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Project Profile: City of Las Vegas Special Improvement District No. 610 (Skye Canyon Phase 3)

City of Las Vegas Special Improvement District No. 610 (Skye Canyon Phase 3) - Las Vegas, Nevada

 

Location

Las Vegas, Nevada

Project Sponsor / Borrower

City of Las Vegas

Program Areas

Project FinanceValue Capture

Mode

Local Road

Description

The City of Las Vegas will issue Special Improvement District Bonds to finance local street improvement projects, a storm sewer project, a sanitary sewer project, drainage projects, and a water project in Special Improvement District No. 610, which is a 267-acre site that will form Phase 3 of the Skye Canyon master planned community in Northwest Las Vegas.

The Special Improvement District Bonds are being issued by the City of Las Vegas pursuant to the Nevada Consolidated Local Improvements Law, as amended, Chapter 271 and a Trust Indenture dated December 1, 2018 between the City and The Bank of New York Mellon Trust Company, N.A.

The improvements will be designed and constructed by a private developer, KAG Property LLC, and then acquired by the City of Las Vegas when they are complete using the bond proceeds.

The developer will prepare the property within the district for residential development. This includes installing the backbone infrastructure. The developer then expects to sell large tracts of land to merchant builders who will be responsible for constructing homes and other buildings within their respective developments. It is expected that 233 acres of land will be sold to merchant builders in 11 separate transactions planned to close in the spring and summer of 2019. The remaining 34 acres is comprised of parks, streets and non-accessible areas. Plans call for 1,282 dwelling units be constructed in the developable land within the District.

Cost

Total cost of backbone infrastructure - $67.5 million

  • Costs eligible for reimbursement from bond proceeds - $11.3 million
    • 15 percent of the cost associated with a detention basin
    • 35 percent of a water reservoir
    • 85 percent of a second detention basin
    • Street improvements, which include grading, paving, curbs, gutters, storm drains, and water and sewer mains.
Funding Sources

Special Improvement District Bonds - $12.5 million

Developer funding - $55 million

Project Delivery / Contract Method

NA

Private Partner

KAG Property LLC (an affiliate of the Olympia Companies' development group)

Project Advisors / Consultants

Sherman & Howard LLC - Bond Counsel

The Bank of New York Mellon Trust Company, N.A. - Trustee

Zions Public Finance - Financial Advisor

Holtz Valuation, Inc. - Appraiser

RCG Economics LLC - Market Absorption Consultant

Lenders

Bondholders

Duration / Status

The Developer expects to complete the installation of the necessary backbone infrastructure by the end of 2020.

Financial Status

Financial close expected in the first half of 2019. Interest on the bonds is payable semiannually on June 1st and December 1st commencing June 1, 2019.

Innovations
  • The City of Las Vegas is issue Special Improvement District Bonds to compensate the developer of a new 267-acre community for a portion of the cost of local street, sewer, drainage, and water improvements
Related Links / Articles

Skye Canyon

Olympia Companies

Contacts

Mr. Robert J. Folger
Financial Analyst
Department of Finance
City of Las Vegas
Tel: (702) 633-1460

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