City could acquire downtown post office

Diana Sahagun

Friday, Dec. 28, 2001 | 9:38 a.m.

The historic downtown post office could be in the hands of the city of Las Vegas by next month, at least temporarily.

On Wednesday, the City Council will decide whether to direct City Manager Virginia Valentine to apply for temporary possession of the post office while negotiations continue with the U.S. General Services Administration.

The agreement would give the city immediate possession of the building until negotiations are completed with the GSA. At the end of negotiations, the city hopes to be given full ownership of the building, which was the city's first federal courthouse.

According to the agreement, the city would be responsible for operations and maintenance costs for the building, while GSA retains the income from the post office lease.

City officials estimate the agreement could be approved by next month, but it will take an additional three to six months to gain final ownership of the building. If the city is given temporary possession of the building, it would cost $11,470 per month for its upkeep.

If the council decides to apply for temporary possession, $45,000 would be set aside from the city's general fund for operational costs, depending on how long it takes for full acquisition.

Deputy City Manager Steven Houchens said the temporary agreement is the next step in the process that began this spring, when the city started intense negotiations with the federal government to gain ownership of the building, which has been declared surplus and fit for public disposal.

MASH Village, the Economic Opportunity Board, and Nevada Paralyzed Veterans of America had expressed interest in obtaining the building, but reconsidered after some prodding by Mayor Oscar Goodman. Goodman has proposed the building be the home of a museum or art school, and the paved parking lot be turned into a park.

Although GSA has told the city it can have ownership of the building, there are still details to be ironed out.

The GSA wants the city to keep the post office as a tenant, while Goodman wants to relocate it downtown so the city can have full use of the building.

"The sooner we can lock (the deal) up, the better we'll feel," Houchens said. "The sooner we are able to obtain possession of the building, the sooner we can decide what programming we want to put in."

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