Provides for the creation of restoration improvement districts for building restoration projects. (BDR 22-332)
SB402 authorizes counties and cities in Nevada to create a new type of special district, called a restoration improvement district, for qualifying building restoration projects. A project must involve improving, rehabilitating, repairing, equipping, maintaining, and operating a building and surrounding site where the original structure is at least 50 years old, has been largely inactive for at least 10 years, and will be restored in a way consistent with its original character. The district boundaries must match the project area, and the local government must make formal findings that the project qualifies.
The bill allows the municipality to pledge the growth in property tax revenue generated within the district above a pre-district baseline to help pay project costs. Those pledged revenues can be used under an agreement with the developer to reimburse restoration-related expenses, including reasonable financing costs, but the agreement cannot be backed by the municipality’s general fund or general taxing power. The bill also requires a recorded deed restriction or restrictive covenant limiting certain gaming uses for at least 20 years, bars districts from being placed in existing redevelopment areas or on properties with nonrestricted gaming establishments, and requires prevailing wage rules to apply to construction work performed after the district is created.
SB402 would add a new chapter to Nevada law governing taxation and local redevelopment tools, giving counties and cities authority to create restoration improvement districts and divert incremental property tax revenue within those districts to support historic building restoration projects. It also exempts these districts from certain local government property-tax revenue limits, modifies how ad valorem revenue is calculated for them, and imposes contract, financing, and land-use restrictions tied to the district and project. The bill affects municipalities, developers, property owners in the district, and public bodies with taxing authority over the area, while also triggering prevailing wage requirements for covered construction work.
The bill appears generally supportive of preservation-oriented redevelopment and public-private investment in older buildings, with the text structured to encourage restoration of long-vacant structures while protecting public interests through tax, land-use, and labor safeguards. No committee transcripts or recorded votes were provided, so there is no documented floor or committee sentiment to assess beyond the bill’s design and stated purpose.
The main points of potential contention are the use of property tax increment financing, the diversion of tax revenue away from local taxing entities, and the restrictions placed on future use of the restored property. Public bodies whose taxes would be pledged may opt out, indicating possible concern about revenue loss. Additional friction may arise from the 20-year deed restriction limiting nonrestricted gaming operations, the exclusion of projects in existing redevelopment areas, and the application of prevailing wage rules, which could increase project costs for developers and contractors.