Commission can sell $105M in bonds for Project Neon construction

By Cy Ryan

Wednesday, Dec. 16, 2015 | 5:11 p.m.

The state Transportation Department has been authorized to sell $105 million in bonds as the first payment for construction on Project Neon in Las Vegas.

Robert Nellis, assistant director for administration in the department, said Wednesday that the project is 307 days ahead of schedule, and drilling began Tuesday night.

These are the first bonds issued for construction for the widening of Interstate 15, Nellis said. The department sold $100 million in bonds earlier to acquire rights-of-way along the project. The design construction costs will be $559 million, and completion is set for the final quarter of 2019.

The approval of the bond sale came from the Legislative Interim Finance Committee. It also authorized the department to issue $160 million in bonds to retire previous sold bonds, at a higher interest rate. Nellis estimated a savings of $7 million to retire those bonds.

The $7 million savings might be slightly lower now that the interest rate has been raised, Nellis said.

But state Treasurer Dan Schwartz said the interest rate increase will yield more return on the state and local governments' investments.

He said the federal action should increase the yield on the state and local government investments. The treasurer’s office invests money for 80 local governments.

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