Green light for downtown development

Denise Cardinal

Tuesday, July 29, 1997 | 11:20 a.m.

With $6.1 million in legal settlements approved and a private board ready to do the groundwork, the redevelopment ball is once again rolling through downtown Las Vegas.

Mayor Jan Laverty Jones said the movement in the redevelopment agency hopefully will lead to several changes in the downtown corridor in the coming months.

"We're looking at expanding the neon museum, and actually having a specific area for it, like the roof of the (Fremont Street Experience) parking garage," Jones said Monday. "There's talk of taking the Fifth Street School and turning it into a retail/art/entertainment walking space. I really hope you'll begin to see some development."

Part of the way was paved Monday when the council agreed to pay $6.1 million for two of three parcels of land that owners had claimed the city illegally obtained through eminent domain in order to build the parking garage.

Not only does it free up the city, it allows for retail space in the garage to finally be leased. When the $70 million Fremont Street Experience canopy -- a redevelopment project -- opened in December 1995, city officials promised restaurants and shops at the garage, but nothing has happened because of the legal battles.

In addition to the settlements, an operating agreement between the city's redevelopment agency and City Centre Development Corp. was given the OK. The agreement solidifies the city's plan to have CCDC, a board made up of local business owners rather than city officials, do the dirty work for downtown redevelopment projects.

"What you find in redevelopment is that it's a particularly aggressive movement," Jones said. "City staff isn't always equipped with knowledge and negotiating expertise. Private sector individuals with backgrounds in real estate and land development are a much more powerful tool."

Under the agreement, CCDC will have the authority to hire consultants and staff, submit a proposed budget and make recommendations to the City Council regarding development agreements and land acquisitions. The board of CCDC, appointed by the council, still has two of the seven spots open.

The five appointed: Thomas Schoeman, president of JMA Architects; Doug Todoroff, head of Mercier Management Co.; George Kunz, owner of six McDonald's franchises throughout the city; attorney Jodi Goodheart; Jack Sommer, a developer and chairman of the Aladdin hotel-casino; and Peter Thomas of Thomas & Mack Co.

Another redevelopment measure approved Monday reduces the redevelopment agency's tax rate from $3.049 to $3.0268 per $100 of assessed value. The reduction is a change forced on the city by the 1997 Legislature. According to the new state law, the redevelopment agency can't receive property tax revenues from any bond debt or tax override that was approved on or after Nov. 5, 1996.

But rather than decrease the agency's budget, another bill passed by the council has actually led to an increase in its budget. At the July 14 meeting, the council allowed the agency to get bids on a reserve fund float agreement, which would give the redevelopment agency its reserve fund interest up front, rather than collecting it over 10 years.

As a result, the agency has seen an increase of $4,259,558. The funds, said Deputy City Manager Steve Houchens, will be used to help start up CCDC, which will have a staff in addition to the board members. Part of the money will be used to pay for the garage settlements.