Mark IV Capital told the Fernley Planning Commission that its proposed power plant could generate millions in annual franchise fee revenue for the city, projecting $6.4 million in the first year and reaching $48 million annually by 2031.
In a presentation on Jan. 14, Scott Barnes, Vice President of Entitlements for Mark IV Capital, focused primarily on the company’s projected financial impacts to the city. He outlined franchise fee revenues tied to different phases of the plant’s buildout. He said the first phase of the plant planned for 2028 would generate 225 megawatts and projected $6.5 million in franchise fees to the city. Barnes said that would increase to $12.3 million in 2029 when the plant would generate 450 megawatts, $24 million in 2030 at 900 megawatts and $48 million per year at full buildout of 1,800 megawatts starting in 2030.
“Our fiscal analysis that is in the submittal for the master plan and zoning map amendment details all of this in very comprehensive, and it goes out 20 years,” Barnes said.
Planning Commissioner Robert Flores asked if some of the energy produced by the plant could be converted for residential or industrial capacity in case of an emergency that damaged the main power supply to Fernley.
Barnes responded that Mark IV is working closely with NV Energy, but is looking at all of its options, including partnering with NV Energy, doing the project privately, or forming a utility district.
The power plant is proposed to be located on a parcel of land that the City Council annexed into the city last month, at the east end of the property owned by Mark IV Capital. Barnes estimated that the site is a mile to a mile and a half from the nearest residences.
Barnes estimated the first phase of the project would cost around $500 million and about $3.5 billion at full buildout, but he said none of the cost would be paid by ratepayers.
Mark IV has an approved planned development handbook, development agreement, tentative maps, and two final maps for its Victory Logistics District project, and Barnes said another final map is expected to be recorded within a couple of weeks.
Barnes said a power plant can be built within the boundaries of Victory Logistics’ planned development because the area is zoned for industrial use. He said if an energy-related facility is proposed outside of the Victory planned development area, such as a substation, transmission line, or other facilities, a conditional use permit and public review are required. He said even with the planned development, a power plant still needs a conditional use permit to ensure the property and the project safety protocols and emissions will be subject to public review, regardless of location.
“We've applied as of yesterday for a master plan amendment and zoning map amendment, our next step following that is to submit a conditional use permit,” he said. “Each step includes a public hearing, and we will share more project details as the design progresses.”
In response to a question from Planning Commissioner Cody Wagner, Barnes said the plant would have to meet state emission standards, and it would be monitored by the Public Utility Commission.
When Wagner asked about the renewable energy mandate passed by the state requiring 50 percent renewable energy by 2030, Barnes said the real question is when NV Energy’s Greenlink Project will be done.
The Greenlink Project is a $4.2 billion energy infrastructure initiative by NV Energy to connect northern and southern Nevada through high-voltage transmission lines, one from Ely to Yerington and the other from Las Vegas to Yerington, connecting to an existing line that runs from Ely to Las Vegas. But that project has gone over budget and faces environmental challenges that have extended the timeline.
In other aspects of the Victory Logistics District project, Barnes said the 60% design plans for Nevada Pacific Parkway were approved by the Nevada Department of Transportation in December. He said they expect to complete the plans and anticipate permit approvals from NDOT, Union Pacific Railroad and others by the end of summer. He also said embankment for the overpass will begin soon and they expect to be finished with the roadway by the end of 2027.
“And if you know anything about bridge design, we have to do the embankment, load the soil for some time before we can actually start doing the rest of the work associated with that,” he said. “Right now, if you drive out 50 Alternate, you'll see that we're doing the increased soil lifts for the railroad spur.”
He also said the planning effort for the North Fernley Plan will begin in the next couple of months, and will include residential, commercial, light industrial, and institutional land uses.
Because the agenda item was for a presentation only, no public comment was taken during the agenda item. During public comment at the conclusion of the meeting, only one speaker addressed the presentation, asking where the water for the project would come from.
Planning Director Michelle Rambo responded that Mark IV has all of the water rights needed to fulfill the project, and that the city has the capacity to serve it.
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