Deadline set for purchase of building leased to city

Bill Gang

Tuesday, Dec. 22, 1998 | 11:29 a.m.

District Judge Mark Gibbons has set Jan. 20 as a drop-dead date for a leasing company to follow through with its long-awaited purchase of an office building where the city of Las Vegas rents space.

The case has been dragging on through repeated court hearings for a year as United Municipal Leasing Corp. has tried to coerce the city into renegotiating its lease for 731 S. Fourth St.

The city is halfway through a five-year lease and has a five-year option to extend. United Municipal has indicated it would prefer a 20-year lease, which would make the building more attractive to other investors.

The city, which houses planning and developmental offices there, has spent $1.5 million on improvements to the building, which it would lose were it forced to move.

When United Municipal made its offer to the building's current owner, 730 Limited Co., the city had a right of first refusal, meaning it could have bought the building instead. It refused the option.

Once United Municipal started pressuring the city to renegotiate the lease, the city fought back, going to court claiming it still had a right to first refusal.

Gibbons, however, disagreed, and the city dropped that claim while still refusing to renegotiate the lease.

United Municipal countered with a request to the court to establish that it can evict the city if the sale goes through.

Gibbons declined that request as well, saying the only choices are for United Municipal to go through with the purchase and take its chances or abandon the plans.

The city's latest strategy was revealed at a recent hearing, when attorney Todd Bice, representing the city, said he doesn't believe United Municipal has the money for the purchase and challenged the company to proceed with its purchase.

United Municipal attorney Matthew Callister said the firm just wants to ensure the city remains as a long-term tenant under a new lease -- making the building an attractive property for resale.