Arena on hold

Lisa Snedeker

Thursday, June 17, 1999 | 12:05 p.m.

Drive past the construction site of The Millennium Arena in North Las Vegas and it doesn't take a contractor to determine the doors won't be open in August for the annual Shrine circus.

That's because there are no doors. Neither are there walls, floors or seats. Within the chain-link fence at the corner of Van der Meer Street and Las Vegas Boulevard North there is a small construction trailer, lots of desert and some tumbleweeds.

No 4,500-seat arena and no signs of construction on the 12.5 acre site, which means it's a safe bet that neither the Shriners nor anyone else will be holding an event there this summer.

In fact, the Zelzah Shrine Temple circus organizers have booked the parking lot at Sunset Station hotel-casino for Oct. 21-24, an event they originally postponed from May to August, anticipating the arena's completion.

A mariachi festival scheduled for September also has been canceled.

Arena developers, who have a 10-year contract with the Zelzah Shrine Temple for the circus, have had trouble financing the $18 million project on which ground was supposed to be broken last October at 2845 Las Vegas Blvd. North.

Reed Mitchell, president and chief executive officer of The Millennium Arena Inc., has been trying to make the arena, which is in limbo, a reality for two years. He describes himself as an airport developer from Colorado who moved to the Las Vegas Valley in May 1997 to build The Millennium.

"We're confident everything is going to come together," he said, adding he has $14.5 million in financing committed to the project, and the remainder in equity.

A spokeswoman from Martin Harris Construction, which is the main contractor for the arena once the prefabricated parts are delivered, confirmed the project is on hold.

Mitchell and his partners are asking the North Las Vegas Redevelopment Agency for a $250,000 grant to offset the proposed 28,917-square-foot arena's permit and inspection fees plus street improvements and the cost of a traffic signal.

The redevelopment agency, which is made up of City Council members and chaired by John Rhodes, voted unanimously Wednesday to allow staff members to begin negotiations on an agreement with The Millennium.

Jacque Risner, the city's economic development manager, said The Millennium has provided city staff members with its financial statements, which now will be sent to an independent financial analyst to review.

"I have always been a supporter of having an arena, but until we look over the finances, I don't know if it's viable," she said. "From all the information we've been given, at first look it appears to be viable. If it is, it will be a tremendous boon for the city."

Mitchell said that financial assistance from the redevelopment agency is "just the expression of support this project needs to finally move forward to completion."

Rhodes said he wants to see letters of credit before the redevelopment agency provides funding for the project that is located in the agency's recently designated downtown redevelopment area.

The arena itself -- a prefabricated custom-engineered steel structure -- will be constructed by American Buildings Co. in Carson City.

Stan Tashiro, regional engineering manager, said the structure is like a large erector set.

"All the components will be sent down to the job site and bolted together by a steel erector," he said. "We're waiting on the developer to say proceed with it."

It will take 30 trucks to transport sections of the arena to North Las Vegas.

In addition to financial setbacks, word around City Hall is that the arena has had some difficulties getting the necessary building permits from the city.

Gary Holler, director of the city's public works department, said, however, that he has not heard from The Millennium developers since December 1998. He said about a year and a half ago the department issued an early grading permit for the arena before the site plan was approved, but now the vegetation has grown back.

"The city is not holding them up. We haven't seen any effort on their part," said Holler, who added The Millennium still needs to conduct a traffic study and provide a bond for $13,467 worth of off-site improvements.

Still owed on the project are the plan check and inspection fees totaling $404.02 and water and sewer connection fees of $30,940 along with the desert tortoise fee and the Southern Nevada Water Authority fees, for a grand total of $73,700. So far The Millennium has paid the city a little more than $2,000, Holler said.

The arena has had a site plan pending since October that has yet to be corrected and returned to the city, according to a spokesman in the city's building permit department.

Mitchell, however, said his architect has returned the revised plans to the city.

"Something will be done within the next 60 days," he said.

Members of the Zelzah Shrine Temple don't seem to mind the wait.

After searching for six years for a permanent home for its circus, they thought The Millennium Arena was the answer to their prayers. The Shriners signed a 10-year contract for $7,500 per day or a total of $22,000, for each circus.

Billy Woods, circus chairman for six years, said the Shrine did not suffer a financial loss because it has not been charged by the arena. The Shriners have only been inconvenienced.

"We just went out and got another location this year," he said. "Hopefully we will have (the arena) next year. We're not going anywhere. We need a place for our circus and that place would be ideal."

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