Power struggle stalls LV land project

Diana Sahagun

Thursday, March 21, 2002 | 11:11 a.m.

The development of 61 acres west of downtown Las Vegas has been stalled due to an apparent sense of confusion over who's in charge of the project.

In a move that surprised the City Council, Southwest Sports Group President Michael Cramer said the city has been driving the process for the past six months, in effect taking on the role of developer.

It's a power struggle that has frustrated Southwest, because although the city selected it as the potential master developer of the 61 acres, Cramer said the firm has not been fully involved in the decision-making process.

Faced with tough questions over the city's role in the development and who should decide what is built on the land, the council informally agreed to postpone for 90 days a final agreement with Southwest to schedule a special workshop to discuss the issues.

"In some instances we have not been in control of the process," Cramer said. "We have been in some ways followers of the city's lead on some things and yet at the same time we are pursuing our own parallel path."

Cramer said the company still wants to proceed with a final agreement, which would define development.

However, since selecting Southwest in July the city has flexed some muscle in regard to what should be built on the property. Southwest specializes in building mixed-use developments, with a minor-league stadium as the centerpiece.

But Mayor Oscar Goodman has said that he will not support a new home for the Las Vegas 51s -- the city's minor-league baseball team -- with taxpayer funds. In recent months, culminating with a trip this week to San Francisco, Goodman has made the construction of an academic medical center at the site a priority.

Cramer said when the city started negotiating with Southwest it never defined its role in the development. According to the agreement, both parties were to work together to determine the feasibility of a mixed use development. The parties were supposed to agree on the hiring of consultants to perform independent studies on the potential for several uses, including an academic medical center, performing arts center, minor-league baseball and retail facilities.

But, as Cramer pointed out, the company was not involved in the city hiring J&B Consulting for $15,000 to study the feasibility of a performing arts center.

Lesa Coder, business development director, though, said Southwest agreed on the company.

Councilman Larry Brown for the first time Wednesday made public statements criticizing the process. Brown until last year had worked with the Las Vegas 51s, who are affiliated with Mandalay Entertainment and Southwest.

Brown, until he left in December, had to abstain from any item relating to the development because of a conflict of interest.

Brown said he has been disappointed in the process since its inception, calling the city's Request for Proposals "embarrassing" because it netted only three interested developers. He also said the city appears to be driving the process, which may not necessarily be consistent with the council's intentions.

"It's my understanding that we are hiring a developer to drive this process," Brown said. "I'm getting a sense that we're driving this process and pulling those segments that we want to come with us."

Much of his criticism centered around a feasibility study performed by Economic Research Associates, which, in its report, stated that "providing significant subsidy to attract the baseball stadium is not justified."

"That one statement was one of the few biased statements I found in the report," Brown said. "That kind of judgment was not made on the others."

Jeff Cohen of ERA said the city asked for the company's opinion, which he provided. At Brown's request Cohen said he would submit conclusions for the other uses.

Coder said the city asked Cohen and his firm to draw conclusions on all land uses, was not selective in any way and did not coach or counsel the company to draw conclusions.

Cramer, while agreeing with the city's decision to hire ERA, said, "I take exception to that fact that even though we are supposed to be doing the feasibility study, I know (city) staff has, in some way, shape or form, posed some questions that made the conclusions come out a little different than if they simply wrote that report for us."

Coder said it was important to obtain an independent review, and that she wouldn't feel comfortable accepting a study paid for by Southwest.