Editorial: There’s hope for Neonopolis

Tuesday, April 10, 2007 | 7:18 a.m.

After Las Vegas Sun reporter Mark Hansel broke the news last week that Las Vegas officials have been quietly seeking new ownership for the failing Neonopolis, city redevelopment officials publicly confirmed that such talks were under way.

Certainly this is welcome news, because Neonopolis has been a major disappointment since it opened downtown five years ago as a retail and entertainment center.

The hope was that after the city sank nearly $33 million into the project, paying for the land and parking garage, Neonopolis would somehow find its own way and evolve into an attraction that would stimulate other investment throughout the downtown area.

But Prudential Real Estate Holdings, the center's original owner, could never establish an identity for the 250,000-square-foot property at Las Vegas Boulevard and Fremont Street. The $100 million Neonopolis was best known for its emptiness.

Last year Wirrulla Hayward LLC, a company incorporated in Delaware and backed by international investors, bought Neonopolis for $25 million. Today the building is emptier than ever. Its plans are lackluster and have been sharply criticized by Mayor Oscar Goodman.

The company that the city is talking to, Chicago-based General Growth Properties Inc., has a record of success in giving properties identities and achieving results. General Growth is the nation's second-largest real estate investment trust and has interests in more than 200 shopping malls in 44 states.

General Growth's projects in Las Vegas include the Fashion Show mall, the Grand Canal Shoppes at the Venetian and retail and housing developments in Summerlin.

Given the size of its investment, the city has considerable interest in seeing an identity developed for Neonopolis and in seeing it filled with tenants that sign long-term leases.

Neonopolis needs, and the city needs, a corporate owner that will be capitalized enough and creative enough to turn Neonopolis into the attraction for downtown that it was always intended to be.