Pot of gold still sought in planned downtown redevelopment project

Erin Neff

Friday, Oct. 6, 2000 | 11:26 a.m.

It was hyped as a fresh start, a reception to breathe new hope into an old promise -- Neonopolis.

And while Thursday's event at the planned project's new leasing office resulted in no announcements about tenants, it did give others faith that the retail center will add to downtown's redevelopment.

Simply put, downtown needs it.

"All the investment and all the opportunity for development has been on the Strip, and downtown has to have their commitment," said Daniel Shumny, vice president of sales for the Golden Nugget hotel-casino.

Shumny and Greg Yochum, general manager of the Lady Luck, looked through Neonopolis marketing kits and hoped the delayed project does rise from the fenced block at Fremont Street and Las Vegas Boulevard.

"We're all just interested in downtown and what's going on with the project," Yochum said, then asking: "What's going on with the project?"

Depending on whom you ask, Neonopolis is either heading for glory or still mired in its beleaguered past.

Chardell Steves, who is now in charge of leasing the $99 million entertainment retail center, said Thursday's reception was designed "to re-introduce the project to the media and the brokers."

"Since January, the only press that's been written about this project has been negative," Steves said. "I think by having something like this and allowing us to come out in our way, it helps us change that message."

Steves said Neonopolis owner Prudential is in "final documents with quite a few tenants." She said written communication with a prospective anchor tenant also is in the final leasing stages, and that she expects tenant announcements to be revealed within about 30 days.

"We're going to put steel into the ground in early November," Steves said.

November was actually the month Neonopolis was supposed to open to the world with 16 movie screens, restaurants and 3-stories of retail. The city spent $32 million constructing an underground parking garage on the block and has been waiting about 10 months for construction of the retail component to begin.

Neonopolis stalled in September 1999 when its anchor tenant, Mann Theatres, pulled out of the project due to the bankruptcy of its parent company. Even before that development, Neonopolis leasing efforts were stagnant.

Ever since developers have discussed pending announcements and upcoming developments, which never came to fruition. Sources have told the Sun that Neonopolis is negotiating with Resort Theaters of America -- a Los Angeles-based chain of exclusive theaters.

Construction is expected to take about 12 months, putting any opening of the project off until late 2001.

Bill Balkovatz and Rhonda Panciro, regional leasing directors for the Pauls Corp., hope Neonopolis can help them fill the City Centre Place office tower under construction.

"It's a good amenity for the office component," Balkovatz said. "We're excited to be downtown and this bodes well for us."

Thursday's reception came with catering, a hosted bar and entertainment from a troupe of "neon people" from Earth Circus Productions in Half Moon Bay, Calif.

Organizers were waiting with hope that Las Vegas Mayor Oscar Goodman would show up to lend support to the project. He arrived late from another event, but still buoyed hope that he is committed to Neonopolis.

In the past, Goodman has threatened to pull the plug on the project. However, he is advised that any action by the city would simply lead to lengthy legal trouble that would leave the pivotal downtown block in limbo.

"Apparently they're going to be engaging in a very active campaign," Goodman said Thursday morning. "I want them to know that bygones are bygones."