Redevelopment is responsible for developing enduring public/private partnerships that will: increase economic development, vitality and leveraged resources; create or maintain services and facilities to support and attract new businesses, and retain or expand existing businesses; facilitate appropriate housing densities through research, policies, financial programs and standards; and create marketing initiatives to promote opportunities and activities within redevelopment areas to primary markets to bring visitors to support these efforts.
In addition to learning the ins and outs of revolving loan funds and new avenues for attaining financing for our developers to complete redevelopment projects, RAN worked tirelessly to create the Small Business Loan Fund. Nevada Revised Statute 279.700 requires that every redevelopment agency in the State of Nevada create a loan fund to be used to make loans to locate or relocate a business of not more than 25 employees to a redevelopment area or expand or improve an existing business in a redevelopment area. The loans may be made at or below market rate for a term not to exceed five years. Each Agency is to develop policies and procedures for the application, eligibility, due diligence, collateral and loan process. For fiscal years 2014 – 2017, each Agency must submit a written report to the Legislative Counsel Bureau on the loan activity by November 30 for the previous fiscal year.
The Redevelopment Association of Nevada (RAN) led the charge in developing the policies, procedures, credit release, application and forms for reporting the annual information. Every Agency has, or will adopt the policies, procedures, credit release, application and reporting form as drafted by RAN or with changes that will reflect the need of the local environment and political guidance. During the 2013 legislative session in which this requirement was passed, due to concerns from several Agencies related to significant reductions in tax increment revenue as a result of the economic downturn, Assembly Speaker Marilyn Kirkpatrick stated that while each Agency must adopt a loan program, it may fund it with just $1. Therefore, the program may not be fully implemented in all redevelopment areas within the state.
In addition to these triumphs collectively, Nevada’s Redevelopment Agencies are contributing to the state’s economic recovery with projects that are providing fiscal and economic impacts as well as jobs. According to the May 16, 2014 article in the Las Vegas Review Journal, “The state added 42,700 private-sector jobs in the first four months of 2014, up 4.3 percent from the same period in 2013, the employment department reported. You have to go back to the state’s headiest bubble days of 2006 to find private job growth that strong. Overall, the job base gained 3.8 percent year-over-year in April, good for No. 2 in the nation, behind North Dakota.” As tax increment improves, Agencies, through public-private partnerships, will have the ability to financially assist additional projects continuing to have positive impacts on our economy.