Builders seeking permits to start Neonopolis

Erin Neff

Monday, Aug. 21, 2000 | 11:22 a.m.

Neonopolis developers have requested building permits from the city of Las Vegas to begin construction of the long-delayed entertainment center downtown.

The request comes at a critical time for the proposed $99 million urban-entertainment facility. Las Vegas Mayor Oscar Goodman is pledging to take action if something doesn't happen soon.

"They have asked for permits," City Manager Virginia Valentine said. "They have some remaining issues with finalizing the construction, but it looks as though they're ready to start."

Building and Safety Director Paul Wilkins said he is waiting for a report from a special inspector and sign-off on the design from city planners before issuing the permits.

"I have a few concerns with the basement," Wilkins said. "Whenever a basement is constructed first on a multistory building, it's important to have a special inspector look over it."

The city cleared the lot and built a two-story subterranean parking garage at Fremont Street and Las Vegas Boulevard at a cost of $32 million.

Neonopolis developers, World Entertainment Centers and Prudential Insurance Co. of America were required by contract to pay the city for its work and begin construction on the retail portion.

On March 22 an engineer certified the garage was complete, and the city asked for a $9.6 million letter of credit from Prudential, per the agreement.

The city and Neonopolis developers haggled for the next two months over the safety of certain bolts used in the garage's construction. On May 16, Neonopolis agreed the garage was complete and paid the city.

That payment, in turn, triggered a 90-day deadline for Prudential to begin construction.

With the project already more than 18 months behind schedule, Goodman has grown frustrated with the delays and a lack of communication from Prudential's representatives.

The project, originally scheduled to open this Thanksgiving, was delayed last year when its anchor tenant, Mann Theatres, pulled out because of the bankruptcy of its parent company.

Since that time developers have had no success inking a replacement theater tenant, and other retail and restaurant tenants won't sign contracts until an anchor is named.

"If we don't get something soon, I will take action," Goodman said last week.

Four weeks ago Goodman was told to expect a "major announcement" from Neonopolis by the end of the week.

He's still waiting.

Joyce Storm of JSS Advisors, who is leasing Neonopolis, said she is confident construction will start by the end of the year on the three-story retail portion.

"We're closing out the construction and the turnover of the garage with the city," Storm said this morning in New York. "Once those issues are resolved, we're ready to start construction by the end of the year."

Storm said she cannot comment on any specific leasing efforts, except to say, "We have a lot of strong conversations going on."

Sources tell the Sun that Neonopolis has a tentative deal with Resort Theaters of America to anchor the project. Resort Theaters, headquartered in Los Angeles, is an upscale cinema chain with theaters in Colorado, Utah and California.

Eastman Kodak Co. of Rochester, N.Y., is also reportedly interested in working with the theater tenant to showcase state-of-the-art digital film technology at one of the theaters.

Neonopolis will have a 14-screen multiplex on the third floor, with restaurants and retail spanning the rest of the blocklong project.

Even if construction begins by the end of the year, construction is expected to take a full year -- pushing any opening into 2002.