Clark County approves $44 million to renovate fairgrounds

Plans to renovate the Clark County Event Center at the Fairgrounds will move forward after the county council authorized $44 million in limited tax general obligation bonds to finance the work.

The council previously approved moving forward with $31 million in financing for the renovation work in April. The additional costs approved last week relate to work at the back end of the project.

“When we brought this to you before, we did not have the construction costs for the 2030 to 2032 portion,” Michelle Schuster, director of internal services, told the council.

The additional construction costs are estimated at $12 million, along with $1 million for bond issuance costs, bringing the total amount of financing to $44 million.

The first round of financing — estimated at $30.9 million — will happen in the fall, with the remaining $12 million, not including bond costs, financed by the end of 2029.

A breakdown of the costs shows about $4.9 million going to architectural and engineering work and $37.9 million paying for construction over the two financing rounds.

Projects to be financed include parking upgrades to meet Americans with Disabilities Act requirements, roadwork in parking lots A and B, a covered warm-up arena, a covered rental pavilion, a food court and a marquee sign at the Northwest 179th Street.

To identify the most immediate needs, staff looked at the age of the existing facilities, the face of the event center, how people, animals and traffic enter and exit the site, and the food and beverage needs of the event center and the Clark County Fair.

The fairgrounds concession stands, which are outdoors and lack access to water and electric service, are only used during the 10 days of the fair.

Adding a covered pavilion with permanent food cart spaces, additional seating and a kitchen is expected to encourage year-round use.

The bonds will be financed over a 30-year term. Amira Ajami, finance and investment manager for the treasurer’s office, said the standard term is 20 years unless there are compelling factors.

“One of the main advantages of doing a 30-year is really maximizing the sales tax credit that we received from the state,” she told the council. “That will allow us to collect that sales tax credit through 2058.”

Starting in 2026, annual debt service payments will be about $1.9 million, increasing to $2.7 million in 2029. If the bonds were issued over a 20-year term, payments would be about $2.3 million in 2026, increasing to $3.3 million in 2029.

Annual debt payments will be made from the exhibit hall fund, with the public facility district sales tax credit as the repayment source.

“The county does have the option to refinance at a future date if rates lower,” Ajami said. “I know right now interest rates are a bit volatile. … We are closely watching that and monitoring that and working with our financial adviser.”