One more chance given Shepherd Hills

Erin Neff

Tuesday, Jan. 12, 1999 | 10:28 a.m.

City officials are hoping the fifth time is the charm to get an oft-delayed low-income housing project off the drawing board and into construction.

The Las Vegas City Council on Monday granted Shepherd Hills Apartments Limited Partnership a 45-day extension to secure additional funds to build housing for low-income families at the site of the former Sierra Nevada Arms apartment complex.

Monday's extension allows Shepherd Hills more time to give the city a required official letter from a state-approved lender confirming unconditional financial commitment to the project. This extension, city officials say, will be the last one granted before they seek another developer for the project.

"If we do give them until March 1, they'll still have a chance," Sharon Segerblom, director of Neighborhood Services, told councilmen Monday before the extension was granted.

The history of the delay stretches nearly four years.

In June 1997, the U.S. Department of Housing and Urban Development transferred property to Shepherd Hills Apartments Limited Partnership for $1.

As one of the transfer conditions, Shepherd Hills agreed to obtain a permanent financing commitment for its planned project and begin construction within 15 months.

After the HUD deadline expired last March 6, Shepherd Hills was granted its first extension until July.

On July 28, the city transferred $10.7 million in private activity bonds to the state Housing Division for use by Shepherd Hills to construct a multifamily rental housing project.

When the deadline imposed for bond issuance expired because of the company's lack of financing, the city granted Shepherd Hills two more extensions -- the latter of which expired Nov. 15. The fourth extension was granted Nov. 23 and was to expire Friday.

Councilman Gary Reese said the city has tried to work with Shepherd Hills developers through the delays, and is beginning to grow impatient.

"Let's hope that this is the last one," Reese said as he voted on the extension.

Representatives of Fannie Mae and PW Funding both stated Monday they were willing to back the project financially.

In addition to the $10.7 million in bonds, an additional $300,000 in other city resources is also earmarked for the project, Segerblom said.