Agency won’t use eminent domain for Stratosphere

Bill Gang and Denise Cardinal

Friday, March 27, 1998 | 1:30 a.m.

The Las Vegas Redevelopment Agency conceded today that it has no intention of using its eminent domain powers to seize two parcels of land once earmarked for future expansion of the Stratosphere Tower.

Redevelopment Agency attorney Mark Wasser said the city has no use for the 1.5 acres other than for the Stratosphere's use, which is in limbo because of a bankruptcy, a massive reorganization and a pending sale.

The big picture for the land owners, however, remains fuzzy until after a May 15 hearing in U.S. Bankruptcy Court.

Ballots were mailed to Stratosphere creditors Wednesday that could determine the future of the resort.

Wasser indicated in a District Court hearing that there remains a crack in the door that the parcels on Main Street north of the resort could still be targeted at some future time if the Stratosphere needs them.

While the redevelopment agency had suggested the land was necessary for a third hotel tower, Stratosphere bankruptcy attorney Gerald Gordon said the resort "never had any intention to build a third tower on the property."

But he noted that the resort owns property on either side of the plots that house commercial building which are sitting largely unsued because of the uncertain nature of the redevelopment plan.

Attorneys for the owners have indicated they will seek compensation for the loss of business during the four years the city has tied up their property in its redevelopment efforts.

"It's a human tragedy," said attorney Grant Gerber of Elko, who represents property owner Paul Moldon. "This (rental property) is Moldon's major source of income and it has been empty since the beginning of 1995."

Mayor Jan Jones had been subpoenaed to appear at today's hearing, but District Judge Joseph Pavlikowski decided her appearance was unnecessary.

Over $1 million sits in a Stratosphere bank account to deal with its past efforts to acquire land for the resort.

Jones, usually a staunch supporter of the city's use of eminent domain, told the SUN Wednesday that if the Stratosphere doesn't want the land for an expansion, she doesn't see the need to take it or continue the court case.

"When I heard the Stratosphere didn't want the land anymore, I don't see why we need to fight these battles in court," she said. "If they don't want it, then I don't want it."

The case has been on appeal since Pavlikowski ruled the redevelopment agency's attempt to take the land in 1995 was illegal. The Redevelopment Agency appealed the ruling to the Nevada Supreme Court, which sent the case back to Las Vegas for a hearing on the future of the Stratosphere and the city's intent if expansion doesn't occur.

Wasser emphasized after the hearing that "The redevelopment agency isn't acquiring this property for the Stratosphere. It is acquiring it for redevelopment reasons and the entire community."