It’s official: Diamond Peak project under way

Trustees adopt proposals at Wednesday board meeting

Prior to Wednesday’s Incline Village General Improvement District Board of Trustees meeting, trustees and district staff trekked up to 1210 Ski Way to unofficially kick off the two-phased Diamond Peak Renovation Project.

Later in the day, the trustees unanimously made it official.

In 5-0 votes, trustees during Wednesday’s four-hour board meeting adopted a pair of recommendations related to the project, first approving the next phase of the district’s medium-term bond financing plan to borrow the $7.5 million it estimates the entire project to cost.

The board also approved about $628,000 for best management practices for the project.

Those BMPs are part of project plans for phase one, which also includes renovation of the Base Lodge. Preliminary work on phase one began Tuesday on the gutted lodge, said district engineer Brad Johnson, and with Wednesday’s approvals, construction on the BMPs also can begin, considering Thursday was the opening of the 2008 TRPA grading season, making it OK to dig in the ground.

Prior to the approvals, per Nevada Revised Statute, a public hearing took place regarding the medium-term bond financing plan.

The hearing served as a final chance for residents to voice thoughts about the proposed borrowing idea, which plans to implement a $110-per parcel increase in the district’s recreation fee for the next 10 years to pay off the debt.

“I think we should be allowed to vote on this, because some of us don’t use the facilities, whether physically or we just can’t afford it,” said Incline resident Rosina Cuadros. “It’s always a loser, and I’m opposed to this. It’s getting as bad as Washoe County.”

Other residents said the borrowing plan is necessary because the renovation to the resort is necessary and past due.

“We need to improve it because we need to make more money,” said Incline resident Don Epstein. “If we don’t do it, then the value of that ski hill will go down, compared to others.”

The borrowing plan, which IVGID Director of Finance, Accounting and Information Technology Ramona Cruz said should be complete as early as June and no later than early July, is to authorize bonding of $7.5 million to pay for the following construction this year and next: Phase One ($3.7 million), TRPA BMPs ($650,000), snowmaking for the ‘08-‘09 ski season ($1.1 million) and Phase Two — construction of a new Child Ski Center and ticketing booths ($2 million).

With an anticipated 3.4 to 3.7 percent interest rate associated with the borrowing, Cruz estimates the district’s annual debt service to not be greater than $915,000 over the next 10 years, which the district feels is the proper time gap to pay off the loan.

To pay back the money, it’s IVGID’s aim to raise the district’s recreation fee by about $110 for every parcel owner, to take place over the next 10 fiscal years, beginning with the 2008-2009 fiscal year, which begins July 1.

“I’m surprised you want to put this kind of money into a place that’s always been a loser,” said Incline resident Bob Sendall. “But if you do make this capital investment, you certainly should use bonds.”

Prior to Wednesday’s meeting, IVGID General Manager Bill Horn said preliminary budget talks have the recreation fee raising by $50 for the ‘08-‘09 fiscal year (up to $760 for residents with beach access; $605 for others), a figure he said takes into account the $110-per parcel increase.

None of those figures are final numbers, however, as the IVGID Board will make final decisions on the entire 2008-2009 budget by the May 15 special IVGID budget meeting.

“We’re already rebuilding the lodge ... a bond is the only thing that makes sense,” said Incline resident Ed Gurowitz.

Phase one of the project is expected to be finished by Sept. 15, the end of the TRPA grading season. Phase two is expected to take place and finish during the 2009 grading season.