Jones: Pauls could still develop UP land

Richard N. Velotta and Denise Cardinal

Wednesday, March 25, 1998 | 10:06 a.m.

The Denver-based Pauls Corp. no longer is under contract to buy 115 acres west of downtown Las Vegas from Union Pacific railroad, but it's still the leading contender to acquire and develop the property.

Mayor Jan Laverty Jones met with Union Pacific Assistant Vice President David Uhrich on Tuesday and got assurances that Pauls is still the top choice to buy the land -- valued at an estimated $120 million. Jones also said Uhrich indicated Union Pacific has no plans to divide the property into smaller units in an attempt to sell it faster.

Jones and Uhrich were scheduled to meet again today.

"Union Pacific is continuing to market the property through CB Commercial and will consider all development proposals that are consistent with the envisioned master plan," a Union Pacific release issued late Tuesday said.

Uhrich originally had planned a media briefing to answer questions about the deal Tuesday afternoon, but canceled it and issued the statement instead.

"This statement confirms that the Union Pacific Railroad Co. is no longer under contract with the development partnership led by Bill Pauls ...," the statement said.

"Concurrently and for the past several months, Union Pacific and the City of Las Vegas have been working closely to prepare a development master plan for the property. The proposed land uses are intended to be both consistent with the city's long-term develop objectives as well as to enhance the marketability of the land."

"Union Pacific is still working with the city's planning department on the (planned unit development) zoning for that parcel," Jones said after meeting with Uhrich. "Everyone realizes that Bill is probably the developer for this."

Pauls signed an agreement to purchase the land from the Union Pacific last year, but a deadline to complete the deal passed. The deadline was extended, but it now apparently has passed.

A spokesman for Pauls' local real estate representative, Stuart Mixer Commercial-Oncor International, had no comment on the latest developments.

The biggest stumbling block in the negotiations between Pauls and the Union Pacific is Pauls' reluctance to tie up funds in the property transaction since it probably would take at least two years to begin construction. Some experts say that could add $30 million to the price in interest expenses.

Pauls also hasn't been able to get firm commitments from tenants to occupy the proposed facility, described as an events center, a performing arts district and a collection of restaurants and shops.

Further complicating the issue is the status of a 61.5-acre parcel between downtown and the Union Pacific land. That land is owned by Texas businessman Paul Tanner, who proposed building a 100,000-seat domed stadium. Foreclosure proceedings are under way on the property and Clark County officials say Tanner is more than $460,000 in arrears on property taxes.

Efforts to obtain comments from Tanner have been unsuccessful.

Jones said the city wouldn't be able to help break any financial logjam. Funds aren't available to subsidize the project, she said, although the city could help negotiate tax breaks or freeway access from Interstate 15, another roadblock in developing the property.

"There is a lot of money involved and everyone wants to be careful and protect their interests including the city," Jones said.