Bank commits $100 mil. to downtown projects

Erin Neff

Friday, Sept. 29, 2000 | 10:55 a.m.

Downtown Las Vegas redevelopment efforts received their biggest economic boost Thursday when a subsidiary of one of the largest banks in North America committed $100 million in financing.

Canadian Imperial Bank of Commerce World Markets Corp. pledged $100 million in financing to prospective developers of downtown projects, provided the developers meet certain underwriting and credit requirements.

"We're committed here," said Kevin B. Swill, executive director of CIBC's real estate finance division, during Las Vegas Mayor Oscar Goodman's weekly press conference Thursday. "We would love to be the lender of choice for any development that comes."

World Markets' commitment is extended on the arm of one of the leading global investment banking, securities brokerage and asset management firms in the world.

CIBC is the second-largest bank in Canada and the eighth largest in North America. Its investment subsidiary, World Markets, has $182 billion in U.S. assets.

"This once again shows that we're on the right track," Goodman said. "People from all over are beginning to believe."

Swill said that while prospective developers do not have to go through his firm, CIBC World Markets does offers certain advantages.

"We have product that's already out there," Swill said, referring to CIBC World Markets' 10-year presence in the Las Vegas market.

CIBC World Markets has already committed to funding the high-tech office complex planned on 10.64 acres of Union Pacific land downtown.

Union Pacific has signed a letter of intent to sell the city the land for that project for $4,287,000 -- based on $9.25 a square foot. The city will then sell the land to LVDT Redevelopment LLC for the same price.

AT&T plans to invest in infrastructure for the project and Cisco Systems is considering an advisory role in a planned dot-com incubator developed by Worldwide Wireless Networks.

Swill said his firm is excited about backing that project and thinks other developers will appreciate CIBC's ability to offer a sort of one-stop shopping for permanent financing, construction and bridge loans.

"One of our aspects is that we can close a deal within three weeks," Swill said.

Although the company has U.S. offices in New York, Chicago, Dallas, Los Angeles, Atlanta and Newport Beach, Calif., it is looking to expand its presence in the western United States.

"We just feel that now is the right time," Swill said. "Now we want to focus on this area."

Goodman interrupted Swill to correct the New York-based executive's pronunciation of the state's name as "Nev-ah-dah," but had only praise for the company's commitment.

"This is another stamp of approval of what we're doing downtown," Goodman said.

CIBC is targeting its $100 million lending pledge to projects on the 200 acres of undeveloped land downtown, west of Main Street and east of Interstate 15. The site includes the 61.5 acres the city hopes to obtain next week in a land swap with Lehman Brothers and about 140 acres owned by Union Pacific Railroad.

Swill said once prospective developers have discussed tentative plans with either the city or Union Pacific, CIBC will be willing to discuss lending options with those developers.