Nevada City’s Sugarloaf purchase hits snags |

Nevada City’s Sugarloaf purchase hits snags

Nevada City’s longstanding dream to buy the top of Sugarloaf Mountain is looking cloudy – county-administered state funds may not come through in time.

After years of negotiating, Nevada City reached a purchase deal in July with the family that owns the iconic, flat-topped mountain overlooking downtown.

City officials had planned to use $379,000 in Proposition 40 recreational grant funds, plus $71,000 in AB 1600 Park and Recreation Mitigation Fees to finance the balance of the $450,000 purchase price.

The Prop. 40 funds must be used by spring 2011.

County supervisors cast doubt on the AB 1600 portion of the funding plan:

“I am concerned that your request will not meet the Board’s criteria for AB 1600 grants and would circumvent a competitive process that was created to impart greater fairness in the granting funds,” wrote Chairman Nate Beason.

“Almost certainly, such a departure would create a perception of favoritism among other potential applicants and the public at large,” Beason continued.

Nevada City councilmembers will consider a list of alternative projects for the Prop. 40 funds at their meeting 6:30 p.m. Wednesday, in the event the Sugarloaf project falls through.

For more on the story, see Tuesday’s edition of The Union.

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