Balancing money, safety

Wednesday, Dec. 28, 2005 | 9:08 a.m.

Henderson could earn about $50 million in property taxes over the next 19 years if the city approves a Wal-Mart and retail and office project adjacent to an industrial complex that stores hazardous chemicals, according to a city-commissioned report.

Wal-Mart has put its plans on hold amid growing controversy about whether it is appropriate to have retail stores within 700 feet of chemical plants at the Basic Management Inc. site.

While that plan is on hold, the Henderson City Council on Jan. 3 is expected to consider a proposal to annex 1,362 acres east of Boulder Highway -- north of the proposed site for Wal-Mart.

The proposal is expected to include homes, apartments, offices and retail and industrial sites. That plan has escaped the criticism targeted at the Wal-Mart proposal.

Wal-Mart and Las Vegas developer Territory Inc. had planned a 758,000-square-foot shopping center on 73 acres of industrially zoned property at the northwest corner of Lake Mead Parkway and Water Street. The Henderson City Council will vote Tuesday on including the 73 acres in the downtown redevelopment zone.

The property tax revenue that the city would gain from the proposed Wal-Mart project would exceed by at least $12 million, over the same time span, what Henderson could expect to receive from an industrial complex with offices instead of retail, according to an analysis by a city consultant, Keyser Marston Associates.

Despite Wal-Mart's greater revenue potential, Henderson Redevelopment Manager Robert Ryan said, money will not be any decision's driving factor if the retailer decides to push ahead.

Any tax revenue would be used for spurring downtown redevelopment and improving housing in the vicinity, he said.

"I think the elected officials are going to do what they think is the appropriate development for that site," Ryan said.

The site is owned by a Titanium Metals Corp investment group. They have downplayed any dangers at the site, pointing out that there have been no major accidents in recent years.

Mark Paris, chief executive officer of LandWell Co., the real estate arm of the firm that manages the industrial complex, said that even if Wal-Mart pulls out, other retail uses will be considered.

Henderson Councilwoman Amanda Cyphers, who has spoken out against the project, said the potential windfall of having a Wal-Mart on the site rather than industrial development should not influence the council's decision. Safety is the most important issue, she said.

"You can't make a decision on how much the city benefits from property tax," Cyphers said. "You have to do what is appropriate for zoning and safety."

Wal-Mart's plans have come under fire by the Nevada AFL-CIO, which represents union workers at BMI, where four companies still use and store hazardous chemicals. The labor organization, which has unsuccessfully tried to organize Wal-Mart employees, has warned about chemical releases potentially endangering shoppers if retail is developed on the site.

Sen. Dina Titus, D-Las Vegas, a gubernatorial candidate trying to woo union support, has made the siting of the Wal-Mart a campaign issue in her bid for the Democratic nomination against Henderson Mayor Jim Gibson.

Citing a history of toxic releases at the industrial complex and concerns about terrorism at chemical plants, Titus said the city should reject having thousands of shoppers in that vicinity.

Gibson spokesman Greg Bortolin said there is nothing to say on the issue because it is not currently on the city's agenda. In the past, Gibson had said safety would be the top consideration in any decision on the site.

Cyphers said she believes the project is on hold because of opposition to it from the council, unions and residents. She said, however, the project is not dead.

"I know Wal-Mart is still looking for the right location and trying to find a solution for them," Cyphers said.

Wal-Mart has another store down the street on Lake Mead Parkway, but does not have enough room to expand that site into a supercenter.

Doug Baker, a broker representing Wal-Mart, said he does not know when the retail giant will make its decision on whether to proceed.

Brian Wargo can be reached at 259-4011 or at wargo@lasvegassun.com.