City celebrates start of outlet mall

Diana Sahagun

Wednesday, July 3, 2002 | 9:48 a.m.

Barren railroad land that has sat vacant for decades west of downtown Las Vegas began its transformation Tuesday into a high-end outlet mall that developers say will draw more than 8 million tourists per year.

City officials were on hand for the ceremonial turning of dirt, but the 39-acre parcel across from the County Government Center was already under construction, with the land graded and trailers set up for developers overseeing construction.

Chelsea Property Group, in partnership with Simon Property Group, became the first developer to break ground on several barren parcels that city officials have been pinning their hopes on to create a new downtown. The mall is scheduled to be finished in fall 2003.

Mayor Oscar Goodman pumped his fists in the air when he arrived for the ground-breaking ceremony, saying he felt like Muhammad Ali or Babe Ruth.

"This is the biggest day for downtown ... so far," Goodman said. "This is not a home run, this is like the Super Bowl for us."

Development is stirring on several nearby parcels, but just when ground will be turned remains to be seen. A nearby 57-acre parcel is planned for a 7.5 million-square-foot furniture mart, although ground is not expected to be broken until the end of the year.

City officials are nearing the end of negotiations with Texas-based Southwest Sports Group to develop 61 acres of land proposed for an academic medical center, high-density residential, and a performing arts center.

The council today is scheduled to decide whether to grant the developer a second extension for finalizing the development agreement, for 30 days. If the extension is granted, the final agreement would be in the hands of the council in September, a year after the members choose Southwest as the proposed developer of the parcel.

Lesa Coder, the city's business development director, said the outlet mall project is the most significant construction project in downtown since she started working for the city in 1999.

"It will be great," she said of the mall. "It will provide additional employees downtown and support other retailers."

Mark Silvestri, senior director of development for Chelsea, declined to disclose tenants for the 435,000-square-foot Las Vegas Premium Outlets mall, but said the store roster would be similar to that of the Orlando Premium Outlets in Florida. Tenants there include Versace, Tod's, Bottega Veneta, Coach, Max Mara, Donna Karan, Polo Ralph Lauren, Kenneth Cole, Nike and Tommy Hilfiger.

Two additional parcels, on either ends of the mall, are pegged for future development that city officials hope will be high-density.

"We're going to have high-rises down here shortly," Goodman said. "It's almost like creating a city. Not bad in three years."