Thursday, Sept. 9, 2004 | 9:32 a.m.
Yet another condominium project is planned for the Las Vegas Strip -- but this one might face opposition from Clark County and the Federal Aviation Administration because it's adjacent to McCarran International Airport.
Kennedy Funding, a direct private lender based in Hackensack, N.J., announced this week that it helped fund the purchase of 1.76 acres of land that sold for $18.25 million. The parcel is 700 feet to 800 feet south of Mandalay Bay on the east side of Las Vegas Boulevard and is the site of an abandoned motel.
Henry Haskell, a partner in Kennedy Funding, said that Floridian Todd Roth closed escrow on the land last week. Roth could not be reached for comment.
While the land is on Las Vegas Boulevard, it is near the airport runway and is subject to height requirements and could be subject to other land-use restrictions.
Those height requirements on land on Las Vegas Boulevard near the intersection of Interstates 215 and 15 have been the subject of numerous legal battles between developers and Clark County for years and have left much of the land vacant and abandoned properties in disrepair as parties wrangled about what can -- and can't -- be built on that land.
But those height requirements don't seem to be a concern for Kennedy Funding or Roth. Kennedy Funding ran an advertisement in the Wall Street Journal this week promoting the land purchase and suggesting that the height restrictions won't be a problem. In a press release, Kennedy Funding stated that the borrowers "believe" they can "win" a variance that will allow them to build up to 260 feet tall, the equivalent of 24 to 26 stories.
The ad, which ran Sept. 8 in the Wall Street Journal, stated: "They said the 100-foot height zoning reduced the value of this prime Las Vegas real estate. We said the developer is one variance away from building a residential development of condominiums and a condominium hotel on one of the hottest real estate parcels anywhere."
Haskell said Kennedy Funding and Roth understand there will be numerous legal and zoning hoops they must pass through before anything can ever get built. He also said despite the wording of the ad and press release they have no indication of how county commissioners or planners will view the project.
"They haven't spoken to anybody yet, it's very preliminary," Haskell said.
Jeffrey Wolfer, president of Kennedy Funding, said even if the project does not get approved for 260 feet, Roth will still go ahead with the project at 100 feet tall -- the height restriction cap for that land. Wolfer said the group is confident a condo complex, whether it's 100 feet tall or 260 feet tall, will be built on the land. He said the lender also felt more positive about the deal because Roth put $7.5 million of his own money toward the land purchase The entire loan from Kennedy Funding is $18.5 million, of which about $11 million is going toward the land purchase and the remaining money will be used for "soft costs" such as renderings and engineering plans, Wolfer said.
But Chuck Pulsifer, county planning manager, said numerous factors go into how high someone can build in that area and it's not a given that the developers will be allowed to even build 100 feet tall.
He said if the property is indeed zoned for hotel uses, as officials with Kennedy Funding said it is, the zoning district does allow for up to 100 feet and a use permit would allow them to build higher, providing there are no objections from the airport. And if the land falls in the so-called airport environs zone -- it could dictate whether residential uses are even allowed. Project plans have not yet been submitted to Clark County.
Pulsifer said while the wording of the ad is a bit premature, he said people only have to look to the Strip and Las Vegas history to know most projects, especially on the Strip, do get approved. "However, with one big caveat, and that is the airspace around McCarran. That's pretty close to the departure corridor which can substantially affect the height of a building," Pulsifer said. Even though the property is just down the street from Mandalay Bay and its hotel tower, which are both 464 feet tall, it could be far enough south that it makes a difference, he said. The Federal Aviation Administration will review the plans, but spokesman Donn Walker stressed it is not the FAA that sets height restrictions and that it does not have the final say on whether a project is built.
"We advise the city or county if we believe a proposed building constitutes a hazard or does not constitute a hazard," he said. "If Clark County wanted to approve a 1,800-foot building at the end of the runway, they could. We can't stop them."
However, if the FAA does deem a project "a hazard" and the county gives its approval despite that objection, the county is liable for any accidents that occur because of the building. Walker said he has not seen plans regarding the Metropolitan Land Development condo and could not comment on whether it is appropriate.
County Commissioner Rory Reid, who represents the area, said he had not heard of the project and said the landowner is not entitled to anything until receiving the proper approvals. The county has approved numerous condominium high-rise towers on and near the Strip corridor in recent months, but Reid said it has not approved one in the area of proposed project.
"They may have a basis on historical precedent. It's hard to know if they are right," he said.
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