Furniture mart, retailers may be near agreement

Diana Sahagun

Friday, Aug. 9, 2002 | 9:25 a.m.

After days of negotiations, a group of local retailers appears to have worked out its concerns with developers of a proposed downtown furniture mart.

During Wednesday's Las Vegas City Council meeting, the two parties were unable to agree on terms of an agreement that would allow the developers to hold clearance sales at the end of trade shows.

The retailers' concerns that retail sales would hurt their businesses stalled action by the council on an agreement that would have given the developers an expected $40 million in tax rebates over 20 years.

After working well into the evening on Wednesday, both sides apparently emerged satisfied with additional restrictions on the developer that would allow clearance sales on the 57-acre project proposed for west of downtown Las Vegas.

"I believe we've worked out most of the key issues," said Daryl Alterwitz of nearby Walker Furniture. Alterwitz added that he was waiting for the latest copy of the proposed agreement.

Attorney Richard Jost, who represents the furniture mart developers, said he was optimistic that both sides were in agreement. But he added that nothing is final until the documents are signed.

"We reached an agreement on every issue," Jost said. "But like any transaction, the devil is in the details. If we're lucky, everybody will agree this latest draft is acceptable."

Alterwitz said the retailers were concerned about the potential for "predatory retail practices" by the developers.

Jost said under the newest proposed version of the agreement, the developers would still be able to hold clearance, or sample sales after trade shows. But added language would restrict the scope of the sales, including how many days they can be held.

As in the original agreement, no tax rebates can go toward any retail portion of the project.

The council is scheduled to consider the twice-delayed agreement Aug. 21. The developers still need final approval of a separate final development agreement before the project can move forward.

Jack Kashani, managing partner of World Market Center, said he hoped the delays would not move construction past the end of the year.

Alterwitz said although the retailers had concerns over the retail component, they support the wholesale mart project.

"A wholesale project will be good for Las Vegas and what's good for Las Vegas is good for Walker Furniture," he said. "So long as the consumers are protected, then legitimate retailers are protected."