Monday, June 4, 2001 | 10:50 a.m.
Las Vegas officials during the next few weeks will be grappling with the realization that the future of 61 acres of development downtown will come at a price.
As the old saying goes, you have to give a little to get a little, and city officials will have to determine just how much the city is willing to give -- by way of funding and other improvements -- to ensure that developers will invest millions of dollars on downtown projects.
Four proposals for 61 acres of land downtown, near the Clark County Government Center, were released Friday, giving the mayor and City Council the weekend to absorb the lengthy reports and the prospect that something spectacular could rise out of land that has been vacant and dusty for years.
All four developers have a vision for the land, but they are also asking the city for assistance to bring the projects to fruition.
Held Properties Inc. is proposing to build a $1.6 billion academic medical campus.
The center would be built for the University of Nevada and would include several schools of medicine as well as a specialty hospital, a bio-medical tower, a medical office tower, a museum and a library. The campus also would include a performing arts center, two apartment towers, a senior apartment complex and commercial and retail shops.
The project is estimated to generate 20,500 construction jobs and 9,400 long-term jobs.
Although exact funding sources have not been identified, the developer is asking for a number of things from the city if the council chooses to go forward with the project.
According to the proposal, the developer wants the city to build several parking garages, which would offer 14,046 parking spaces. The proposal does not offer an estimate of the cost, but by comparison, the city is proposing to build a parking garage for the Regional Justice Center to provide 1,650 spaces for $13.8 million.
The developer also is asking the city to build, maintain and police a 10-acre park in the middle of the project, which would cost an estimated $2.5 million to build, according to the proposal.
The developer also wants the city to build a bridge connecting the land to Fremont Street, in addition to various tax contributions.
In a separate proposal, Millennium City LLC, which is building a furniture mart on an adjacent 57 acres, is suggesting it would work with Held Properties to develop the medical campus and performing arts center. The project also will include residential and office towers.
According to the proposal, the city won't have to provide any funds for the project, because the money needed would be generated by the project itself.
The developers are asking for a waiver of flexibility of parking standards and an advance on the tax credit that the project is expected to generate.
Southwest Sports Realty is proposing a professional baseball park as its centerpiece, with potential locations for a performing arts center, medical center and a park.
Southwest Sports Realty is a subsidiary of Southwest Sports Group, a Dallas-based sports and entertainment company that owns the Texas Rangers, the Dallas Stars and a television station.
The company is working in conjunction with Mandalay Sports Entertainment, which owns the Las Vegas 51s and other companies.
Funding sources have not been identified, but the company is asking for money from the redevelopment area's tax pool and other public funds. The project is estimated to cost $445 million.
LV Studio Development Inc. is proposing to build a UNLV film school, performing arts center, tech center, office space, studios and retail. The company is negotiating with seven sources to fund the project, according to the proposal.
Although the assistance from the city is not specified, the proposal implies that the land would be acquired from the city at no cost.
In September 1998, Lehman Bros. appraised the parcel at $48.3 million.
None of the four proposals suggested gaming uses for the land, but there remains a possibility that a gaming component could go on the site. On Wednesday the council will vote on a bill that would expand the Downtown Casino Overlay District boundaries to the 61 acres. Originally, the boundaries stopped east of the Union Pacific Railroad tracks.
After reading the proposals Friday, Mayor Oscar Goodman said the city has some serious decisions to make before June 20, when a developer is expected to be selected.
"What blew my mind was the amount of money they are ready to infuse into this project, and the benefits the city would receive," Goodman said. "The downside of what I was seeing was that we're not going to see it done tomorrow."
Goodman said the city will negotiate the developers' requests. He added that the city has the high card, because it owns the land.
"We're certainly going to do what is in the best interest of the community, and that might mean the city could provide tax increment benefits, or (construction of) highways and byways," Goodman said.
City Councilman Lawrence Weekly, whose ward includes the 61 acres, said residents are still apprehensive about the projects, waiting to see what happens and where the money will come from to build. But after firm commitments are made by the developers, residents will be more in favor of providing them with some assistance, he said.
"I think once we come up with a good, sound project, I think the public would be a little bit more at ease at saying, 'Let's afford this.' I think the public wouldn't mind kicking in some funds and giving their support if it's a good project," Weekly said.
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