Nevada Briefs - July 2005

Nevada Briefs

Reliant Sells Interest in Boulder City Power Plant

Houston-based Reliant Energy has entered into a definitive agreement to sell its 50 percent interest in El Dorado Energy to Sempra Generation for $132 million. Reliant and Sempra had jointly owned the 480-megawatt, natural gas-fired El Dorado Energy power plant located in Eldorado Valley, about 40 miles southeast of Las Vegas near Boulder City. The transaction, which is subject to approval by the Federal Energy Regulatory Commission, is expected to close in the third quarter of 2005. Reliant Energy is one of the largest independent power producers in the nation. Sempra Generation and Reliant Energy announced their joint partnership to develop El Dorado Energy in 1997, and the plant began producing electricity in May 2000.

TMWA Receives Loan for Water Project

Truckee Meadows Water Authority (TMWA) recently received approval for a $9.3 million low-interest loan to fund its Arsenic Mitigation Project. The loan was provided by the Nevada Drinking Water State Revolving Loan Fund (DWSRF). The interest rate on the loan is expected to be from 3.1 percent to 3.5 percent, compared to 5.0 percent to 5.5 percent for more conventional tax-exempt bond financing. By using loans provided by the DWSRF, TMWA estimates it can save over $2.0 million in interest costs over the life of the 20-year loan. The funds will be used for pipeline and pump station upgrades at 13 water wells, which were necessitated when the Environmental Protection Agency changed federal drinking water standards for arsenic from 10 parts per billion (ppb) to 50 ppb. TMWA expects to be in full compliance with the new standard by January 2006.

Double-Decker Buses to Cruise Las Vegas Strip
The London Transport Corporation recently unveiled the newest form of tourist transportation in Las Vegas – double-decker buses. The red buses will provide scenic charter tours from downtown Las Vegas to the South Strip. Riders will pay $25 for full-day tickets, and will be able to board anywhere along the tour route. The open-air vehicles, which seat 80, were purchased from a British company after they were retired from service in London. Five buses will be hitting the streets of Las Vegas in July, and Raimond Capel, who owns the London Transportation Company, hopes to have at least 10 operating by the end of the summer. The Regional Transportation Commission is planning its own version of double-decker transportation to debut in October, but its buses will be fully enclosed and seat 120.

BankWest and Business Bank Expanding

BankWest of Nevada has begun construction on a 6,500-square-foot, full-service banking facility in the fast-growing Centennial Hills area of northwest Las Vegas. The bank, located at 8533 W. Centennial Parkway, is scheduled to open in the fourth quarter of 2005. BankWest is Nevada’s largest independent bank, with five offices in Clark County and four new offices planned for the near future. The same week BankWest broke ground for its new building, Business Bank of Nevada opened its first full-service branch in North Las Vegas, which also includes a lending center. The 5,500-square-foot facility is located at the Cheyenne Valley Gateway Center, at Cheyenne and Valley near the North Las Vegas Airport. Business Bank, now in its 10th year of operation, has three offices in Southern Nevada, one in Reno, one in Carson City and one in Minden.

Station Casinos Purchases 50 Acres Near Reno

Station Casinos Inc., which owns or has interests in 13 casinos in Southern Nevada, has purchased a 50-acre parcel south of Reno with the intention of developing a locals casino there. Current zoning does not allow gaming on the site, so the company’s first order of business will be to apply for a special-use permit. The parcel, located at the southwest corner of U.S. 395 and Mt. Rose Highway, is adjacent to the Summit Sierra retail mall, a high-end development being built by Alabama-based Bayer Properties. Officials with Bayer Properties said they plan to enhance pedestrian access between the two projects, which are separated by Mt. Rose Highway. In March 2005, Station Casinos purchased a 96-acre parcel nearby, at the intersection of Geiger Grade Road and South Virginia Street.