News Flash

City of Fernley News Flash

Posted on: June 19, 2020

Update Regarding Nevada Pacific Parkway Extension Project

Fernley Residents: Please see the following message from Mayor Roy Edgington regarding the Nevada Pacific Parkway Extension Project. Please help share the message so community members are aware of what is happening.

Hello Fernley, this is your Mayor Roy Edgington with an important update for our citizens regarding a future grant application for the connection of Nevada Pacific Parkway. This may be a lengthy video, but I ask you to please listen in its entirety so that questions are answered, and rumors are dispelled.

The owner of the Victory Logistics Industrial Park, Mark IV Capital, has been working with the City to sign on as a partner for a U.S. Department of Transportation grant application to build an overpass over the railroad, to connect Nevada Pacific Parkway to Highway 50.

As part of this project, Mark IV also proposed building a rail spur and transloading facility as part of the grant application. US DOT grants are only offered to local, county, and state governments, therefore Mark IV Capital is ineligible to apply for the grant on their own.

One of the issues we hear our citizens repeatedly say is “If the City would just get a grant.” However, federal grants are not free money so to speak, typically requiring almost 50% cash match of the total project up front. In addition, federal grants are what are called “reimbursable grants.” What this means is whoever is awarded the grant, must pay for the costs up front, and then they are reimbursed by the federal government.

For a city with a general fund budget of $8 million dollars, this type of project presents a problem – because the total price tag for the project is $54 million. Where would our City come up with funding to begin construction on such a project?

The City worked with Mark IV extensively to develop an agreement, to allow Mark IV to front the money for the project, the City would then administer the project, and reimburse Mark IV with the federal funds.

However, at Wednesday’s Council Meeting, Mark IV’s rep was unable to answer several of the Council’s questions. Council members were very concerned regarding who was responsible for the grant administration, furthermore, the City did not have any assurance in writing regarding NDOT’s participation in this project.

In addition, the Council was concerned because if the developer walked away - which has happened before - or if we find ourselves in another pandemic or crisis, the financial liability of this project would fall onto the City of Fernley and our citizens. Considering all of these factors, the Council voted no to move forward with the City applying for this grant.

As with all grants, there are deadlines, and the application deadline is today, June 19th.

The Council and City staff recognize how important the NV Pacific Parkway project is to our community. Which is why we continued to make every effort to collaborate and reach out to all of our partners following the Council vote.

We learned that the County is eligible to apply for this US DOT grant, and have worked hard to discuss this collaboration. We are happy to report that Lyon County will be working with Mark IV to apply for the grant.

This is a very good outcome, as the County is in a position with more resources to use for such a substantial project versus the City of Fernley. Should the grant be awarded, the City will still be involved throughout the entire project. As Mayor, I sent a letter of support for this project today.

If you have questions, I urge to please call me or email the City Manager at dhooper@cityoffernley.org. I can be reached at 775-790-5655. There is a lot of false information that gets circulated, PLEASE go to the source.

Lastly, I would like to thank all of the partners who worked very hard to make this happen: Northern Nevada Development Authority, EDAWN, Mark IV Capital, City Staff, City Council, Lyon County, and Nevada’s Congressmen and Senators. If the funds are awarded, the Nevada Pacific Parkway Extension will move forward and be a win for everyone. Thank you for your time. Stay safe, and stay healthy.

Video Message from Mayor Edgington
Facebook Twitter Email