Downtown life on the rise

Erin Neff

Monday, April 12, 1999 | 11:24 a.m.

With thousands of casino workers commuting into downtown Las Vegas each day, a new use is being seen for the Union Pacific and Lehmann Brothers property -- housing.

This 168-acre parcel -- enough vacant land to recreate downtown from scratch -- has always been talked about as ideal for cultural centers, parks, and commercial and entertainment uses.

But a favorable housing market study, still in draft form, suggests high-rise residential development on the property is not only feasible but key to downtown's ultimate survival.

The study, commissioned by the City Centre Development Corp. and prepared by Economics Research Associates (ERA) of San Diego, suggests the Union Pacific site be touted as a new residential market.

Angelina Joseph, who works as a cocktail waitress in a casino downtown, is the kind of potential tenant that marketing would woo.

"As it is now I walk to the bus station after work and ride 35 minutes home because I don't see any decent places to live close by," Joseph said, carrying a duffel bag with her work uniform from Fremont Street to the Downtown Transportation Center a few blocks away. "I would love to live in a downtown with nice stores and restaurants nearby."

The Union Pacific land is the only place downtown with enough size to encourage urban-style housing without requiring government subsidies to offset the high costs of the project, according to the study. A housing project needs at least 16 acres to be economically feasible, the study says.

Because property within the Union Pacific site could be bought as a block -- avoiding the expense of acquiring the land from multiple owners -- the housing could be built for less money, said William Anderson, vice president of ERA's San Diego office.

City Councilman Arnie Adamsen, who is running for mayor, said he's always believed there was a market for high-rise luxury apartments downtown, but he cautions against subsidizing them or developing too many.

"I would not want to see the entire UP site as high-rise," Adamsen said. "We think that development will probably occur naturally because of the critical mass we're creating downtown."

That critical mass -- developments under way including the $99 million Neonopolis entertainment center, the $90 million federal building and the $84 million Regional Justice Center -- will create jobs and draw more professionals downtown, according to Mark Paris, president of the Fremont Street Experience.

"It's definitely part of the process," Paris said. "The new jobs downtown will have workers who want services and places to live nearby."

Anderson and city officials also envision high-rise apartments for senior citizens, artists and downtown workers like Joseph.

With 40 percent of downtown's population working the casinos or service industry, those employees are "typically a natural niche market for downtown housing," the study states.

Most casino jobs have salaries between $22,000 and $35,000. The study suggests that employees with jobs dependent on tips -- like cocktail waitresses and 21 dealers -- "do rent fairly high-end rental housing rather than buy a home."

Part of the revitalization of San Diego's Gaslamp District -- from crime-riddled skid row to yuppie-appreciated land value and character -- involved having enough services and amenities nearby for new residents.

That's the type of model Las Vegas should follow, according to the study. Grocery stores, dry cleaners and florists, for example, should be allowed near any residential high-rise.

Development, including Neonopolis, the federal building, the Regional Justice Center and a 10-story office planned by developer Opus West for a portion of the Union Pacific site, will lead to significant increases in the population of downtown workers, estimated now at 65,000.

Over the past 10 years, downtown's population has remained stable between 35,000 and 40,000 despite the massive growth around it. Downtown comprises 3 percent of Clark County's overall population.

The study suggests that the lack of housing development has held back residential growth in the downtown area.

Campaige Place, the city's first single-room-occupancy project, is under construction on Eighth Street between Stewart and Ogden avenues. The $12 million project developed by Tom Hom Group of San Diego, will provide 320 dorm-like units.

Expected to open in December, Campaige Place, and the Stewart Pines Senior Apartments that are expected to open in August, are the only new projects under way downtown. Elsewhere in the city's limits, however, a total of 7,450 units were either under construction or in the final pre-construction planning stages in 1998.

City Councilman Gary Reese said he would support any downtown infill development in his ward that would create more housing.

"There really is such a big need for nice places to live," Reese said.

Planners are examining ways to convert the former Fifth Street school into something of a town center when Metro Police moves out of the 60,000-square-foot building.

Galleries, a farmer's market and afternoon concerts -- all planned for that site -- are considered important services for a livable downtown.

Creation of an arts district, likely behind the Arts Factory at Charleston and Casino Center boulevards, could lead to a new type of downtown resident -- the artist.

Drawing from a base of downtown workers, artists, senior citizens and newcomers to Las Vegas looking for transitional housing, the study suggests the housing market can support about 200 new units downtown each year.