As elsewhere stated, on/about November 18, 1977 IVGID acquired approximately 57.8 acres in the heart of Incline Village for a “core recreation (facility) area.” The IVGID Board (“Board”) commissioned a “Recreation Needs Analysis and Park Master Plan” for development of these lands, and a high priority at the top of the list was a Tennis Center. However, to come up with the moneys, an additional funding source was required. Enter approximately $720,000 from the Recreation Revenue Bonds of 1981 (see discussion below).

The Source of Financing For IVGID‘s Purchase of Its Core Recreation Properties: As stated elsewhere, on December 8, 1977 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.”¹ This loan was to purchase the aforesaid 26.6 acres, and 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 1981². Leaving the District with $2,000,000 of outstanding recreation revenue bonds, maturing November 1, 1999, and accruing interest at an unbelievable 11%-13.5%!

Where The Monies Came From to Service/Repay The Recreation Revenue Bonds of 1981: As stated elsewhere, 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” (see ¶1.01 of the Recreation Revenue Bonds of 1981).

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”). Which pursuant to ¶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.”

Construction of The Tennis & Pickleball Center: “First constructed in 1979, the Tennis Center originally included what is now courts 1-7, the practice wall and the existing Pro Shop building and restrooms. Maintenance and minor renovations have occurred at the Pro Shop and restroom building since 1979 but the original structures remain.”³ In 2003, the District constructed another four tennis courts (see discussion below), bringing to a total eleven (11) such courts⁴. “Prior to the 2013 season, courts 10 & 11 were striped for both pickleball and tennis. In 2015, Court 11 was resurfaced with a new color scheme to attempt to further define the pickleball boundaries from tennis lines.”³ Today “the Incline Village Tennis & Pickleball Center offers eight tennis courts, 15 pickleball courts, and a…Pro Shop. The center is located adjacent to the Recreation Center off…Incline Way. “⁵

Financing Initial Construction of The Tennis & Pickleball Center: Monies for initial construction of the Tennis Center ($720,000) came from the sale of “$2,000,000 (worth)…of Interim Debentures²…(issued) for the Purpose of Paying the Costs of Acquisition (of the 26.6 core acres) and Other Costs of Recreation Improvements.”⁶

Incline Village Recreation Facilities Master Plan: “In January of 1999, over 150 community members and IVGID staff met to create a community-wide strategic vision of Incline Village and Crystal Bay. The result was…a list of issues…cover(ing) a wide range of areas…The primary items related to administration infrastructure needs and recommendations as to how to meet the(m)…The intent of this…master plan (wa)s…to guide the community’s capital investment decisions for recreation opportunities for the next 10 to 15 years.”⁷ In 2000 the District commissioned this recreation facilities master plan. The stated objective was to “enable IVGID to move forward with recreational improvements.” With this in mind, the Plan identified and prioritized a number of “capital investment decisions related to recreation.” And one of those decisions encompassed “construction of four (4) new asphalt courts and installation of a seasonal cover.”⁷

Estimated Financing⁸ to Implement These Capital Projects: The Plan made it clear that these proposed “capital expenditure projects (we)re anticipated to be funded through a…$10.5 million…bond…planned to be issued in 2001.”⁹

The Source of Payment For These New Estimated Capital And Operational Expenses: Again according to the Plan, a “recreation fee…increase (of) $100 per (assessed) property…effective for the 1999/00 fiscal year.”¹⁰

Tennis Center Facilities Assessment And Master Plan: At the urging of former IVGID engineer Brad Johnson, in 2016 the District commissioned another Tennis Center facilities assessment and master plan. And in August of that year, the same³ was presented to the IVGID Board and the public. The stated objectives of this Plan were to:

1. “Summarize and prioritize the existing strengths and weaknesses;”

2. “Identify and recommend capital improvement projects and operational modifications;” and,

3. “Establish an asset management plan to strategically manage the funding of future projects and the continual replacement and maintenance of existing facilities.”

Because the Plan found that “the facility components of the Center (we)re aging and…need(ed) significant renewal and investment,” it made the following vital recommendations:

1. “Launch Planning For a Major Renovation to The Pro-Shop Buildings And Surrounding Site;”

2. “Construct or Repurpose Courts For Dedicated Pickleball Us(age);”

3. “Affirm Funding For (Major) Maintenance And Repair(s);”

4. Reallocate or Increase RFF “Funds in Coming Years¹¹ For Facility Renewal And Modernization;”

5. “Restructure Pro-Shop Retail Operations;” and,

6. “Fine Tune (Other) Operations.”

Conclusion: So now you know how and when IVGID acquired the Tennis Center. And its future if proponents of more-and-more get their way!

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1. 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.
2. “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…58 acres of land within the District and…Phase I (of)…the improvement of such land with recreational facilities and improvements (i.e., the Tennis Center)…more particularly described in the ‘Recreation Needs Analysis and Park Master Plan’ prepared by Economics Research Associates, EDAW, Inc…and (the) expenses incidental to the issuance thereof…in anticipation of the issuance of (the) 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).
3. See that August 2016 Final Tennis Center Facilities’ Assessment and Master Plan.
4. Go to the History of IVGID.
5. Go to https://www.yourtahoeplace.com/parks-recreation/tennis-center.
6. See the minutes of the Board’s November 30, 1978 meeting.
7. Go to https://www.yourtahoeplace.com/uploads/pdf-ivgid/2000_IVGID_Rec_Fac_Master_Plan.pdf.
8. In 2000 dollars.
9. $495,000 of which was estimated for the tennis component.
10. Although the Plan lists increased ad valorem, sales, lodging occupancy, and county real property transfer taxes, together with Washoe County community and federal grants as possible additional revenue sources, none was realistic. Demonstrating the consultant’s naivety.
11. The Plan depicted the percentage of funds distributed across all IVGID venues for the 2015-2016 budget year. For the Tennis Center, the percentage was a measly 1.9%.