Agreement OKs tax breaks for high-rise condos

Thursday, June 16, 2005 | 8:56 a.m.

A planned twin high-rise condominium project could receive up to $26 million in tax breaks during the next 20 years, under an agreement unanimously approved Wednesday by the Las Vegas City Council.

Some council members said they supported the tax rebate plan because the developers will only receive a rebate if their project increases their tax bills. So, they said, the city would only be returning a portion of tax dollars that the city doesn't yet have.

The Allure Condominium project was awarded a tax increment financing plan, also called a TIF, for the two 41-story buildings planned to be built at Sahara and Fairfield avenues, near Las Vegas Boulevard South.

Under the TIF, the condominium developers will receive a tax rebate equal to 41 percent of the increase to the property taxes paid for the buildings.

While $26 million would be the most they could receive because that is the estimated value of the TIF eligible expenses for the project, City Business Development Director Scott Adams said the rebate is expected to be worth no more than $17.1 million.

However, exactly how much Allure's developers might receive is unknown because it will depend on how much the development increases the taxes on the property.

In addition to the 41 percent that is returned to the developers, the TIF plan also calls for putting 18 percent of the increase in tax revenue into a special affordable housing fund.

During a recent interview City Councilman Gary Reese said the TIF is worth the trade off.

"This will be money we would not normally get anyway," he said.

The city has also done TIF plans for the World Market Center and the Las Vegas Premium Outlets shopping mall.