LV to spend $1.3 mil. on three homes

Dan Kulin

Thursday, Nov. 18, 2004 | 11:08 a.m.

The Las Vegas City Council on Wednesday approved spending more than $1.3 million to buy three residential properties planned to become part of a parking lot for a new city office building across Las Vegas Boulevard from City Hall.

The properties, which together are just under a half acre, were bought by the private owners for a combined $381,700 several years ago, according to Clark County assessor's office records.

An appraisal of the properties done for the city in December by Gary H. Kent Inc. said the properties were worth $280,000 each, which is $840,000 combined. But a city document said that because that appraisal was almost a year old, David Roark, manager of real estate and assets for the city, adjusted the estimated value of the properties "based on current trends" and determined the "approximate estimated value of the properties each are in excess of $375,000."

Based on that estimate, combined the properties would be worth at least $1.1 million.

The move to buy the properties also comes despite Mayor Oscar Goodman and City Manager Douglas Selby's recent statements that a new City Hall might be part of development plans for 61 acres of vacant downtown property that was the former Union Pacific railyards. If that happens, the city would move out of the existing City Hall, which would be turned into a residential complex, and the new building and parking lot would be unnecessary.

Selby and several council members said the city's purchase price was based on appraisals of the property, which Selby said were a starting point for negotiations with the land owners. They added that downtown property has become more valuable in recent years and would be more expensive if they waited until later to buy the properties.

They also said that the proposal to build a new City Hall on the 61 acres is so early in the discussion stages that it is prudent to move ahead with existing plans for the new building. However, Selby said the city will hold off on using eminent domain to force the sale of property for the planned new building and parking lot.

Goodman said Tuesday the council would probably wait to buy the three properties until there is a decision on whether a new City Hall will go on the 61 acres. But Wednesday he said the purchases could be a good deal for the city no matter what happens.

"We're going to just go ahead. We often work on parallel tracks ... and land is very scarce downtown, so City Hall or not, we may want to buy it," Goodman said, adding that the council could decide to back out of the purchases they approved Wednesday.

Councilman Larry Brown said even if the city doesn't end up building a new building across the street from City Hall on Stewart Avenue, the city would not lose money on the land purchases.

"This is a good investment because by the time we start construction the land could be worth that or more," Brown said.

Councilman Lawrence Weekly, whose ward includes the downtown land, said building a new City Hall on the 61 acres is "just an idea" at this point and has never been discussed publicly by the council. Meanwhile, the expansion project, which would require the land that was purchased, has been discussed and endorsed by the council.

Weekly said the city is paying a lot of money for the land, but: "Look at what land costs these days."

Since December the city has spent about $4.3 million to buy 12 other pieces of land in the area surrounded by Las Vegas Boulevard, U.S. 95, Stewart Avenue and North 7th Street.

The city plans to build the new six-story office building on the block surrounded by Las Vegas Boulevard, Stewart Avenue, North Sixth Street, and Mesquite Avenue. The rest of the land would be used for surface parking and provide space for future expansions of City Hall. The project is expected to cost almost $40 million.

The new building, referred to as the East Tower in city documents, would likely house several city services such as public works, planning and development, that are now in a leased building or other city buildings off the main City Hall complex, Deputy City Manager Steve Houchens said.

Construction is scheduled to start by June and is to last about two years.

The move would also allow the city to save more than $700,000 a year that now goes toward renting a building and parking spaces, he said.

A sky bridge would connect the new building to the existing City Hall at Las Vegas Boulevard and Stewart Avenue.

The purchases of 319, 323, and 325 on North 6th Street were approved Wednesday as part of the council's consent agenda, which is a list of dozens of items considered routine and voted on together. The council voted 6-0 to approve the consent agenda.

Councilman Steve Wolfson was out of the Council Chambers when the vote was taken, but later said he too would have supported the purchases.

Just after the vote, Councilman Michael Mack disclosed that his brother-in-law Andrew Donner is an owner of the nearby Lady Luck Casino, but said he doesn't believe the purchases would affect his brother-in-law's interests.

Mack said the prices were "not out of whack" with land costs around the area, and said the city would only pay more for the land if they had waited.

According to city documents, the city will pay $437,500, plus closing costs, for 319 N. 6th St., a 0.16-acre property with a duplex on it. The Saito Family Revocable Living Trust purchased the property in 1992 for $112,000, according to assessor records.

The council also approved paying $437,500, plus closing costs, for 323 N. 6th St., a 0.16-acre parcel with a house on it. George G. and Clara Y. Saito paid $72,700 for the property in March 2000, according to assessor records.

The third property to be purchased is 325 N. 6th St., a 0.16-acre piece with a duplex on it, which was last bought by Antonio Cortez for $197,000 in February 2001, according to assessor records. The council agreed to pay $450,000, plus closing costs, for the property.

There are 15 other pieces of land the city does not already own within the area outlined for the new building and parking lot, Houchens said.

Ten of those parcels are owned by Barrick Gaming Corp., which is interested in trading land with the city, he said.

Shortly after the Wednesday morning council meeting, Goodman, Weekly and Selby headed to Florida where they are expected to meet with representatives from The Related Companies and tour a West Palm Beach development the company did. Related is negotiating with city officials to develop the 61 acres, where city plans call for construction of a residential and commercial development with an academic medical center, performing arts center, and possibly new City Hall. The city is calling the proposed development there Union Park.