No immediate action seen on downtown land

The 61.5 acres west of downtown Las Vegas that at one time had been targeted as a site for a domed stadium won't be developed anytime soon.

One of the local coordinators of downtown development said Lehman Bros. Holdings Inc., which acquired the land in a foreclosure sale in July, isn't in a hurry to dispose of the land, which was picked up for $47.5 million in an auction.

Local real estate experts had speculated that New York-based Lehman Bros. would quickly dispose of the land since the company doesn't develop property. The company did not return phone calls seeking comment.

Lehman Bros. was the first lien-holder for the land, owned by Nevada Stadium Partners Inc., a subsidiary of Ply Stadium Partners, a Dallas-based company. Ply was operated by entrepreneur Paul Tanner, the former chief executive officer of Polyphase Corp., a frozen food, forestry and electronics products company.

Known as a lender in real estate circles, Lehman Bros. "is completing their due diligence to see exactly what they've got in Las Vegas," said Mike Forche, president of the City Centre Development Corp., which is coordinating the redevelopment of the downtown area.

"I've been on the phone with them several times and communicating with the city is paramount in their plans to develop the property," Forche said.

Mayor Jan Jones said she is happy to see the land in the hands of a company willing to be a partner with City Hall. One of the biggest frustrations city officials experienced with Tanner was lack of communication.

Forche said a mixed-use development has been envisioned by his group and city officials. At one point, they discussed options involving 115 acres west and southwest of the Lehman Bros. land for a project to include an events center, a performing arts district and a collection of restaurants. The domed stadium was anticipated to be part of the package.

But Tanner couldn't assemble financing for the stadium and the property fell into bankruptcy.

Financing, Forche said, is what will steer development of both land parcels.

"There's a lot of coordination that has be done with the (Union Pacific) Railroad (owner of the 115 acres)," Forche said.

"We know nothing is going to happen until at least the end of the year. But we also know no one is going to develop that land without first stopping at the city."

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