City mulls proposals for downtown land

Diana Sahagun

Tuesday, June 26, 2001 | 11:44 a.m.

Four would-be developers of 61 prime acres downtown spent four hours Monday presenting their ideas to the Las Vegas City Council.

Mayor Oscar Goodman, who, though pleased with the proposals, said city leaders are open to the possibility of restarting the process.

The developers will return to City Hall on July 5, when the City Council will either choose a master developer or head in another direction, Goodman said.

"It's either going to be fish or cut bait, or we're going to look for another fish," Goodman said. "I would like to make a decision on the four developers or open it up for additional considerations."

A decision had been expected Monday. However, after hearing the four proposals, City Councilman Lawrence Weekly said he did not feel ready to decide. "I feel there's a possibility there might be something else out there that we haven't seen yet," Weekly said of the four projects. "I was impressed with the presentations, but I want to make sure we're making a good investment."

Weekly also was discouraged that three of the four developers were asking for money from the city. Only Las Vegas Studio Development Inc. did not ask for public financing.

Goodman's vision of the developed land would include a high-density residential project, an academic medical center and a cultural arts center.

Council members Larry Brown and Lynette Boggs McDonald recused themselves from the vote; Brown is a consultant for the Las Vegas Area 51s minor league baseball team, which is owned by a company proposing a sports arena, and Boggs McDonald works for the University of Nevada, which would be involved in the medical center.

Goodman was seemingly displeased with the fact that Millennium City Inc. has decided not to apply to become the master developer, as the city requested. Instead, the company has decided to work with whatever master developer is chosen. Millennium developers Jack Kashani and Shawn Samson are developing the nearby 57-acre furniture mart project, and the company wants a hand in the 61 acres, as well.

"If the opportunity is not seized now to create a cohesive master plan between the two parcels, we're afraid this is going to be an opportinity lost forever," Kashani said.

Samson was the original developer of the Mall of America in Bloomington, Minn.; Triple Five Development, which is part of Millennium, holds a stake in that project.

Although the developers have agreed to pay for the infrastructure, parking, roads and landscaping, they are asking that the city return to them a portion of the property taxes.

A proposal by Held Corp., which is designing an academic medical campus for the University of Nevada School of Medicine, has piqued the interest of council members.

John O'Reilly, who represents Held Properties Inc., said the company has developed high-rise medical buildings across the United States, including the University of California, Los Angeles Medical Plaza.

Robert Held, president of Held Properties, said his vision is a "city within a city" with a centralized park and high-rise buildings.

The project would include the University of Nevada Academic Medical Center, Las Vegas Performing Arts Center and a transportation center. The developers are asking the city to fund land costs, parking structures, tax increment and a park.

James Reid, president of Las Vegas Studio Development, said startup and operating costs associated with his proposed film studio complex would be obtained through "conventional financing."

"The lack of studio space in California will create a new economy for Las Vegas," said Reid, who is asking for at least 22 to 25 acres.

A proposal by Southwest Sports Group is a favorite of Councilman Gary Reese, though he doubted the city could attract a professional sports team in the near future.

The company is proposing a new home for the Area 51s, who under the plan would move from Cashman Field to a 12,000-seat downtown arena.

"We want to create the type of energy created by sports complexes," Mike Cramer, chief executive officer of Southwest Sports Group, said. "What energizes these downtown areas is to have a use that people want to come for."

Cramer said in all likelihood the company would not build the arena without a commitment for city funding.

Goodman has lobbied to bring a professional sports team to Las Vegas, but he said the arena concept cannot be realized if it is dependent on public funding.

"I made a promise I wasn't going to spend taxpayer money to fund an arena, especially when it's up in the air if it would be successful," Goodman said.