Goodman threatens action on Neonopolis

Erin Neff

Friday, Aug. 11, 2000 | 10:22 a.m.

Las Vegas Mayor Oscar Goodman seems poised to lower the boom on the stalled Neonopolis entertainment project if he doesn't see movement by the developer in the coming weeks.

Goodman said Thursday he believes "there comes a time when the city has to act."

And Prudential Insurance Co. of America's pledged financial backing alone isn't enough for him to allow the city's $32 million investment in the project to sit idle.

"Unless I get some satisfactory answers soon, I'm being pushed into a corner, and I'm going to act," Goodman said during his weekly press briefing.

How does he define "soon?"

"Soon was last February," Goodman answered, referring to the initial deadline he gave for the $99 million entertainment complex to find a new anchor tenant.

Neonopolis was originally supposed to open Thanksgiving weekend this year with a multi-screen movie theater on the third floor and two other stories of shops and restaurants set below.

But the project's signed anchor tenant, Mann Theatres, withdrew from Neonopolis last fall after its parent company filed for bankruptcy protection.

That setback left Neonopolis without any tenants and forced developer World Entertainment Centers to delay construction.

But the city went ahead with its construction of the parking garage, finishing the two-story subterranean structure late last year. Prudential haggled over the parking garage for months, delaying the payment of a $9.8 million letter of credit owed the city.

After that check was cashed by the city, developers had 90 days to begin construction on the retail portion of the center. That time period expired last month.

Goodman said he planned to meet with representatives of the project next week for a status report, and he may be forced to make a major decision on Neonopolis if he isn't satisfied with the developer's progress.

Sources tell the Sun that developers are negotiating with Resort Theatres of America -- a Los Angeles-based premium theatre chain -- to anchor the project.

Although communication isn't flowing freely from anyone involved in Neonopolis, Goodman is talking with excitement about other potential development downtown.

Worldwide Wireless Network is negotiating with Union Pacific Railroad to bring a high-tech office to a small portion of the 178 acres the railroad owns adjacent to the Spaghetti Bowl.

The wireless firm was courted by a dot-com company that has been negotiating with both the city and Union Pacific to create a high-tech campus on a portion of the land.

Goodman also said he has talked with former Southern Nevada Community College President Richard Moore about the possible conversion of the post office on Stewart Avenue into an arts school.

The city is negotiating with the General Services Administration to acquire the post office.