Sun file
A sign denotes the site of the former Moulin Rouge hotel on Nov. 2, 2017.
Tuesday, July 2, 2019 | 6 p.m.
The Southern Nevada Regional Housing Authority is one of several entities that could purchase the former Moulin Rouge hotel, in an effort to revitalize the Las Vegas Westside neighborhood and generate income for current and future public housing projects.
The Housing Authority is interested in acquiring the site at West McWilliams Avenue and West Bonanza Road and partnering with a private entity to develop a mixed-use “live-work-play community,” according to a summary of the proposal presented today at the Housing Authority Board meeting.
The redeveloped property would include additional affordable housing and supportive services for area residents, as well as a casino and restaurant that would pay homage to the Moulin Rouge Hotel, known as the first integrated casino in Las Vegas.
The project would bring needed economic development to the Westside and would financially benefit the Housing Authority, as the agency would generate income from gaming activities at the casino, said Housing Authority Executive Director Chad Williams.
Because federal money from the Department of Housing and Urban Development is no longer a steady, reliable source of funding for the Housing Authority, revenue generated from the project could support the agency's efforts to improve existing affordable housing in Clark County and build new affordable properties, Williams said.
“We have to look to the future to generate additional revenue, and this was one of the additional opportunities that I believe is a winner for us,” he said.
At least two private developers have also expressed interest in purchasing the Moulin Rouge site: Nevada Restaurant Services Inc., the company that runs Dotty’s taverns, and Delaware-based company Anderson Capital Fund.
Nevada Restaurant Services’ interest in acquiring the property is mentioned in a recent settlement agreement reached between the company and the city of Las Vegas, which the City Council approved at its June 19 meeting. The agreement states that if the company were to pursue the property, city staff would “waive any civil penalties imposed on the MR (Moulin Rouge) property.”
The Moulin Rouge opened in 1955 and operated in various capacities until 1997. It was placed on the National Register of Historic Places in 1992. Fires damaged the building in 2003, 2009 and 2017, when the city finally demolished what remained of the property.
The vacant lot that now makes up the Moulin Rouge site is currently owned by a trustee, Williams said. Anyone looking to purchase it would owe Las Vegas $2 million in hard liens associated with demolition costs borne by the city and $2.1 million in civil penalties, said Housing Authority Board member and Las Vegas Ward 5 City Councilman Cedric Crear.
The city could waive the civil penalties, but only under the right circumstances, said Crear, whose ward includes the property.
“Whomever purchases it is going to have to come to the city and make a proposal for what they’re going to do,” Crear said. “Anything that comes into my office is going to have to provide some type of return on investment to the community in order for those fees to be mitigated.”
Housing Board members expressed some skepticism about Williams’ proposal to purchase the property.
“In my opinion, we’re kind of going out of our scope to wage the gaming industry and so on and so forth,” said Sanje Sedera, vice chair of the Housing Authority. “I think we should look at our resources and make the best use of them.”
Board member and Clark County Commissioner Lawrence Weekly noted that the Housing Authority has a crucial role to play in the development of affordable housing in Clark County, which faces a severe shortage of affordable homes. But he questioned whether the authority should instead focus on resolving its $150 million maintenance deficit.
“I was really alarmed at the last meeting we had, where we talked about the millions of dollars of structural damages we’re struggling with at this point,” Weekly said. “People are living in conditions where the immediate attention needs to go there now.”
Board member and North Las Vegas Councilman Scott Black applauded the Housing Authority for seeking creative ways to generate revenue and increase the region’s affordable housing stock.
“This is a really unique proposal and opportunity, dealing with a sensitive location of high historical and significant value to our community,” Black said. “I agree that we need to have a robust discussion about this.”
John Hunt, legal counsel for Anderson Capital Fund, shared with the board his client’s vision for the site. Anderson Capital Fund recognizes the historical significance of the Moulin Rouge and would come up with a “long-term plan for redevelopment of the area,” he said.
He added that the company could be open to a partnership with the Housing Authority in redevelopment of the property.
No one from Nevada Restaurant Services spoke at the meeting about the company’s proposal for the site.
Former Assemblyman Harvey Munford, a longtime Ward 5 resident, said he believes that the neighborhood would be better served by a mixed-use, privately owned property that would include a casino serving the neighborhood’s sizable black community.
“We have enough HUD housing in our community and fixed-income residents, but we can help them with economic development,” Munford said.
Katherine Duncan of the Ward 5 Chamber of Commerce said the redeveloped Moulin Rouge should reflect the African-American history of the former hotel. She would support redevelopment led by the Housing Authority or by a private entity so long as the community was sufficiently involved in the process.
“We believe strongly that it should be back as an Afro-centric resort — that it should not be in the ownership of white people,” Duncan added.
The Housing Authority has not laid out a timeline for acquiring the property, Williams said. But the board plans to hold additional public meetings about the proposal and obtain more input from public housing residents and the Ward 5 community in the coming months.
