Curent Updates

• April 13, 2010. Commissioners agreed to an additional 60-day extension of the option agreement with RJB Development, offered at no cost by RJB, to allow citizens more time to form a Special Assessment district within the City of Reno to purchase the former Northgate property. Commissioners still retain an option to purchase an additional two month extension at a cost of $33,000 per month.
• In a letter dated January 6, 2010, RJB Development offered to give the residents, in the vicinity of the now closed Northgate Golf Course, another three months to create a Special Assessment District (SAD) within the City of Reno to purchase the property. The residents now have until April 30, 2010 to obtain the required consent of 67% of the property owners within the proposed SAD boundary. If the SAD is established, those property owners would be assessed a fee over a defined period of time to pay back the bond used to purchase the property. Since the original agreement with RJB Development is with Washoe County, which holds the property title, the Washoe County Commissioners have directed staff to place this extension offer on their January 26, 2010 agenda for consideration. The City of Reno will have the final authority to implement and administer the SAD since the SAD lies wholly within the City of Reno.
• 12.10.09 Northgate Press Release *NEW*
• December 8- County Commission Meeting Staff Report (Item 31)
• December 8- County Commission Meeting Staff Report (Item 30)
• SPECIAL HOMEOWNERS MEETING
• RJB Response to Appraisal
• Option Agreement with RJB Development.
• In late June, Washoe County paid $200,000 toward an option agreement with RJB Development that could potentially lead to the purchase of the Northgate property if certain factors come to pass.
• RJB also has an active previously-signed agreement to sell the property to a developer if the County and RJB are unable to reach agreement on a purchase of the Northgate property.
• An appraisal has just been completed which places the appraised value of the approximately 226 acres at $2,850,000.
• RJB's asking price is $4,500,000.
• Both of the parties have the right to cancel the option agreement by August 24 (RJB) and August 27 (County) if they do not agree on a purchase price. If the option is not canceled by one of the parties by their respective deadline, the purchase price becomes the appraised value of $2,850,000.
• The County and RJB remain in discussions on this matter and as of August 15 RJB has not yet given notice of cancellation, but the appraisal is $1,650,000 less than their asking price. This item is on the agenda for consideration by the Board of County Commissioners on August 25 and RJB's decision to cancel the option agreement would need to be received on August 24th.
• State Question 1 Funding
• If a successful application could be submitted the State Division of Lands that ultimately receives funding from State Question 1 (SQ-1), the grant program could possibly pay for up to ½ of the acquisition costs. The program also requires that any SQ-1 funds be matched on a dollar for dollar basis using local funds (which could include participation from the neighborhood).
• Recent conversations with senior staff at State Lands have resulted in the following understandings:
  • Funding for future rounds of SQ-1 funds has been significantly delayed due to unfavorable financial markets making it difficult to sell the bonds needed to fund SQ-1 projects.
  • State Lands' staff's best guess as to when the next round of funding might take place is the fall of 2010, at the earliest.
  • Even then, it is expected that the amount of funding that is available at that time will be much reduced from previous rounds of funding.
  • A preliminary review of the project to purchase Northgate shows that although it may meet the basic criteria for SQ-1 funding, the project itself would probably not be among the highest priority projects to be considered for funding based on past funding decisions within this process.
• Therefore, based on current information, SQ-1 funding is very uncertain as a source of funds for this project since the option agreement with RJB also requires that the purchase be completed by spring of 2010, well before any potential funding decision and well before we would know if we even have a chance of being funded.
• Washoe County 1 (WC-1) Regional Parks Funding
• There might be up to $1,000,000 in WC-1 funds available to match the State Question 1 funding, but the Board of County Commissioners would have to put this project ahead of other projects that were on the list when the voters approved the measure…so it's certainly not a sure thing.
• Next Steps
• We expect to have a "go/no-go" decision on this possible purchase next week.
• If the purchase price is agreed upon at $2,850,000, County staff will diligently work at the direction of the Board of County Commissioners to seek funding for a portion of the total purchase price.
• Under any scenario, successfully completing the purchase of this property will also require the financial participation of the residents on the neighborhood.
• It is imperative that the neighborhood begin immediately to organizing itself so that there is an agreed plan for raising the required contribution toward the purchase price.
• Reno staff can assist with the creation of a Special Assessment District (SAD) or a Park District approach.
• Funding issues include the purchase of the property, but funds will also be needed to restore it properly to open space (rough guess $200,000 to $500,000) and funding will also be needed to maintain the property on an ongoing basis.
• If the parties do not ultimately agree on a purchase price next week, there are still options available to the neighborhood including the possible consideration of purchasing a portion or all of the property or part of all of the "development rights" to the property directly from RJB. Organizing to do this would also suggest a similar need for the neighborhood to get organized around this issue.
• Washoe County's Current Financial Situation (just a little bit of background)
• General fund cuts of about $100 million over the past 24 to 30 months.
• Regional Parks and Open Space budges has been cut by a total of 56% in the last 2 years.
• The County overall has 500 fewer employees.
• Washoe County's sales tax revenues have declined in 27 of the last 28 months. They are still showing double-digit declines month on month compared to the previous year.
• Property tax revenues are expected to decline by at least 7 to 10% in the next budget year.
• Regional Parks and Open Space construction projects (trailheads, etc.) have been placed on hold because although there may be bond funds to construct them, there is no money for operations and maintenance at this time.

Previous Updates - August 2009

• The appraisal of the Northgate property took a little longer than anticipated, but is expected to be completed early in the week of August 10.
• Once the appraisal has been received, Washoe County staff is planning to meet with RJB Development during the week of August 10, in order to discuss the appraisal and the possible purchase price of the Northgate property as specified in the option agreement approved by the Board of County Commissioners on June 23.
• The Washoe County Regional Parks and Open Space staff will be meeting with senior leadership from the Nevada State Lands Division on August 13th to get a "read" on the possibility of State Question 1 (SQ-1) funding. The intent of the meeting is to be able to determine whether there is any chance whatsoever of getting State funding through that program to pay for a portion of the purchase price of the Northgate property. With the recent soft financial markets, sales of bonds under the SQ-1 program have been significantly delayed potentially delaying projects all around the state.
• Washoe County is scheduling the next Northgate neighborhood meeting for August 18 at 6PM at Somersett HOA Club House. Notices are planned to be mailed on Tuesday, August 11.
• At the neighborhood meeting on August the 18th, the agenda will include starting the meeting with a recap of what's transpired, but the main focus of the meeting clearly needs to be to understand what's involved with creation of a Special Assessment District (SAD) and to start organizing that process within the Northgate community. Without significant participation from the neighborhood, the possible purchase of the Northgate property from RJB development does not appear to be feasible. We will be needing leaders/spokespersons from the neighborhood to carry forward the discussions regarding creation of a SAD or some other approach to finding the additional funding that would be needed for this concept to become a reality.
• Washoe County has been in contact with the City of Reno to make sure that they have a key staff person in attendance at the August 18 neighborhood meeting who would actually be closely advising the homeowners in the neighborhood regarding the actual steps in the process of forming an SAD among the Northgate neighbors.
• Finally, it is anticipated that there will be an item on the agenda for the August 25 meeting of the Board of County Commissioners (BCC) regarding the Northgate property, since the option agreement with RJB Development has an August 27 trigger date. What transpires at the BCC meeting will be heavily dependent on a number of factors including: the outcome of the appraisal; the meeting with RJB Development; the meeting with State Lands Division staff regarding SQ-1 funding; and, of course, the neighborhood meeting and the level of commitment from the Northgate neighborhood.

Previous Updates - July 2009

Washoe County is currently in negotiations with RJB Development for an option agreement relative to the Northgate Golf Course property and the Board of County Commissioners will consider the terms of the agreement at their regularly scheduled meeting on June 23, 2009. On a parallel track, an appraisal of the property will be conducted over the next 45 days. Discussions regarding the potential purchase of the property by the County, available funding sources, and the development of a Special Assessment District (SAD) will continue once the agreement is in places and the appraisal is completed . Prior to that time, you will be able to keep up with all of the current news on this page.

Background

• The Northgate Golf Course was closed by RSCVA at the beginning of 2009.
• By state law, RSCVA cannot own land and therefore Washoe County has held title to the land on behalf of RSCVA.
• When this property was deeded to RSCVA in 1985 for the purpose of constructing the golf course, the original owners (RJB Development) included a reversionary clause that said:
  …NOW, THEREFORE, the Party of the First Part does hereby donate, grant and convey to the Party of the Second Part, all right title and interest in and to that certain real property situated, lying and being in the County of Washoe, State of Nevada, constituting approximately 247.8 acres more particularly described in Exhibit "A" attached hereto and made a part hereof as if set out in full herein, (hereinafter referred to as the Subject Property) so long as the Party of the Second Part uses the Subject Property for an 18-hole championship golf course together with a clubhouse, driving range, and related facilities, and a 9-hole executive golf course, both of which shall be opened to the public, which golf course shall be named "The Northgate Golf Course", and so long as the Party of the Second Part maintains exclusive ownership of the Subject Property.
• By closing the golf course, RSCVA triggered that reversionary clause and RJB has requested that Washoe County deed it back to them in accordance with the original deed.

Washoe County and the City of Reno understand that the neighbors of the course are concerned about what the future of the property will be.

At the Community Forum meetings that were held on March 19 and April 9, Washoe County Commissioners Bonnie Weber and John Breternitz and Reno Councilmember Dave Aiazzi heard testimony from numerous property owners with a number of concerns which are presented below.

• What are the intentions of RJB development related to this property? Attached to the Washoe County staff report for the March 3rd Commission meeting are two letters from John Frankovich who represents RJB Development.
• What does the current zoning allow and what could be built on the property? The property is currently zoned open space by the City of Reno. A series of public hearings and approvals by the City would be required in order for it to be developed as single family housing, for instance. For more information about possible development issues, contact Community Development at 775.334.2063.
• Can the County or City operate it as a golf course? Both the County and the City have closed golf courses because recent studies have shown that there is an excess of public golf holes in the Truckee Meadows. Also, this course has consistently lost approximately $500,000 annually for many years.
• Could it be converted to open space or some sort of park? Many residents liked this option.
• Does the City or County have funds to make the purchase? Washoe County is facing a $47 million budget reduction for FY2009-10 including reductions to the Library and Parks budgets of 36%. At this time there is no available funding to pay the $4.5 million asking price for the property. In addition, there is a cost of converting the golf course to open space along with the ongoing cost of maintaining the open space over the succeeding years.
• Are there grant funding sources available to purchase it as open space? We are exploring the options for grant funding. The only possible source that shows any promise might be funding from the State Question 1 (SQ-1) bonds. Washoe County staff is exploring what those possibilities might be. (This was discussed at the April 21st Commission Meeting- see 'Related Resources' for the staff report and link to a video of the meeting.)
• Are the trustees of the RJB Development Corp willing to donate it for open space? According to legal counsel for the RJB Development Company, the trustees are not in a financial position that would allow donation of this property.
• Could the neighbors organize to somehow assist in raising the money needed to acquire the property? This is a good idea and would probably be a key element of any successful proposal to purchase the property. Perhaps the contributions of the neighboring property owners could be the required match if SQ-1 funds were able to be secured. Establishment of a Special Assessment District (SAD) through the City of Reno is one option for generating funds to match this grant.
• Could individual neighbors purchase pieces of the property that are behind their homes to make their own properties bigger and create a buffer? Another good idea.
• Who should be called with complaints about vandalism or other problems on the property? The best option if there is improper or illegal behavior on the property is to call 334-COPS which is the non-emergency number for the Reno Police Department. If it is an emergency, residents should call 911.
• Who is going to make sure that there isn't a severe fire danger as the summer approaches and the vegetation dries out? This needs to be addressed and staff members will be discussing this.
• Can the clubhouse be converted into a community center? Another good idea.

There were numerous other questions asked during the Community Forum on March 19 and April 9. (see attached meeting summary)

What's Next?

Several actions are anticipated or underway:

• The City of Reno as approved some initial funds, totalling $1,000, toward maintenance of the property in the short term while funding options are pursued. Additional funding will e considered by the Reno City Council upon approval of an option agreement between the County and RJB Development, scheduled for consideration at the June 23, 2009 BCC meeting.
• Washoe County is exploring an application for State Question 1 funding for the property. If successful, funds for 50% of the cost of acquiring the property as permanent open space could possibly be obtained from this grant. In the next several months, firm commitments on where the matching funs would come from would need to be found.
• An appraisal of the property has initiated by Washoe County staff, with completion expected on or about July 24, 2009.
• On June 23, the BCC will consider approval of an option agreement with RJB Development that would buy time for the City, County, and the neighbors to explore options to preserver the property as possible open space.
• Upon completion of the appraisal and once an agreement is reached on the actual purchase price of the property, a date will be selected for a meeting with the City, County and neighbors to begin discussing these options in detail. It is expected that such a meeting would be scheduled in early August.

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