City fights redevelopment proposal

Scott Reeder

Thursday, March 11, 1999 | 11:13 a.m.

CARSON CITY -- Las Vegas city officials came out in force Wednesday to object to legislation that would automatically redirect 5 percent of redevelopment money to blighted neighborhoods, which could use the funds for sidewalk repairs, street lights and other improvements.

Assemblywoman Chris Giunchigliani introduced the legislation to the Assembly Government Affairs Committee. Redevelopment money now is largely used for downtown commercial developments.

The bill also would require city councils to say why it is necessary to condemn someone's property and what private parties may benefit if the government seizes private property under its power of eminent domain.

Las Vegas City Manager Virginia Valentine told the committee the proposed restrictions place too great a burden on the city and could deter redevelopment of some of the community's most blighted areas.

"There are other sources of funds to pay for things like sidewalk improvements," she said. "It doesn't make any sense to take money out of the redevelopment budget to pay for something like a sidewalk. Putting a sidewalk in front of your house isn't going to increase the assessed valuation of your house.

"We want to concentrate our money on things that will increase the overall tax base of the community."

Valentine said the planned Neonopolis shopping complex in downtown Las Vegas is a prime example of the type of redevelopment activities in which the city has excelled.

But Giunchigliani said the city is neglecting some of its poorest neighborhoods.

She cited the Meadows Village area just west of the Stratosphere Tower as one neighborhood lacking basic infrastructure such as street lights and sidewalks in some areas.

Giunchigliani, insisting the city needs to find a way to provide better services to these areas, said the more affluent areas of her district are much better served by the city than the poorer neighborhoods.

Valentine said the city's Neighborhood Services Department would be a more appropriate arm of the city to address the issues Giunchigliani raised.

While Giunchigliani's bill only requires that the city cite why it is "necessary" to use eminent domain to promote redevelopment, Brent Hawkins, a lawyer retained by the Las Vegas Redevelopment Agency, said this could unnecessarily burden redevelopment activities.

"The word 'necessary' is just too ambiguous," Hawkins said. "It invites litigation. Normally, eminent domain issues are handled by the legislative branch of government -- not the judiciary."

Valentine said eminent domain is infrequently used for redevelopment projects.

"When we try to assemble enough properties for a major project, we work with the property owners," she said. "Sometimes there are one or two holdouts who won't sell unless we give them a lot of money. Those are the cases where we think it is appropriate to use eminent domain."

The committee will continue to discuss the bill during its Friday meeting.