Following a public hearing and a vote, commissioners advanced a proposal from Reno and Nebraska-based Cabela's Retail Inc. to develop a 125,000-square-foot retail center that is expected to generate a rush of out-of-state visitors.

Legislation first approved in 2003 and modified in 2005 establishes a means for municipalities to create tourism improvement districts funded by "STAR bonds'' — sales tax anticipated revenue.

Under the legislation, 75 percent of the sales taxes collected from retail establishments within the improvement district can be applied for up to 20 years to retire the bond debt. The remaining 25 percent is returned to the state and redistributed as it had without the improvement district.

To create the improvement district, the governing body of the municipality must determine that as a result of the project, a "preponderance'' of the increase in sales within the proposed district — more than 50 percent -- must come from tourists who are residents from outside the state.

The Tourism Commission enters the equation by having to verify the municipality's findings; it must also determine that a preponderance of the increase in sales would come from out-of-state tourists. Once the commission makes that determination, the matter goes back to the municipality for final approval.

In the case of the Cabela's request, the Reno City Council is the requesting municipality for a project planned at Boomtown on the western edge of Reno. The Reno council and the Tourism Commission concurred that they believe Cabela's — an outdoor goods retail outlet similar to the operation run by Bass Pro Shops at the Silverton in Las Vegas — would draw considerable interest from out-of-state tourists based on Cabela's record in other stores.

The commission unanimously endorsed the project establishing the first tourism improvement district in the state.

Following the Cabela's presentation, commissioners received a presentation on what could be the second tourism improvement district. Representatives of the Sparks City Council discussed the proposed Legends Project — a major hotel-casino, retail center and minor-league baseball stadium complex — planned at Sparks Marina.

The Sparks Marina is located on a small lake just off Interstate 80 on the east side of Sparks and features water sports amenities. Sparks officials hope to bring a formal request for a tourism district at the next commission meeting.

Bruce Bommarito, executive director of the Nevada Commission on Tourism, said he knows of no plans for any Southern Nevada entities to seek tourism district status for projects in the Las Vegas Valley.

In other business, the commission:

• Introduced two new commissioners, Ellen Oppenheim, president and chief executive officer of the Reno-Sparks Convention and Visitors Authority, and Howard Reinhardt, corporate vice president of gaming for Columbia Sussex Corp. in Lake Tahoe.

• Received a report on the June Asia sales mission during which a delegation from the state visited Tokyo and Osaka, Japan; Seoul, South Korea; and Beijing and Guangzhou, China. Bommarito said the delegation met with representatives of Korean Airlines, which will begin nonstop service between Seoul and Las Vegas on Sept. 12. He also said representatives of Guangdong Province in Guangzhou plan to lobby for nonstop flights between Guangzhou and Las Vegas.

• Received a report from the commission staff on plans for an exploratory trip to a travel conference next year to begin efforts to approach what is considered the state's next big international market -- India.

• Received a report on the completion of the taping of the latest edition of ``Nevada Passage,'' a made-for-TV competition that showcases tourism locales across rural Nevada. The show is expected to debut next month nationwide. Bommarito also said Internet requests for information about the state continue to run ahead of last year's totals.