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The original item was published from 2/19/2021 10:09:36 AM to 2/26/2021 5:05:04 PM.

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Posted on: February 19, 2021

[ARCHIVED] County Approves Settlement Agreement with the City of Fernley

February 18, 2021 The Board of County Commissioners approved a Settlement Agreement and Stipulated Judgement with the City of Fernley in regards to Fernley's Redevelopment Agency. June 12, 2019, Lyon County filed this suit, asserting several causes of actions challenging the validity of the Redevelopment Plan under NRS Chapter 279 and naming as defendants City of Fernley, Fernley Redevelopment Agency, State of Nevada Department of Taxation, North Lyon County Fire Protection District, Fernley Swimming Pool District, and Lyon County School District.

The City of Fernley moved to dismiss Lyon County and Lyon County School District’s complaint with prejudice pursuant NRCP 12(b)(5), which motion was joined by North Lyon County Fire Protection District and Fernley Swimming Pool District. Lyon County and Lyon County School District opposed the motion. The motion was fully briefed and submitted to this Court for decision. This Court, prior to ruling on the motion, held a status conference in which the parties advised that mediation might assist the parties in seeking resolution. This Court accordingly continued proceedings in this matter to provide the parties with the opportunity to mediate their dispute.

Through the mediation process the parties agreed to:

1) The City of Fernley hereby withdraws its motion to dismiss the First Amended Complaint filed by Lyon County and Lyon County School District;

 2) North Lyon County Fire Protection District and Fernley Swimming Pool District hereby consent to the withdrawal of the motion to dismiss that was filed by City 

 3) Lyon County and Lyon County School District hereby voluntarily dismiss all causes of action against the State of Nevada Department of Taxation pursuant to Rule 41 of the Nevada Rules of Civil Procedure; 

4) The Parties stipulate, agree, and consent to the entry of this Settlement Agreement and Stipulated Judgment in this matter hereby declaring that the City of Fernley’s current Redevelopment Plan is unlawful, void, and invalid under NRS Chapter 279 and of no further force and/or effect. The Parties further stipulate and agree that entry of this Settlement Agreement and Stipulated Judgment is without prejudice to the ability of the City of Fernley to adopt a new redevelopment plan in the future consistent with the mandates of NRS Chapter 279 and the terms and conditions of this Settlement Agreement and Stipulated Judgment; 

5) The Parties jointly stipulate and agree that all funds received by the Fernley Redevelopment Agency for the previous and current tax year, if any, will remain with the Fernley Redevelopment Agency, and that the current assessment and tax increment treatment shall remain in force for the current tax year until entry of this Settlement Agreement and Stipulated Judgment. The foregoing shall not bar or modify the City of Fernley and/or the Fernley Redevelopment Agency from collecting and distributing taxes pursuant to a new redevelopment plan that is adopted in accordance with the mandates of NRS Chapter 279 and the terms and conditions of this Settlement Agreement and Stipulated Judgment; 

6) Lyon County will pay ninety thousand and 00/100ths Dollars ($90,000.00) to the City of Fernley’s general fund within ninety (90) days of entry of this Settlement Agreement and Stipulated Judgment;

 7) The Parties jointly agree, consent, and acknowledge that City of Fernley may adopt a new Redevelopment Plan at any point after entry of this Settlement Agreement and Stipulated Judgment; provided, however, such Redevelopment Plan shall comply with the mandates of NRS Chapter 279; 

8) The Parties stipulate and agree that if City of Fernley seeks to adopt a new Redevelopment Plan following entry of this Settlement Agreement and Stipulated Judgment, the Parties will work on the new Redevelopment Plan in a coordinated and cooperative effort to create a Redevelopment Plan that complies with NRS Chapter 279, addresses the redevelopment needs of City of Fernley, and reduces the fiscal impact of such plan to Lyon County and Lyon County School District. Lyon County further agrees that if City of Fernley seeks to adopt a new Redevelopment Plan following entry of this Settlement Agreement and Stipulated Judgment, Lyon County, as the initial step in the coordinated and cooperative effort referenced in the foregoing sentence, will provide proposed revisions and changes to the Redevelopment Plan the Fernley City Council adopted on March 14, 2019; provided, however, that Lyon County shall not thereafter be obligated to fulfill the lead role in developing or drafting any new Redevelopment Plan. City of Fernley shall fulfill that role, with the other Parties hereto participating in the coordinated and cooperative effort set forth above. The Parties stipulate and agree further that if City of Fernley seeks to adopt a new Redevelopment Plan, the Parties will hire a neutral firm, who did not work on City of Fernley’s prior Redevelopment Plan, to review any new Redevelopment Plan and analyze the fiscal impacts on such plan to the Parties hereto. The Parties agree that City of Fernley shall pay the fees and costs of the neutral firm;

 9) Lyon County further stipulates and agrees to devote County staff time to work on any new Redevelopment Plan the City of Fernley seeks to adopt and to make comments and suggested revisions to any such Redevelopment Plan in accordance with the terms and conditions of this Settlement Agreement and Stipulated Judgment. The Parties agree and understand that the Lyon County staff will be Lyon County employees with other duties and will not be assigned full-time to the new Redevelopment Plan. Any other parties are also permitted to devote staff time or resources to the development of the new Redevelopment Plan;

 10) The City of Fernley further stipulates and agrees to consider Lyon County, Lyon County School District, Fernley Swimming Pool District, and North Lyon Fire Protection District’s comments and suggestions in good faith, in accordance with the terms and conditions of this Settlement Agreement and Stipulated Judgment, in adopting any new Redevelopment Plan; 

11) City of Fernley stipulates and agrees further that the Board of the Fernley Redevelopment Agency under any successor Redevelopment Plan shall consist of five members – two of whom shall be members of the City of Fernley City Council, one of whom shall be a member of the Lyon County Board of Commissioners, one of whom shall be a Lyon County School District Board Member, and one of whom shall be the Mayor of the City of Fernley. The Mayor of Fernley will vote only in tie-breaking situations; provided that all Redevelopment Agency Board Members must be eligible for such service under NRS Chapter 279. If no member of Lyon County Board of County Commissioners is eligible for service on the Redevelopment Agency Board under NRS Chapter 279, the Lyon County Board of County Commissioners shall provide the Fernley City Council with a list of three people eligible to serve on the Redevelopment Agency under NRS Chapter 279, and the Fernley City Council will appoint one of those listed persons to the Redevelopment Agency Board. If no member of Lyon County School Board is eligible for service on the Redevelopment Agency Board under NRS Chapter 279, the Lyon County School Board shall provide the Fernley City Council with a list of three people eligible to serve on the Redevelopment Agency under NRS Chapter 279, and the Fernley City Council will appoint one of those listed persons to the Redevelopment Agency Board; 

12) City of Fernley shall have final decision over the approval of any future Redevelopment Plan; 

13) Nothing herein shall preclude Lyon County or any other Party from challenging any future Redevelopment Plan adopted by the City of Fernley to the extent such Redevelopment Plan or its adoption violates any applicable law, including but not limited to NRS Chapter 279; 

14) The Parties stipulate and agree that their respective obligations in this Settlement Agreement and Stipulated Judgment are contractual in nature and may be enforced as such in addition to any other legal and/or equitable remedies that may exist with respect to the enforcement of a final judgment; 

15) The Parties hereby acknowledge, stipulate, and agree that irreparable harm will occur if there is breach of this Settlement Agreement and Stipulated Judgment for which monetary damages will be inadequate. Therefore, if there is a breach of this Settlement Agreement and Stipulated Judgment, then any non-breaching Party shall be entitled to injunctive relief from a Court of competent jurisdiction, in addition to any and all other remedies at law or equity, to enforce this Settlement Agreement and Stipulated Judgment; 

16) This Settlement Agreement and Stipulated Judgment may be amended only by a writing executed by all of the Parties. The Parties accordingly hereby waive any right to seek modification of or relief from this Settlement Agreement and Stipulated Judgment under Rule 60 of the Nevada Rules of Civil Procedure or any other applicable law or rule.

 17) This Settlement Agreement and Stipulated Judgment contains the entire agreement among and between the Parties hereto, and the terms of this Settlement Agreement and Stipulated Judgment are contractual and not a mere recital. 

18) Notwithstanding the entry of this Settlement Agreement and Stipulated Judgment in favor of Lyon County and Lyon County School District, the Parties hereby stipulate and agree that all Parties shall bear their own costs and attorneys’ fees.

A copy of the approved document can be found: https://www.lyon-county.org/DocumentCenter/View/10065/City-of-Fernley-Settlement-Agreement--RDA

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