AIG may get $11M for mall
May 3, 2005
Developer AIG Baker could get $11 million from Douglas County’s Redevelopment Agency to be used to purchase land for a retail development in north Douglas County, according to County Manager Dan Holler.
County commissioners could approve the contract at their Thursday meeting.
Known as Riverwood, the mall that AIG is proposing east of Highway 395 and south of Topsy Lane includes more than 800,000 square feet of mixed-use development. But the contract between AIG and the redevelopment district includes just 25,000 square feet of retail space on 4.67 acres.
AIG may elect to develop property adjacent or near the latter site at their own discretion, but no incentives are promised or provided in exchange for that development, the contract said.
The deal would provide AIG the financial boost it needs to develop the property and limit redevelopment’s liability with respect to development, Holler said.
“Economically, it wouldn’t work for AIG to build the infrastructure for one small parcel,” he said. “And we won’t be investing any money in the project until they have their certificate of occupancy.”
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Under the terms of the agreement, the redevelopment district will make an initial payment of $500,000 within 90 days after the issuance of the certificate of occupancy.
Yearly payments will be made over 15 years until the debt is paid.
“This agreement means a lot less risk for Douglas County,” Holler said. “If we give them $11 million and no stores are built, we’d still have the debt payment without any guaranteed revenue.”
“This way, a small part of the development is guaranteed,” he said.
The annual minimum payment for the first three years is set at $400,000. The next five years will cost the district $750,000 a year, then increase to $800,000 a year.
Some Douglas County residents argue the prime commercial property would have developed without committing redevelopment dollars.
“Why not let this project fly on its own?” asked Lila Lane resident Jerry Vaccarro at a previous meeting. “(Commissioner) Jacques Etchegoyhen said this is the hottest real estate in Northern Nevada. Why does the commission feel it has to give even $5 to develop the property?”
When fully developed, the commercial area could bring roughly $750,000 to Douglas County coffers for everything from the libraries and improvement districts to the general fund when the development reaches full build-out, Holler said.
Plans for the first phase include 400,000 square feet of retail space to be anchored by a major department store with a multiplex theater and a collection of national, regional and local retailers and restaurants.
A national firm based in Birmingham, Ala., AIG Baker primarily focuses on building retail space. The company has developed more than 20 million square feet of commercial retail space 20 states, according to its Web site.
n Contact reporter Susie Vasquez at email@example.com or 782-5121, ext. 211.
If you go
What: Douglas County Commissioners’ meeting
When: 1 p.m. Thursday
Where: Courtroom of the Old Douglas County Courthouse, 1616 Eighth St., Minden