As elsewhere stated, Crystal Bay Development Co. (“CBDC”) sold all of its remaining Incline Village lands to Boise Cascade Corporation of Boise, Idaho¹ (the parent company) on June 4, 1967. “One of (Boise Cascade’s)…major interests (at the time)…was…real estate speculation and recreational land development…Hoping to sell this property to large investors, the company met with little success and was forced to revise its strategy and develop the land(s) itself into residential and recreational areas [hence Boise Cascade Home and Land Corporation (“Boise Cascade”). But]…by 1970…the company’s land development business was in serious trouble, accumulating losses that placed the entire organization in jeopardy.”² On October 12, 1971 the California Attorney General filed an action for fraud against Boise Cascade on behalf of all persons who had purchased residential properties in Boise Cascade’s recreational development at Incline Village, Nevada, seeking civil penalties and exemplary damages on behalf of those purchasers³. Although this case was subsequently settled³, “in an attempt to reverse its losses, Boise Cascade wrote off a significant portion of its real estate holdings and divested its residential housing operation(s), along with other assets judged to be inadequate performers or lying too far outside the company’s core business areas.”²

Meanwhile, and as elsewhere explained, there was an organic push for the District to use its new found powers to acquire facilities for public recreation to construct parks and athletic fields⁴. This push was fueled by the fact Washoe County was conducting a county-wide public recreation study intended to identify possible venues for development. And in December of 1971 this “push” resulted in the creation of a local Incline Village ad hoc Recreation Committee⁵ consisting of thirty (30) concerned citizens⁶. The Committee’s goal was to identify approximately fifty (50) acres in the growing community of Incline Village as a “core recreation” area for possible park acquisition and development⁷. And over the months which followed, the Committee made regular reports on its progress and recommendations to the IVGID Board and the public.

IVGID‘s Acquisition of 57.8 “Core Recreation“ Acres: On or about October 3, 1977, after the Lemer case had worked its way through a good portion of the appeals process, Boise Cascade chose to abandon its Incline Village development and sell approximately 93½ acres of unimproved Incline Village lands to IVGID for a “core recreation area.” The land was bordered by Tahoe Blvd. (Highway 28) to the north, Country Club Drive to the east, Incline Way to the south, and Village Blvd. to the west. Meanwhile, the District was realizing that its “playbook” for funding acquisition of recreational facilities (i.e., the beaches, two (2) golf courses, Bowl Incline and Ski Incline) had worked so well that it could venture even further into the public recreation acquisition and development arena. And barely a year after acquiring Incline Village’s two (2) golf courses, The Chateau, Bowl Incline and Ski Incline (mid-1977), it acquired approximately 57.8 acres for a “core recreation area.”⁸

Approximately 67 of those acres (four separate parcels) were sold by Boise Cascade to Mansel and Patricia Ocheltree so they could donate a portion (two separate “active recreation properties” totaling approximately 31.2 acres) to IVGID in consideration of substantial income tax benefits. And the remaining adjacent approximate “26.6 acres more or less” were sold outright by Boise Cascade to IVGID⁹. Thus on on November 18, 1977 IVGID consummated its purchased of this acreage contemporaneously with the Ocheltrees’ purchase (above described). And the purchase price paid by IVGID was $1.25 million¹⁰. These lands combined (roughly 58 acres⁷) encompassed those underneath today’s Tennis & Pickleball Center, the Washoe County School District’s (“WCSD’s”) middle school, the Ridgeline baseball fields which make up most of Incline Park, the Skateboard Park, the Disc Golf Course, the Mountain Bike Pump Track, the Reno Sparks Convention and Visitor Authority’s (“RSCVA’s) Visitor’s (Welcome) Center on Tahoe Blvd., the Parasol Community Non-Profit Building on Incline Way, and most of the lands underneath today’s Recreation Center.

The Source of Financing For IVGID‘s Purchase of Its Core Recreation Area Properties: On December 8, 1977 the IVGID Board (“the Board”) adopted Resolution No. 1293 which authorized “a temporary Interfund Loan…of $1,250,000 from the (District’s) Project 69-2 Capital Improvement Fund.”¹¹ This loan was supposed to be repaid “no later than December 1, 1978” from what former GM Kermit McMillin explained on September 8, 1977 would either be: short-term financing from a bank; the sale of additional Recreation Revenue Bonds; or, “there was the possibility of Federal or State acquisition monies…from the State Park System wh(ich) administer(s) those funds…(which could) provid(e) 75% of the acquisition costs.” Ultimately, and after rolling over short term temporary financing, payment ended up coming from the issuance of additional Recreation Revenue Bonds known as the Recreation Revenue Bonds of 1981¹². Leaving the District with $2 million of outstanding recreation revenue bonds, maturing November 1, 1999, accruing interest at an unbelievable 11%-13.5%!

Where The Monies Came From to Service/Repay The Recreation Revenue Bonds of 1981: Given

“All of the provisions of (former) Resolution No. 1262, adopted by th(e) Board on July 29, 1976, including without limitation, the pledge of Revenues contained therein and the uses and application of Revenues provided therefor, (expressly)…appl(ied) to the Bonds issued pursuant to…Resolution No. 1413), and for such purposes Resolution No. 1262 (was)…deemed to be a part…of” Resolution No. 1413, “both principal and interest (we)re payable solely from the Net Revenues pledged to the payment (t)hereof…as described and defined in…Resolution No. 1262, as amended.”¹³

And what were those “net revenues pledged?” According to ¶9.03 of Resolution No. 1262, creation of what we know today as the Recreation Facility Fee (“RFF”). And ¶9.34 of Resolution No. 1262 pledged the proceeds thereof (i.e., the RFF), in accordance with NRS 318.197(1) [“the board may fix, and from time to time increase or decrease…rates, tolls or charges…and pledge the revenue for the payment of any indebtedness or special obligations of the district”], as the “revenue (source) for the payment of any indebtedness…of the district.”

So now you know how, when, and why IVGID acquired 57.8 Incline Village acres for its “core recreation area.”

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1. Go to https://www.newenglandskihistory.com/cancelledskiareas/NewHampshire/boisecascade.php.
2. Go to http://www.fundinguniverse.com/company-histories/boise-cascade-corporation-history/.
3. See Lemer v. Boise Cascade, Inc., 107 Cal. App. 3d 1, 4, 165 Cal.Rptr. 555 (1980).
4. Recall that when IVGID sought public recreation powers from the Washoe County Board of Commissioners (“the County Board”), on October 25, 1965 its Board representative, Harold Tiller, expressly represented that if granted, this new basic power would not be exercised to acquire nor operate any of the many contemplated recreational facilities except pubic parks [see pages 159-160 of the packet of materials prepared by staff in anticipation of the Board’s May 27, 2020 meeting (“the 5/27/2020 Board packet”)] including the beaches. Therefore the acquisition of public parks was in line with what had been expressly represented to the County Board and the public.
5. At the IVGID Board’s April 26, 1973 meeting the Committee was formally recognized (see Resolution No. 1135) as a Board created Recreation Advisory Committee (see the minutes of the Board’s March 8, 1973 meeting).
6. See the minutes of the Board’s November 30, 1972 meeting.
7. Interestingly, the District’s acquisition of roughly 58 acres of land from Boise Cascade and the Ocheltrees (see discussion below) for park and recreation purposes, filled the bill.
8. See https://www.yourtahoeplace.com/ivgid/about-ivgid/history-of-ivgid.
9. See pages 33-38 of the packet of materials prepared by staff in anticipation of the Board’s May 10, 2017 meeting (“the 5/10/2017 Board packet“).
10. Given this purchase was accomplished via a series of loans, and ultimately $2 million of the Recreation Revenue Bonds of 1981 which replaced those loans (see discussion below).
11. This fund was created to deposit assessments levied against local parcel owners for public sewer improvements (see Resolution No. 619) adopted by the Board on May 8,1969.
12. “On November 30, 1978, (the IVGID Board) adopted Resolution No. 1332, wherein (it) authorized the issuance, sale and delivery of $2,000,000 (worth)…of Interim Debentures (at an interest rate of 13.01%)…to pay the costs of acquisition of certain park facilities (i.e., the District’s “core recreation area,” and construction monies for recreational facility enhancements) and expenses incidental to the issuance thereof…in anticipation of the issuance of Recreation Revenue Bonds of 1979 [such Bonds (t)herein being re-designated (the) ‘Recreation Revenue Bonds of 1981’] as such Resolution has been amended from time to time thereafter…(and) the proceeds of the Recreation Revenue Bonds of 1981 (‘the total aggregate principal amount of $2,000,000’ we)re to…pay ($1,937,800) and redeem at maturity (November 28, 1983) the Interim Debentures” above (see Resolution No. 1413 adopted January 8, 1982).
13. see ¶1.01 of the Recreation Revenue Bonds of 1981.