Sparks Redevelopment Agency approves $10 million land purchase for possible future city hall

The Sparks Redevelopment Agency on Aug. 25 approved a purchase and sale agreement to acquire approximately 7.8 acres at 650 Marina Gateway Drive for $10,000,000 from Oakmont Properties Azure LLC. Jim Rundle, the city’s community services director, presented staff findings that the parcel lies within Redevelopment Area No. 2 and that redevelopment funds may be used for land acquisition and other plan‑aligned public facilities per NRS 279 and NRS 279.47.

Rundle reviewed recent due diligence — geotechnical, environmental and title work — and staff’s market‑value analysis. Jeff Kronk, the agency chief financial officer, said the agency has about $30.7 million in unrestricted RDA‑2 funds at fiscal‑year end and estimated an additional $25–30 million of future increment could accrue before the area sunsets in June 2029. Tom Fennell of Dixon Commercial Group described the valuation approach (price per potential unit) and said the negotiated $10 million purchase price was below his market benchmark of about $35,000 per door in comparable entitlements.

Agency members asked how sale proceeds of existing city parcels would be treated (those proceeds are general‑fund assets, staff said) and whether unspent RDA funds could be carried forward if the redevelopment area sunsets; staff explained projects sometimes encumber funds across fiscal years and that the redevelopment agency and plan persist even if tax increment collection ceases.

Agency member Vanderwell moved to approve the purchase and sale agreement; Agency member Bybee seconded. The motion passed unanimously for members present. Agency staff said the acquisition would not require general‑fund subsidy or additional agency debt and that the parcel could later be considered for civic development, sale or other uses consistent with the redevelopment plan.