Formation of improvement districts viewed as route to revitalization

Saturday, Aug. 22, 1998 | 5:46 a.m.

Times Square's fashion district has one. So does Hollywood's entertainment zone and San Diego's Gaslamp Quarter.

Those famous tourist attractions and about 400 other areas around the country have been revived through business improvement districts. Businesses within those districts pay a separate assessment that can go toward such needs as beautification and increased law enforcement, all with the intent of making themselves more attractive to the public.

Nevada is one of the few states in the country without such districts. But business people from Las Vegas and Reno hope to convince the 1999 Legislature to pass legislation that would allow the downtowns of both cities to create such zones.

The Southern Nevada effort is being spearheaded by the Downtown Las Vegas Partnership, a group of men and women who hope to play a role in redevelopment efforts. The partnership attempted to get the legislation passed last year, but the session ended before supporters could draft a workable bill.

Las Vegas attorney Ed Bernstein and Jeanne Hood, former president and chief executive officer of the Four Queens hotel-casino, are among the partnership members pushing for business improvement districts downtown.

"The city could do more to attract smaller businesses downtown," Bernstein said. "A business improvement district is a key. If you took landowners on each side of Fremont Street and said, 'Let's assess ourselves $100 a month and we'll get additional security guards to get rid of the prostitutes,' that would create an environment to do business.

"Most of the downtowns that have been cleaned up in the past 10 years have done it with business improvement districts. They provide money to areas that need it."

Hood said there is widespread support among local businesses for such districts in Las Vegas.

"The citizens, if they formed a district, would take an active, aggressive interest in policing their own neighborhood," Hood said. "Even those who don't want to participate would feel the benefits."

State Sen. Ann O'Connell, R-Las Vegas, chairs the Senate Government Affairs Committee that would likely consider the legislation. She expressed reservations, particularly if it meant compelling businesses to participate in a district against their wishes.

But Bernstein said business improvement districts are formed and levy assessments only if a majority of its businesses agree to participate. The majority-rules scenario means some landowners may be included against their will, but he didn't see that as much of a problem.

"One of the problems downtown is that we have a lot of out-of-state landowners, and they don't want to do anything," Bernstein said. "They don't improve their properties or keep them clean. You end up with drug houses and prostitution. But if you're a sophisticated businessman, you'll vote for the district because it will improve your business down the line."