Kodak may join Neonopolis project

Erin Neff

Friday, April 28, 2000 | 11:37 a.m.

The company most synonymous with film is reportedly negotiating with Neonopolis developers to play a role in the creation of movie theaters at the planned downtown entertainment center.

Three sources familiar with downtown redevelopment confirmed Eastman Kodak Co. is in talks with Prudential Insurance Co. of America to develop some portion of the cinema element planned for the $99 million Neonopolis project.

Prudential also is reportedly talking with a movie theater chain to anchor the Neonopolis complex at Fremont Street and Las Vegas Boulevard.

Kodak's prospective role in the venture is unclear, but it could include using Neonopolis to test digital film technology.

Mike Forche, president of the City Centre Development Corp., said it is essential for Neonopolis to include state-of-the-art theaters because of its downtown location.

"I know they need to draw (theater-goers) from valleywide," Forche said this morning, although he could not confirm Kodak's involvement.

Kodak spokesman Paul C. Allen said he spoke with his company's motion picture division about Neonopolis and could neither confirm nor deny the negotiations.

"They have not signed any letter of intent," Allen said this morning.

Local redevelopment officials and political leaders are all waiting cautiously for Kodak and an anchor tenant to sign leases.

From the time Neonopolis was first proposed, the project has been beset with problems -- everything from upset business owners asked to sell their prime downtown land to leasing troubles and the loss of the original anchor tenant.

"I know who it is, but I'm told I can't discuss it," Mayor Oscar Goodman said Thursday after his weekly press conference. "A hundred people know, but I'm not allowed to say who it is."

Goodman's frustrations with the project come, in part, is because Neonopolis "wasn't on my watch," he said. Since taking office last June, Goodman has been privy only to bad news about Neonopolis.

He also has complained about a lack of communication to his office from the developer, World Entertainment Centers, and from the financier, Prudential.

Goodman was told weeks ago that a prospective tenant signed a letter of intent, although he has not seen the letter.

Joyce Storm of JSS Advisors, who is in charge of leasing Neonopolis for Prudential, did not return messages left for her at her New York office. Robert Gorlow, president of World Entertainment Centers, did not return calls.

"I think they have a signed letter of intent," Forche said Thursday, referring to Prudential's efforts to lease an anchor tenant. "Any written agreement between them has very important conditions that need to be resolved. They have to make sure they're comfortable."

Neonopolis lost its original anchor tenant in September when Mann Theatres was forced to pull out of the project due to the bankruptcy of its parent company, WestStar Cinemas.

Mann had spent roughly $200,000 designing its 11 screens to fit the third floor of Neonopolis. The first two floors of the proposed complex are designated for restaurants and roughly 72 retail stores.

Forche said the next few weeks are important for any prospective anchor tenant to see if Mann's original design works, or whether a different plan is needed.

Changing the configuration of the project to meet the needs of a new tenant like Kodak may require adding two more movie screens and increasing the amount of concession area space.

Until those details are worked out, officials remain quietly optimistic that Kodak will sign a lease.

"That would be great," City Councilman Gary Reese said. "Yes, it's Kodak and that's exciting."

Kodak, based in Rochester, N.Y., is the world's leading supplier of motion picture film and has innovated digital film-based technologies.

In January, the company announced it was investing in IFILM, a leading Internet resource for filmmakers, film industry professionals and consumers. And in February, Kodak became sole sponsor of TeenMovieline magazine, which is distributed at music stores and movie theaters.

Kodak also played a role in two recent conferences in Las Vegas, the National Association of Broadcasters earlier this month and the ShoWest 2000 convention in March.

During ShoWest, Kodak announced an alliance with Qualcomm to develop an integrated digital film system to allow for easier conversion by theaters to digital film projection.

ShoWest attendees argued whether digital cinema will take hold in two or 10 years due to significant obstacles from film distributors and traditional movie theaters, according to reports by Variety.

Since Kodak has never developed movie theaters, it is possible any venture in Neonopolis will include testing digital technology or showcasing films made using Kodak products.

If negotiations with Kodak pan out, Neonopolis will likely have an easier time leasing tenants for the remaining space. Next month's International Shopping Center Expo in Las Vegas is seen as a crucial time for developers to make contact with interested tenants.

Neonopolis was originally supposed to open this Thanksgiving. Conservative estimates now place the opening sometime in late 2001.

Under the agreement Prudential has with the city's Redevelopment Agency, the city was responsible for construction of a 2-story underground parking garage on the site. Prudential is responsible for construction of the actual center.

Work on the garage has been substantially complete for several months, but was only recently certified by a structural engineer that it is sturdy enough for construction of the retail center above it.

The city plans to cash Prudential's $9 million letter of credit on May 8, triggering a 90-day window in which Prudential must begin construction of the retail element.

"I think there's a ways to go before we see some real specifics," Forche said.

Erin Neff covers Las Vegas government for the Sun. She can be reached at (702) 259-4062 or 229-6436, or by e-mail at erin@lasvegassun.com.