Friday, Oct. 7, 2005 | 7:12 a.m.
Las Vegas Mayor Oscar Goodman saw skyscrapers rising from the city's prized 61 acres within two years.
He wanted the towers to round out the city's development plan for the land on the western edge of downtown -- the jewel of his eye -- dubbed Union Park.
But Thursday the city and developer The Related Cos. walked away from 10 months of negotiations.
The deal hinged on Goodman's demand that three skyscrapers -- two residential towers and one office building -- be under construction within two years.
But Related, in negotiations to be the master developer, couldn't make that work.
"We went down the road with the mayor but at the end of the day he wanted it built quicker than we were comfortable with," Related Executive Vice President Marty Burger said.
The plan for the site includes a performing arts center, an Alzheimer's research center, an academic medical center, a new city hall, a domed baseball stadium and the residential and office buildings.
Burger said the company was planning to coordinate the construction of the performing arts center planned for the site and was going to build a new City Hall.
"But then our major office tenant fell through and the residential became too expensive," he said.
Related will continue building in Las Vegas -- and Goodman said the company could still build a 25-story high rise on the former Union Pacific land. But the development giant, a partner in the adjacent World Market Center, will not oversee the development of Union Park.
It's the second time the city has entered exclusive negotiations with a developer, and the second time it failed to sign a deal.
A setback?
No, Goodman said. The turn of events will have no effect on plans for the Alzheimer's research center or the performing arts center, both expected to be among the first buildings on the land.
"The public facilities will go forward whether Related is involved or not," Goodman said about plans for the two centers.
He said that "right now" city leaders are planning to move forward with the construction of new roads and installing utilities on the property so those two centers are not affected.
Goodman said he can now negotiate a sweeter deal for the city, and one with firm construction deadlines.
"Without benchmarks set, nothing would happen," he said.
The deal with Related pegged the land at about $1 million an acre. That price might go up to $2 million or $3 million an acre, he said.
He was quick to add that he and the city are "not in this to make money."
If the city was going to just sell the property, Goodman said he has been told the land could go for as much as $8 million an acre. "And as soon as the first steel goes in the ground it could go to $10 million an acre," he said.
Goodman and Burger met for 90 minutes Thursday, agreeing only to issue a joint press release, which blamed "skyrocketing construction costs, high land sale prices and more competition" for the end of their negotiations.
The mayor said he was far from disappointed.
"Zero, and I'll tell you that under oath," the former criminal defense attorney said.
"I feel like a baseball player who's a free agent," Goodman said. "Now I can explore the market."
Goodman said he's certain developers will keep his phone ringing off the hook today, hoping to pick up where Related dropped off.
Councilman Larry Brown agreed that the end of the exclusive negotiations with Related doesn't have much of a downside.
"I don't think we've lost anything," Brown said. "I think we've gained 365 days of land value and Related's expertise."
Dan Kulin can be reached at 259-8826 or at [email protected].
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