Apartment-to-condominium issue is not going away soon

Dan Kulin

Tuesday, Jan. 17, 2006 | 8:45 a.m.

The contentious issue of limiting the conversion of apartments into condominiums in Las Vegas is headed back to the City Council -- and without a call for a moratorium on the practice.

The proposed new regulations would make apartment-to-condo conversions subject to council approval of a special-use permit. That would give the council the power to deny such a conversion based on nothing more than the council's desire to keep a building as apartments, city Planning and Development Director Margo Wheeler said.

Now, conversions are approved as part of what is known as a site-development review, a process that limits the council's discretion in denying conversions to code issues.

The matter is scheduled to be discussed by the council Wednesday. Wheeler said the proposed regulations will probably go to the council for final approval in March.

City leaders' concerns about Las Vegas' shrinking apartment market prompted city staff to take a closer look at the issue, which is seen as a piece of the affordable housing issue. That is because apartments generally cost less monthly than condominiums, and so the conversions are seen as a potential problem for lower-income residents.

Faced with pressure from the development community in November, the council decided against putting a moratorium on the conversions, which would have all but stopped the practice while the new regulations were put together.

The issue for developers is that rising home prices make condos more profitable than apartment buildings, which prompts apartment owners to seek permission to convert their property into condos.

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With Las Vegas in the hunt for a top professional sports franchise, every rumor gets some attention.

The NHL's Pittsburgh Penguins are expected to seek a new home in the near future. Their lease in Pittsburgh expires in 2007 and team officials have said there is little chance the team will stay.

Other cities also are interested in landing the team -- most notably Kansas City -- and news of the Penguins' potential availability was news to Las Vegas Mayor Oscar Goodman. However, Goodman said he would be interested in hockey even though he is not very familiar with the sport.

"I only lose on football, which I know a lot about, baseball, which I know a lot about, and basketball, which I know a lot about," the mayor said, referring to his sports wagering habit.

Goodman has been the top public cheerleader for bringing a new team to Las Vegas. Most recent efforts and talk have centered around baseball.

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It remained unclear late last week whether the Las Vegas City Council will vote Wednesday on a proposed development that involves land currently owned by the state's attorney general.

The council postponed a decision on the matter two weeks ago after Goodman said he was concerned about a potential conflict of interest for the council. The mayor asked the city attorney's office for an opinion on the issue, and as of late last week he had not received a response.

In November, Attorney General George Chanos launched an investigation into the city's dealings with Bill Walters as they relate to Walters' request that the city lift a deed restriction so he can build homes next to the city's sewage treatment plant. Chanos quickly put a private law firm on the investigation, saying he wanted to avoid even the appearance of a conflict.

Last February, then-private attorney Chanos and three business partners, acting as Cousins Chanos LLC, paid $2.4 million for 3.5 acres on Western Avenue near Interstate 15.

Two months later, and still long before Chanos was appointed the attorney general, Chanos and his partners signed an agreement with Las Vegas developer Craig Katchen under which Cousins Chanos would be paid $10 million for the land. The property is part of 7.8 acres proposed to be home to a high-rise project that would include 1,236 residential units and 62,417 square feet of office and retail space.

Chanos has said the sale agreement is not contingent upon council approval of the necessary rezoning and other related items. However, an attorney for the developer has said that without the council approvals, Katchen would not necessarily close the deal with Chanos and his partners.

Dan Kulin can be reached at 259-8826 or at dan@lasvegassun.com.