Downtown element missing

Diana Sahagun

Friday, Nov. 2, 2001 | 11:24 a.m.

As valley officials and developers tout new commercial projects downtown, a key ingredient to downtown redevelopment seems to be missing.

Las Vegas officials during the past month have heralded the opening of City Centre Place, the first downtown office tower built in more than 25 years, and have welcomed news that 70 percent of the space in the Neonopolis -- an entertainment project scheduled to open in April 2002 -- has been leased.

But new, high-density housing projects are not being built as quickly as some city officials would like.

Las Vegas Mayor Oscar Goodman said that his vision for downtown -- which includes a community rich in the arts and serves as a magnet for attracting business -- cannot be realized until more people are afforded the opportunity to live downtown.

"I'm impatient, and I wish that all these downtown projects were built yesterday," Goodman said. "With any luck, our community will have a lot more options for living downtown before the end of next year."

The San Diego-based Tom Hom Group in March 2000 opened Campaige Place, the city's first single-room occupancy project. Nine months later the company broke ground on two mixed-use housing developments, designed to attract young professionals.

Kirby Lofts and L'Octaine -- less than a mile apart on Las Vegas Boulevard -- were scheduled to open in January 2002. The projects, though, are more than a year behind schedule.

Kirby Lofts, a 276-unit single room occupancy complex -- which includes retail space -- at the corner of Las Vegas Boulevard and Hoover Avenue remains a giant, gaping hole as a result of recent soil testing.

And the site of L'Octaine -- a 51-unit complex featuring studios, lofts and retail at the corner of Las Vegas Boulevard and Gass Avenue -- remains a city-owned parking lot for nearby law office employees.

Will Newbern, president of the Tom Hom Group, said the company remains committed to building the projects, although issues that involve financing have delayed the openings until 2003.

Newbern said the company early this year decided that, rather than pursue traditional financing, it would apply for a loan through the Department of Housing and Urban Development, which offers longterm loans at low interest rates.

"In the longrun, we think the HUD loan gives the project a much stronger financial footing and will make the projects more viable for the downtown area," he said.

The group also received $4.1 million in private activity bonds from the city's Neighborhood Services Department to construct L'Octaine. The bonds, provided through the state, are used by cities to finance new housing.

Construction of L'Octaine, Newbern said, should begin by December; the project development should open at the end of 2002 or early 2003. Kirby Lofts is expected to open in the fall of 2003.

"Everything is proceeding, though at a snails pace," he said.

Sharon Segerblom, the city's director of Neighborhood Services, said building affordable housing is a slow process, particularly because of myriad financing options.

"I don't think it's the economy that caused the delay," she said." Mainly, building affordable housing is not a fast process."

Another housing project, the 300-unit City Center Apartments at the corner of Bridger Avenue and Eighth Street, is also behind schedule, though construction, expected to begin in July, should commence by December. SDA, Inc. is building the apartments.

"There are always glitches with large construction projects, especially those utilizing private activity bonds," Goodman said. "But I'm excited and heartened that none of the housing developers has in any way backed off their commitment to downtown."