Another extension sought for downtown project

Jeffrey Libby

Tuesday, July 17, 2001 | 11:03 a.m.

Developer Phyllis Thompson told staff members of the Henderson Redevelopment Agency in a closed-door meeting Monday that she has not secured financing for her planned $27 million downtown redevelopment project.

Thompson asked staff to recommend a roughly three-week extension at tonight's redevelopment agency meeting despite her failure to secure loans during a 60-day extension granted in May.

With an extension, Thompson said she is confident she can obtain letters-of-intent from two lenders, Las Vegas attorney Douglas Malan said. If successful, the much-delayed 105,000 square-foot commercial complex would be the first large development to break ground in downtown Henderson since the city's redevelopment agency was formed in 1995.

But City Council members have said on several occasions that they will uphold Monday's deadline. City Council members, who double as officers for the redevelopment agency, granted the 60-day extension "in good faith," Councilman Andy Hafen said Monday.

The extension was approved with the understanding by everyone that it was the last extension, he said.

"The general feeling at that time, when we gave them the 60-day extension, was that unless there was a really compelling reason, there wouldn't be another extension. But we'll have to wait and see what they have to say at the meeting tomorrow to be fair," Hafen said.

Thompson first proposed the Fountain Plaza project in January 1999. Since that time, she has received several extensions to meet obligations of her contract with the city.

Those types of delays are not unusual in redevelopment efforts, agency manager Bob Wilson said this morning.

"More often than not, these things take a long time," Wilson said.

But he called the project "sensitive enough" at this stage that staff members handed Thompson's proposal directly to a city attorney for review. The City Council will do all of the talking tonight, he said.

Thompson declined comment following the 30-minute meeting, referring questions to her attorney.

"We have keen interest from two solid lenders," Malan said. "We've shared that interest with the city today. They're evaluating a proposal, as are we, and hopefully they'll find, and we'll find, something in it that merits a little more time and attention. Fundamentally, we think the concept (of Fountain Plaza) for the downtown is a winner."

If the City Council is willing to grant an extension and Thompson is able to secure a letter-of-intent from lenders, it would still be another eight to 12 weeks before a loan could be secured, Malan said.

"We just hope to get a little leniency," Malan said.