Deal reached on blighted shopping center

Erin Neff

Thursday, Sept. 21, 2000 | 10:47 a.m.

A blighted and closed shopping center will be bought by the city of Las Vegas Redevelopment Agency for $2.9 million, and the seller will pay for the necessary environmental cleanup, under an agreement approved Wednesday by the City Council.

A huge cheer emerged from the room behind the City Council dais after the board's vote was flashed on the screen. Nearly each council liaison has fielded questions about when the city will buy and clean up the former Wonder World shopping center at Decatur Boulevard and Vegas Drive.

The agreement reached Wednesday between the city Redevelopment Agency and Rossmore Development requires the seller to deposit $346,000 in an account and pick up $100,000 in environmental insurance to cover unforeseen costs.

"Any cost overruns shall be borne by the seller," said Lesa Coder, the city's director of business development.

The sale agreement was postponed two weeks ago when council members expressed concerns that a known benzene spill at the site could become costly to clean.

Both Coder and City Attorney Brad Jerbic told the council there is never a "100 percent guarantee" that the city won't end up bearing some costs. But they both said the agreement reached Wednesday was the best that could be negotiated given Rossmore's need to close escrow by Oct. 1 to free up money for another project.

"We want to get this thing cleaned up as much as you do," Dave Johnson of Rossmore said.

In a letter to the city, Pentacore Resources determined one well was impacted by the benzene spill.

"Methyl Tert-Butyl Ether (MTBE) was detected in one well at a concentration of more than 1,000 micrograms per liter," Robert Thompson, Pentacore's senior project manager, wrote to the city. "Based on these findings, there is evidence to suggest that MTBE has migrated offsite onto the city of Las Vegas property."

Johnson said he had received a $180,000 estimate to remediate the site in accordance with all state and federal environmental standards. The $346,000 is believed to be the most any cleanup could cost.

The council approved the agreement 5-0 with Councilmen Michael McDonald and Michael Mack abstaining. Mack's brother owns property nearby, and McDonald's parents live nearby.