SB 402 — Provides for the creation of restoration improvement districts for building restoration projects. (BDR 22-332)

EXEMPT (Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT S.B.

402–SENATOR402–SENATORS FLORESF MLORES ARCH; 17, 2025 ____________ JOINTS PONSORS :

ASSEMBLYMEMBERSD WOÑATE ATTS, TONE AND DELT ONGAYLOR ____________M ReferredARCH to17, Committee2025 on____________ GovernmentJOINT AffairsSPONSORS SUMMARY—Provides: for the creation of restoration improvement districts for building restoration projects.

ASSEMBLYMEMBERS W ATTS , DELONG ;

D ICKMAN , RAY , GURR AND O’N EILL ____________ Referred to Committee on Government Affairs SUMMARY—Provides for the creation of restoration improvement districts for building restoration projects.

authorizing under certain circumstances the governing body of a county or city to create a restoration improvement district for the purpose of a project to restore certain buildings that are at least 50 years of age;

Section 3 of this bill defines the criteria for a project to qualify as a county or city which creates a restoration improvement district is authorized tofto: a pledge a portion of the property taxes collected in the district during a fiscal year.

Section(1) 8adopt ofan thisordinance billcreating providesa thatrestoration the amount of thea propertyimprovement taxesdistrict, pledgedsubject is equal to the property tax revenue, excluding certain propertyrestrictions taxconcerning rates, collected in the districtareas inthat excessmay ofbe theincluded property tax revenue collected in the districtdistrict; before the pursuant to section 7 from certain limitations on the amount of revenue that a local government is authorized to collect from property taxes.

Sectionand 10(2) ofpledge thisa billportion -of *SB402*certain –taxes 2on –real providesproperty thatcollected suchin moneythe woulddistrict beduring pledgeda tofiscal theyear, developerexcept ofthat thesuch projecta forpledge certainmay costsnot of- the*SB402_R1* project– pursuant2 to– aninclude agreementtaxes enteredon intoreal byproperty thelevied countyby or performedfor on a project after the effectivebenefit date of an ordinance creating a district,public pursuantbody toif athe contractgoverning forbody construction of thethat project,public isbody subjectelects, towithin thea prevailingcertain wageperiod, requirementsnot setto forthinclude such taxes in existingthe law.pledge.

SectionsSection 3-68 of this bill defineprovides termsthat for the purposesamount of thisthe bill,rate andlevied by a public body that has elected pursuant to section 27 not to includex such rates in the pledge and certain other property tax rates, collected in the district in excess of thisthe billproperty specifiestax revenue collected in the applicabilitydistrict before the creation of thosethe definitions.district.

THESections PEOPLE9 OFand THE12 STATEof OFthis NEVADA,bill REPRESENTEDexclude INa SENATEdistrict ANDcreated ASSEMBLY,pursuant DOto ENACTsection AS7 FOLLOWS:from certain limitations on the amount of revenue that a local government such money would be pledged to the developer of the project for certain costs of the project pursuant to an agreement entered into by the county or city in which the project is located.

Section 11 of this bill provides that work performed on a project after the effective date of an ordinance creating a district, pursuant to a contract for construction of the project, is subject to the prevailing wage requirements set forth and section 2 of this bill specifies the applicability of those definitions.this bill, THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

The building has not been open to the public or had any business operated at the site for at least 10 years;years other than any operations necessary to maintain a privileged license issued by a local government;

- *SB402_R1* – 3 – Sec.

TheExcept as otherwise provided in this section, the governing body of a municipality may:

An - *SB402* – 3 – ordinance adopted pursuant to this paragraph must include the findings of the governing body of the municipality that the project qualifies as a building restoration project.

Upon introduction of an ordinance to create a restoration improvement district pursuant to paragraph (a) of subsection 1, the governing body of the municipality shall provide notice of the introduction of the ordinance to the governing body of each public body, other than the State, by or for the benefit of which any tax is levied upon taxable real property in the district.

Not later than 30 days after the receipt of such notice, the governing body of a public body receiving such a notice may:

(a) Provide comments to the governing body of the municipality introducing the ordinance concerning the creation of the restoration improvement district;

and (b) Adopt a resolution to elect not to include any taxes levied by or for the benefit of the public body in the pledge of the proceeds of taxes levied upon taxable real property in the district, which is proposed to be included in an ordinance adopted pursuant to paragraph (a) of subsection 1.

If, within 30 days after receiving notice pursuant to this subsection the governing body of a public body adopts such a resolution, the governing body must send, by certified mail, notice of the adoption of the resolution to the governing body of the municipality that introduced the ordinance and the governing body of that municipality may not include in the ordinance a pledge of any taxes levied for a fiscal year upon taxable real property in the district each year by or for the benefit of that public body.

- *SB402_R1* – 4 – 3.

The governing body of a municipality shall not adopt an ordinance pursuant to this section or create a restoration improvement district for any building restoration project unless the municipality has entered into a written deed restriction or restrictive covenant with the developer of the project, and such deed restriction or restrictive covenant has been properly and validly recorded with the appropriate county recorder in the county where the building restoration project is located.

The recorded deed restriction or restrictive covenant must restrict the use of the building restoration project or any portion of the building restoration project as follows:

(a) The written deed restriction or restrictive covenant must include the developer of the building restoration project and the municipality as parties to the document.

(b) The written deed restriction or restrictive covenant must prohibit the building restoration project or any portion of the building restoration project from conducting or operating a nonrestricted operation, as defined in NRS 463.0177, on all or any portion of the building restoration project that requires or would require a nonrestricted license, as defined in NRS 463.0177, for a period of at least 20 years from the date of the ordinance or the creation of the district, whichever date is later.

(c) The written deed restriction or restrictive covenant shall be a covenant running with the land for the benefit of the municipality and shall be binding on the successors and assigns of the building restoration project and the municipality.

(d) No party to the written deed restriction or restrictive covenant shall alter, amend, revoke or terminate the deed restriction or restrictive covenant for a period of at least 20 continuous years after the adoption of the ordinance or creation of the district, whichever date is later.

After that time period, any alteration, amendment, revocation or termination of the deed restriction or restrictive covenant shall require the affirmative vote of the governing body of the municipality creating the district.

4.

A restoration improvement district may not include any property that is, at the time the boundaries of the restoration improvement district are created, included within a redevelopment area previously established pursuant to the laws of this State.

5.

A restoration improvement district may not include any parcel or parcels of land, building or group of buildings or spaces that include or will include an establishment, as defined in NRS 463.0148, that holds a nonrestricted gaming license, as defined in NRS 463.0177, whether the license is held by the owner, lessor or lessee of the building restoration project or a third party licensed by the Nevada Gaming Commission to operate gaming devices, as - *SB402_R1* – 5 – defined in NRS 463.0155, or games as defined NRS 463.0152, on a continuous or periodic basis.

6.

When all payments required by any agreement entered into pursuant to section 10 of this act have been paid, all money thereafter received from taxes upon the taxable real property in the restoration improvement district must - *SB402* – 4 – be paid into the funds of the respective taxing agencies as taxes on all other real property are paid.

(a) To produce revenue in an amount sufficient to make annual repayments of the principal of, and the interest on, any - *SB402_R1* – 6 – bonded indebtedness that was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the debt service fund of that taxing agency.

(e) For which the governing body of the taxing agency has adopted a resolution pursuant to paragraph (b) of subsection 2 of section 7 of this act electing not to pledge the taxes levied by the taxing agency, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.

Except as otherwise provided in this section, if the governing body of a municipality adopts an ordinance pursuant to section 7 of this act, the municipality may enter into an agreement with the developer of the building restoration project for the cost of improving, rehabilitating, repairing, equipping, maintaining or operating, or any combination thereof, the project, which may contain such terms as are determined to be desirable by the governing body of the municipality, including the payment of reasonable interest and other financing costs for the - *SB402* – 5 – project.

Any such reimbursements may be secured by a pledge of, and be payable from, any money pledged pursuant to section 7 of - *SB402_R1* – 7 – this act and received with respect to the district.

- *SB402* – 6 – Sec.