Wednesday, Sept. 29, 2004 | 10:59 a.m.
Las Vegas will work with The Related Companies for development of 61-acre slice of land that could be the most significant piece of the ongoing effort to re-create the Las Vegas Valley's central core.
The Related Companies already is involved as a partner in the billion-dollar World Market Center, now under construction next to the 61-acre site, and is considered a top-level developer. Among its recent projects are the $1.6 billion Time Warner Center in Manhattan and a 72-acre downtown development in West Palm Beach, Fla.
"We view the development and planning of 'Union Park' as our company's next great challenge and opportunity, and have devoted a great deal of time and resources to this effort," Related Executive Vice President Marty Burger said in a statement. "Once completed, this project will certainly be recognized as one of the nation's great mixed-use developments."
Burger said this morning that he'll begin meeting with city officials next week. Related has 75 days to develop a more detailed proposal that addresses financing, building, deadlines and incentives. After the 75-day period, if the city and Related agree to a development contract, the company will be asked to put up a $2 million nonrefundable deposit.
Related is being asked to work with a city-developed outline that calls for about 23 acres to be used for high-rise residential buildings, about 3.5 acres for an urban park, close to 5 acres for a performing arts center and about 18 acres for an academic medical center.
The remainder goes for roads and other open space needed to create a functioning urban grid.
The city plan also includes some details -- for example, the placement of buildings to effectively manage the desert sun, providing shade at the high points of the day -- which the developer is expected to incorporate.
"We took that into account, but at the end of the day what's in our master plan and what actually gets built will be a collaboration with the city," Burger said.
City officials did not return telephone calls this morning. However, they have said that some elements of the plan could be modified, such as the space allotments.
"The city made recommendations ... and we took all of that into account," Burger said. "They had great ideas ... even in our plan, we show a performing arts theater and show an academic medical campus ... however, that doesn't mean that's where they'll be."
He said that incentives are likely to be part of the plan.
"We didn't ask specifically for anything, but we would expect, especially in the public pieces like the Performing Arts Center or park, there would be some public money available," Burger said.
The academic medical center issue is under negotiation with the state's university system, following the failed attempt to lure the world-renowned Cleveland Clinic to the site. Liquor distributor Larry Ruvo already has donated millions toward development of an Alzhemier's research center.
Las Vegas Mayor Oscar Goodman has said that an academic medical center is a key to economic diversification in the valley.
The 61 acres is west of the railroad tracks behind the Plaza hotel, which is owned by Barrick Gaming, a company that itself has big downtown dreams.
Barrick Gaming President Stephen Crystal, whose company owns the Plaza, has several reasons to be interested in the city's choice of developer. The Plaza owns a spot along Main Street that the Regional Transportation Commission has designated as a transit hub for the monorail extension. The company wants to exchange that for a piece of the 61 acres.
Barrick also is closely watching development of the World Market Center, hoping to benefit from the influx of visitors it's expected to bring.
"They (Related) have the track record to get this project done. I don't think the city could have done a better job," Crystal said. "Now, we do have to work out a situation we think would benefit the city, the developer and the Regional Transportation Commission."
Barrick also owns clusters of downtown property along Fremont Street in the city's hoped-for entertainment district.
Crystal said that while the Related Companies now will have an opportunity to create lodging, entertainment and other amenities to support the World Market Center, that doesn't mean it will compete with existing hotels and entertainment venues.
"That's the wrong way to look at it. This is not an issue of competition. This is a great opportunity for the future of the city," Crystal said. "There is enough opportunity for the city and Related and Barrick to reap the benefits of expansion and development. The key question is how to maximize those opportunities, and it's in all our interests."
Burger said that "we had a very good relationship with Barrick Gaming well before they closed," and he pointed out that "the only thing between their largest property, the Plaza, and the World Market Center is the 61 acres."
South and east of the 61 acres are other elements of the effort to recreate the valley's center, including the Fremont Street Experience and a proposed entertainment district next door, the Chelsea Outlet mall, the arts district and a loft project in the old Holsum Bread factory.
In addition, several high-rise residential projects have been announced along and around Las Vegas Boulevard just north of Sahara Avenue. To the east of Las Vegas Boulevard and north of Sahara is a quadrant of neighborhoods bounded roughly by Oakey, Charleston and Las Vegas boulevards, and Maryland Parkway.
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