Council votes to annex land for shopping center

Wednesday, Aug. 17, 2005 | 9:55 a.m.

The Henderson City Council voted Tuesday to annex 73 acres of former industrial property, paving the way for a proposed regional shopping center city officials estimate would generate at least $1 million more a year in property tax revenue and contribute to downtown revitalization efforts.

The annexation of the 73 acres at the northwest corner of Lake Mead Parkway and Water Street sets the stage for the property's owner, the LandWell Co., to sell the land to Wal-Mart. The Arkansas-based retailer plans a Wal-Mart Supercenter and Sam's Club that will take almost half the site and consist of 340,000 square feet.

Council members, however, warned that simply because they approved the annexation doesn't mean they will approve the proposed zoning change and plans for the Wal-Mart development. Council members said the city needed to annex the property to have control over what is put there.

"It is not a done deal on Wal-Mart," Councilman Andy Hafen said.

No one appeared at the City Council on Tuesday to speak out against the annexation. The proposed retail development, however, hasn't been without critics, even downtown businesses who fear competition from a regional shopping center.

A neighborhood meeting in July brought out about 40 residents, some of whom were concerned about additional traffic and others upset about the development of the Timet Field, officials said. The undeveloped property of the Titanium Metals Corp. has a park that has been used for decades by residents.

LandWell, the real estate arm of the company that manages the huge industrial complex on Lake Mead west of Boulder Highway, plans to build parks and a trail system as part of a 2,200-acre development northeast of that intersection.

The 73-acre site is less than a mile from an existing Wal-Mart store at 300 E. Lake Mead Parkway. If the city approved the project, that building is expected to be either leased or demolished.

Along with Wal-Mart's partner, Las Vegas-based developer Territory Inc., the plans for the eastern side of the 73-acre site include a 100,000 square-foot five-story medical office building, and banks, restaurants, and other retail shops totaling more than 200,000 square feet, Henderson officials said.

Tuesday's vote by the City Council dealt with the annexation only. Site plan review and zoning changes will go before the Henderson Planning Commission on Aug. 25. No date has been set for the council review.

The proposed project has Henderson officials excited that it will help continue the revitalization of Water Street, the city's aging downtown district that consists of casinos, restaurants, boutiques and other speciality retail shops. The $1 million a year property tax revenue generated by the development would boost revenues in the downtown redevelopment district by 40 percent. That's extra money that can be spent on business, housing and infrastructure improvements and programs, officials said.

"That would be a nice bit of increment (extra tax revenue) to reinvest in the downtown," said Henderson Redevelopment Manager Robert Ryan. "It gives us a lot more flexibility to do projects."

With the Henderson City Hall and municipal buildings on the southern end of Water Street, the regional shopping center on the northern end will serve as a gateway for the area, said John Sullivan, the president of Territory Inc. He said it will generate not only the property tax revenue for the old downtown but generate more traffic for a corridor that city officials envision as one of pedestrian retail, offices, loft condos, a theater and artist galleries.

Some redevelopment projects in partnership with the city are already under way.

"This will prove to be the economic engine to help start up Water Street," Sullivan said. "Over the course of time, it can be likened to a Main Street."

The proposed shopping center, meanwhile, has drawn concerns from the Henderson Downtown Business Association, which wrote a letter asking the city to be careful of having uses that compete with downtown stores, Ryan said.

Ryan said that's unlikely because the center will feature large retailers rather than boutiques and speciality retailers along Water Street.

Michael Holland, the owner of Gold Caster Jewelry on Water Street, said the inclusion of a Wal-Mart doesn't have businesses worried, but they fear the other retailers that go into the complex who might compete against them.

Holland, who has been in business for 23 years, said the existing Wal-Mart on Lake Mead Parkway refers customers to him on a daily basis, and he's not worried about competition.

Holland said the regional shopping center will bring more customers to the area and generate more revenue for the redevelopment zone and benefit businesses like his. He said he obtained a $30,000 grant from the city for facade improvements to beautify his store. His only concern is as a homeowner near the proposed shopping center, he said.

"I haven't seen anything truly negative other than we will have a large influx of traffic for people who live in this area. It's good for me as a business, but I like the small-town pace (of living here)."

Territory Inc. also developed a Wal-Mart Supercenter in Henderson at Eastgate near the Galleria Mall at Sunset, a little more than four miles from the proposed supercenter.

Sullivan said Wal-Mart isn't concerned about placing its supercenter so close to its store at Eastgate. He said the supercenters are on the opposite side of U.S. 95, and Wal-Mart envisions the downtown center as serving old Henderson, Lake Las Vegas and Boulder City.

"They feel there is a large market that's not being service," Sullivan said.

The 73 acres is part of an island that has historically been in unincorporated Clark County since the development of the industrial corridor in the 1940s. LandWell also plans to annex about 1,700 acres of former industrial property into the city for the development of a master planned community.

Because the property is an island separated by Henderson that has annexed land around it, Mark Paris, the president and chief executive officer of the LandWell Co., said it makes sense to be part of the city to receive water, sewer and other services.