City officials questioned Thursday whether paying $200,000 to improve roads around the new Wal-Mart Supercenter development in north Carson City was a transportation project or an economic incentive for the retail giant.
Supervisors agreed to pay the bill using gas-tax funds, but the Regional Transportation Commission will have the final say next week.
"We believe, in the RTC, this is an economic development incentive package," said Supervisor Richard Staub, also chairman of the transportation commission.
Staub said the commission will consider asking for the money to be paid back from future sales-tax revenue generated by the project.
"We believe that we should be entitled to get this money back, after a period of time, out of what this is essentially for - which is economic incentive."
Transportation commissioners will meet Wednesday to make a decision.
Mayor Ray Masayko said he agreed the matter should have first been decided by the transportation commission, but approved using the gas-tax funds for improving public roads and access.
"From a policy standpoint, the use of gas-tax capital dollars is probably very appropriate on this project," Masayko said. "It appears to be the right use of funds."
Carson City was asked to pitch in the money as part of an agreement with local land owners and developers of the retail site. The total price to accommodate the extra traffic visiting the new 200,000-square-foot store and development at the Hot Springs Road and East College Parkway area is expected to reach $1.2 million.
Improvements include widening College Parkway to accommodate dual left-turn lanes at Roop Street and College, and moving the traffic light at the intersection of Hot Springs Road and Roop Street 150 feet south along Roop Street to allow traffic to drive directly into the center.
State freeway project contractors already had planned to widen East College Parkway, but not as wide as the city will need. The contractor, Ames Construction, will build the improvements and expects to start in June or the beginning of July.
City transportation manager John Flansberg said the city had already expected to pay about $135,000 to the property owner, Al Bernhard, for land to be used as a multi-use path as part of the freeway project.
Instead, the city will pay $200,000 in the agreement for fixing the roads. The agreement is with Wal-Mart Real Estate Business Trust, Al Bernhard and Lenore Bernhard, Shaheen Business Parks and G&D Stokes Co.
Wal-Mart expects to break ground at the 26-acre site this summer and take from nine to 12 months to complete the store, allowing it to open in spring 2005. The store will operate 24 hours a day and offer 36 general-merchandise departments and a full-service grocery.
Company officials predict it will generate at least $500,000 in retail tax revenue for the city each year.
Contact Jill Lufrano at jlufrano@nevadaappeal.com or 881-1217.
