School Board approves settlement of Fernley redevelopment lawsuit

Robert Perea, The Fernley Reporter

The City of Fernley is poised to withdraw its creation of a redevelopment district, according to the terms of the proposed settlement of a lawsuit filed by Lyon County and later joined by the Lyon County School District aimed stopping the creation of the redevelopment district.

The School District Board of Trustees Tuesday night became the first party to approve the negotiated settlement agreement. It also must be approved by the Fernley City Council and Lyon County Commission.

The City of Fernley approved the creation of the redevelopment district in March 2019 that included the city’s downtown area, the industrial area and proposed development areas in the east and west parts of town.

In June 2019, Lyon County filed a lawsuit in June 2019 on the last day of a 90-day public comment period, and the school district joined the suit last July, each arguing that property tax money collected by the redevelopment agency would be diverted from the county and the school district. The county also disputed the way the city was calculating the number of properties in the redevelopment district, and that it exempted the North Lyon County Fire Protection District and Fernley Swimming Pool General Improvement District.

In June, Lyon County and the City announced they had reached a settlement of the lawsuit.

According to information provided to the school board, the City has agreed to withdraw the redevelopment agency at a City Council meeting. The county has agreed to pay the City $90,000 to defray the costs of consultants hired by the city during the creation of the redevelopment agency.

The agreement also states that if the city again attempts to set up a redevelopment agency, it will involve Lyon County and the School District.

Fernley City Manager Daphne Hooper said the City is still reviewing the settlement agreement and hopes to have it on a City Council agenda in August for consideration.