Wednesday, April 20, 2011 | 2:05 a.m.
The Henderson City Council approved a resolution Tuesday night paving the way for an ambitious $1.5 billion health care campus called Union Village.
The resolution was approved unanimously with Councilman Steve Kirk absent. It expresses the city’s intent to sell 150 acres of city-owned property at U.S. 95 and Galleria Drive for an integrated hospital and retail campus.
A preliminary master plan design for the privately funded Union Village project was announced on April 7 by its developer, Union Village LLC and its partners. When it’s completed in four to eight years, Union Village will be one of the nation’s first integrated health villages — a mixed-used development anchored by a hospital and senior retirement community, officials said.
Tuesday’s vote was the first step in finalizing the sale of the property. City officials and developers said they expect to close the sale by mid-June.
Henderson’s real estate portfolio manager, David Norris, outlined some details of the sale during Tuesday’s council meeting.
The city completed three appraisals on the property to determine its value, which was put at $30.1 million, Norris said.
The property, however, contains a large gravel pit, which would take 2.1 million cubic yards of dirt to fill.
Although the City Council authorized $4.6 million in November to begin work filling the pit, Union Village developers would need to finish grading work to the tune of $17.5 million. That cost to the developer drops the land’s sale value to about $12.6 million, Norris said.
Furthermore, the city has allocated about five acres of the land for the Henderson Space and Science Center, which will be developed separately and partially funded by the city. The museum land, valued at $1 million, will be retained by the city, leaving the final sale price of the land for Union Village at $11.6 million.
Norris also outlined several provisions — safeguards for the city — that must be met by developers as part of the land sale agreement.
The land, for example, cannot be re-zoned or flipped from the planned health care village into a housing development. Any land sales to another owner would require city approval.
The city is also looking at a five-year deed of trust that would bind Union Village LLC to the property during the contract period.
In return, Union Village developers will be eligible to receive some of the $241 million in tax increment financing that will be generated from property taxes on the land over a 25-year span.
“This is a really big project that’s going to really benefit our community,” said Councilwoman Gerri Schroder. “It’s going put 17,000 people back to work, and it’s going to have great benefits in the future of the economy for the city of Henderson and for Nevada itself.”