Friday, Dec. 28, 2001 | 9:40 a.m.
The loathsome years of decay and blight in downtown Las Vegas appear to be fading as the city braces for a new round of development next year that could redefine the city's core.
For years, city officials have wrestled with negative stereotypes of downtown and broken promises from developers.
But this year all of the talk, the endless promotion and the biggest cheerleader of all -- Mayor Oscar Goodman -- have created the opportunity for an energized downtown with housing, retail and entertainment.
Still hovering over the city's potential success, though, are the effects of Sept. 11, which pose a threat to projects proposed for next year.
While almost a dozen projects are expected to break ground next year, the buildings won't open until at least 2003, at the end of the mayor's four-year term.
With economic hurdles ahead, the city's redevelopment staff next year plans to build on recent accomplishments by continuing to re-urbanize downtown by recruiting new businesses to diversify the economy.
Lesa Coder, the city's business development director, said the emphasis next year will be placed on targeting industries foreign to downtown or even the Las Vegas Valley, starting with an academic medical center.
The opportunity for an academic medical center began in 2000, Goodman said, when the city "bought the farm" -- 61 acres of prime real estate west of downtown that is a virtual blank canvas. The seeds were planted this year, when the City Council determined that the property must include an academic medical center, performing arts center, high-density residential and office space.
Coder said when the city acquired the 61-acre parcel from the Union Pacific Railroad last year, it generated a new excitement that has been the driving force for new projects this year and beyond. Developers eyeing the 61-acre parcel started looking at downtown in a whole new light, she said.
Over the next year, Coder and her staff will continue discussions with the University of Nevada, Las Vegas to assist it with locations for various medical campuses. Goodman said he has met with several medical leaders and hopes to have a "letter of interest" from a company willing to develop the first building in the coming months.
"If I have anything that is my dream or I am going to stake my success on, it's going to be on that concept," Goodman said.
In the months following the council's decision to begin negotiating with Southwest Sports Group to develop the parcel, several other projects were proposed for property adjacent to the 61 acres.
Developers announced plans to build a 57-acre furniture mart and a high-end retail outlet mall on 39 acres at Grand Central Parkway and Bonneville Avenue.
City officials also this year celebrated the opening of the first Class A office tower to be built in more than 20 years. It was constructed by the Pauls Corp. at the corner of Fourth Street and Lewis Avenue. In December, Pioneer Endeavors Inc. broke ground on a law office at Fourth Street and Clark Avenue.
Even with the successes, the city tried twice to lure a high-tech Internet company downtown, but both agreements failed. Goodman cites their demise as one of the city's biggest disappointments this year.
But not everyone is counting the city's successes this year. Longtime developer Irwin Molasky, who owns the 25-year-old Bank of America building downtown, criticized the city's redevelopment efforts earlier this month during an interview on the Las Vegas Sun's TV news program "Face to Face" with Jon Ralston.
Molasky said there is no level playing field downtown because his building must compete with other developers who have gained financial help from the city. Molasky's building has funneled more than $90,000 annually through taxes into the redevelopment fund for 16 years, he said, which is being turned over to other developers for competing projects.
"To compete against someone who's using city funds against private enterprise isn't fair," he said.
Molasky said downtown doesn't need more office space but it does need "rooftops" and more diversification. And he said city officials are giving away incentives without knowing what kind of development is best for downtown.
Coder said she respects Molasky's opinions but maintains there is a fair process to downtown development. Financial incentives aren't given away unless a real need is demonstrated, she said.
"Some businesses are more fortunate than others, and can make it on their own," she said. "Others can come in with a little bit of help."
Next year officials will be called to ground-breaking ceremonies for several projects that could help diversify the economy and bring more tourists and residents to downtown.
The high-end outlet mall, being developed by Chelsea Property Group, and the first phase of the nearby furniture mart will break ground in the spring. The projects should be completed in 2003 or 2004.
Coder's office will continue monitoring the two projects next year to make sure they come to fruition. Staff members receive and pass along calls daily from tenants interested in leasing space at the projects, she said. Her office will also guide the developers through the permitting process.
Three new housing complexes -- studio and loft-style apartments marketed toward young professionals -- will break ground next year. They are:
* Kirby Lofts, a single room occupancy project at the corner of Las Vegas Boulevard and Hoover Avenue, being built by the Tom Hom Group.
* L'Octaine, studios and lofts opening on Las Vegas Boulevard and Gass Avenue, also built by the Tom Hom Group.
* City Centre Apartments, being built by SDA, Inc. at the corner of Bridger Avenue and Eighth Street.
Councilwoman Lynette Boggs McDonald said housing is an important component for downtown success, but it must be affordable.
"Until you have a strong housing component, it's very difficult to sustain a commercial development," she said. "I think we will continue working on projects that bring the residential side of development, in encouraging more people to live within the redevelopment area."
While the cranes are busy, several projects will open to the public in 2002.
The Mainor & Harris law firm will open its three-story, 27,000-square-foot building at the corner of Gass and Fourth Street in February.
Randall Mainor, a partner with the firm, said he wouldn't have kept his office downtown and invested $4 million in a new building if he doubted that the area would prosper.
"I'm hopeful that it will encourage others to get rid of some of the blighted buildings downtown and put in some nice businesses," Mainor said. "People are still afraid to go downtown. But the more that people do what we decided to do, the better it's going to be."
Near the Mainor & Harris building, the city in February will break ground on a project that will turn Lewis Avenue into a pedestrian-friendly corridor, complete with a small river -- dubbed for now as "Oscar's river" -- that will be completed by the summer.
Neonopolis, the entertainment project that Goodman originally did not support, will be the cornerstone project to open in 2002. Pegged for an opening in May, the project will be home to a movie theatre complex, restaurants and other entertainment. Goodman said the project must succeed or all the year's efforts will have been wasted.
"It's the pivotal point for downtown redevelopment," he said. "It has to be successful right off the bat, otherwise all my plans will go awry."
Two public works projects downtown -- the Las Vegas City Hall expansion and parking garage, and the Regional Justice Center -- will also be completed in the spring, a sign of improvement downtown.
Highest on Goodman's wish list for next year is finding a new home for Metro Police's Downtown Area Command, so that its current headquarters, the historic Fifth Street School, may be converted into a cultural marketplace that will complement the downtown post office on Stewart Avenue. Next to the post office, an arena is being proposed by Idaho developer Larry Leasure.
Coder said once a development concept is approved by the council for the 61-acre parcel next year, her office will court new industries by refining marketing materials with a clearer focus.
Her office will also update the city's redevelopment plan and look for ways to generate revenue to the agency, such as leasing billboards and retail space.
Outlying areas will also be a top goal, including farther east on Fremont Street, and the creation of a new business park.
Goodman admits he has grown frustrated with the time it takes to get new projects off the ground. But he said his energy hasn't diminished from this year and will be even stronger in 2002.
"I'm always hard on myself, saying that I'm not getting things done, but unfortunately it takes a little longer than I would have liked," he said. "If had my druthers I would pick up the pick and hammer and I would build these projects myself."
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