dollar ValueCurrent Balance

Number of Credits Available

for RTC Redemption (Estimate)

Dollar Value of Redeemed Credits

($217/VMT)

BARKER COLEMAN CONSTRUCTION

1,393 $302,283.17    

Barker Homes, Inc. 9,259 $2,009,220.36 9,259 $2,009,220

CENTEX HOMES 48,179 $10,454,843.00    

CENTEX HOMES OF NEVADA 1,310 $284,270.00    

Community Development Group 2,452 $532,094.85 2,452 $532,095

CQ Investment Co. 1,590 $345,053.87 1,590 $345,030

Damonte Ranch Commerce Center, L 22,751 $4,937,014.74    

DBSI Wingfield Village, LLC 3,489 $757,099.98 1,488 $322,896

Development Solutionz, LLC 485 $105,245.00 485 $105,245

Di Loreto Homes 196 $42,629.65    

Di Loreto Homes of Nevada 457 $99,210.23    

Donahue Schriber Reality Group, 3,471 $753,150.58 3,471 $753,151

DOUBLE DIAMOND RANCH L.L.C.* 24,334 $5,280,478.00    

Heritage Bank of Nevada 4,209 $913,353.00 3,490 $757,436

LIFE STYLE HOMES, INC 7,754 $1,682,618.00    

Magnolia South Meadows II, LLC 91 $19,816.44 91 $19,816

Metro Phoenix Bank 7,590 $1,647,030.00 7,590 $1,647,030

Mono County Resorts Inc. 1,781 $386,548.61 1,781 $386,549

Nell J. Redfield Foundation 5,386 $1,168,762.00 5,342 $1,159,244

Nevada Spectrum, LLC 1,064 $230,950.93 532 $115,444

NEVADA TRI PARTNERS, LLC 132,573 $28,768,341.00 20,000 $4,340,000

NN Develop. Corp. & Lewis Land C 25,880 $5,616,033.78 5,000 $1,085,000

RBK Investments LLC 482 $104,672.12 482 $104,594

Reno Corporate Center, LLC 24,163 $5,243,371.00 18,000 $3,906,000

RRW Stonebrook, LLC 464 $100,731.40    

Service 1st Bank of Nevada 16,680 $3,619,560.00 16,680 $3,619,560

Spanish Springs Assoc. LP 36,056 $7,824,152.00 36,056 $7,824,152

Sparks Galleria Investors, LLC 50,688 $10,999,296.00 44,000 $9,548,000

Sparks McCarran, LLC (Wall Stree 84 $18,256.21 84 $18,256

TICO Construction Company, Inc 841 $182,540.40 841 $182,540

Toll Brothers 1,210 $262,520.09    

Toll North Reno, LLC 6,844 $1,485,148.00    

Toll South Reno, LLC 12,980 $2,816,660.00 3,000 $651,000

Washoe County School District 17,067 $3,703,539.00 6,095 $1,322,615

Subtotal 473,256 $102,696,493.41 187,810 $40,754,874

Other Credit Holders

Total Outstanding Credits 902,668 $195,878,969.02    

BANN contacted various credits holders who may be interested in a redemption program

Approximately 188,000 credits were identified to be returned to RTC, representing 21% of the outstanding credits

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Represents $40 million at today’s rate

Discussions to address Existing Credit Program

Leave Program as is – use or lose Extend existing credit expiration dates (IE,

through 2 for 1 exchange program) Allow credits to be used throughout the

Service Area and not limited to the Benefit District

Institute a Buy-Back program (Proposed by the development community)

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Next Steps

Open Public discussion Continued analysis by TMRPA to develop

projected growth by Land Use within various timeframes

Financial analysis by TischlerBise on impacts of a Buy Back program

Further discussion at the September 21st RTC Board Meeting

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