City reaches deal on upscale outlet mall

Diana Sahagun

Thursday, June 20, 2002 | 9:10 a.m.

The city's desire for high-rises downtown nearly derailed plans for an upscale outlet mall Wednesday.

Chelsea Property Group appeared before the Las Vegas City Council seeking final approval of a development agreement that included $200,000 in tax incentives over 13 years.

The space for the retail mall on 39 acres across from the Clark County Government Center includes two other parcels, at the north and south ends, to be sold or leased to other developers.

Mayor Oscar Goodman said he wanted a stipulation that those two parcels include high-rise development. He also suggested a that the city have the first shot at purchasing the two parcels if the developer could not secure high-rise development.

"I don't want to have more horizontal development on all of that land," Goodman said.

Councilman Larry Brown, though, said the requirement would send the wrong message to potential developers, because the market dictates what type of development is viable on a parcel.

Attorney Mark Fiorentino, representing Chelsea Property Group, said the company would not agree to additional conditions, but said the company would work with the city for an acceptable use on the two parcels in the future.

Because all plans for the two parcels must come before the council, Goodman said his concerns would be expressed when the council takes up news plans for the property.

As part of the development agreement, the city agreed to a rebate of 41 percent of the property taxes the project is expected to generate over 13 years.

When the company announced its plans for the project in July, company officials said it would need no city subsidy.

But after Sept. 11, Fiorentino said, the project suffered from a dramatic decrease in interest from prospective tenants due to a decline in tourism and retail sales.

Company officials estimate they will close escrow on the property by July 1, with an immediate groundbreaking. The mall is scheduled to open in October 2003.

The 478,028-square foot outlet mall is expected to draw 8 million tourists annually, according to the developer.

Goodman called the project "the best thing since sliced bread," but had a warning for the developer.

"This better be what I think it's going to be or I will bring in Joe Pesci and drive you right out of town," said Goodman, who portrayed himself opposite Robert De Niro and Pesci in the film "Casino."