(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 407–Assemblymen Claborn,
Koivisto, Collins, McClain and Oceguera

 

March 16, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing development projects on which prevailing wage must be paid. (BDR 22‑1196)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to community redevelopment; revising the provisions governing development projects on which the prevailing wage must be paid; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. NRS 279.500 is hereby amended to read as follows:

1-2    279.500  1.  The provisions of NRS 338.010 to 338.090, inclusive,

1-3  apply to any contract for new construction, repair or reconstruction which

1-4  is awarded on or after October 1, 1991, by an agency for work to be done

1-5  in a project.

1-6    2.  If an agency provides property for development at less than the fair

1-7  market value of the property, or provides financial incentives to the

1-8  developer with a value of more than $100,000, the agency must [provide in

1-9  the] enter into a written agreement with the developer which must provide

1-10  that the development project is subject to the provisions of NRS 338.010 to

1-11  338.090, inclusive, to the same extent as if the agency had awarded the

1-12  contract for the project. This subsection applies only to the project covered

1-13  by the agreement between the agency and the developer. This subsection

1-14  does not apply to future development of the property unless additional

1-15  financial incentives with a value of more than $100,000 are provided to the

1-16  developer.

1-17    3.  The fair market value of property for development which is

1-18  provided to a developer pursuant to subsection 2 must be determined by a

1-19  person who is certified as a general appraiser pursuant to chapter 645C

1-20  of NRS using generally accepted appraisal standards, principles and

1-21  procedures. The appraisal must be performed not more than 12 months

2-1  before the date on which the developer and the agency enter into an

2-2  agreement pursuant to subsection 2. The fair market value of such

2-3  property must reflect any costs associated with the preparation of the

2-4  property for development which were incurred by the agency.

2-5    4.  A financial incentive must be included in the calculation of the

2-6  value of financial incentives provided to a developer prescribed in

2-7  subsection 2 if the agreement between the agency and the developer

2-8  pursuant to subsection 2 did not provide for the recovery of the financial

2-9  incentive and:

2-10    (a) The developer or any partner, director or officer of the developer

2-11  acted in a capacity to encourage or influence the agency to provide the

2-12  financial incentive.

2-13    (b) The financial incentive was a gift, grant, donation or loan.

2-14    (c) The financial incentive was not a gift, grant, donation or loan and

2-15  the agency incurred the costs for the financial incentive within the 60

2-16  months immediately preceding the date on which the agency and the

2-17  developer entered into the agreement.

2-18    5.  An agency shall not:

2-19    (a) Divide a project into separate portions;

2-20    (b) Divide the financial incentives provided to a developer; or

2-21    (c) Provide money or property to a different public body,

2-22  to evade the provisions of this section.

2-23    6.  As used in this section:

2-24    (a) “Financial incentive” includes, without limitation, gifts, grants,

2-25  donations, loans and the costs incurred by the agency for:

2-26      (1) Assembling real property into parcels suitable for development.

2-27      (2) Developing property pursuant to NRS 279.474 or 279.486.

2-28      (3) Exercising the power of eminent domain.

2-29      (4) Relocating facilities for public utilities and other infrastructure.

2-30      (5) Making improvements to infrastructure that would be required

2-31  for the approval of an application for a permit to develop property.

2-32    (b) “Future development” does not include improvements made for

2-33  the first tenant of a project, unless such improvements were made more

2-34  than 60 months after the development was completed.

2-35    (c) “Infrastructure” has the meaning ascribed to it in NRS 278.02535.

 

2-36  H