Goodman: Economy could kill City Hall project

Thursday, June 18, 2009 | 3:51 p.m.

Mayor Oscar Goodman said the stalled economy might claim his new City Hall project.

Goodman said Thursday at his weekly press conference that he has asked his top managers to review whether the plan is still economically feasible. A decision could be reached at the City Council’s next meeting on July 1, he said.

The controversial city hall plans, which could cost up to $267 million, were the subject of a long-standing struggle with the Culinary Union, which sought through ballot measures to make sure voters would have the right to approve such projects.

The union lost its fight with the city after the city’s refusal to place the measures on the ballot was appealed to the state Supreme Court.

Goodman cited sluggish credit and bond markets as the main hindrance. The city has planned to use special certificates of participation to fund the project. To pay its lead developer to construct the city hall, the city had planned to sell the certificates to investors, and the city would then lease the building.

But these certificates, which the city had planned to sell at a 5 percent interest rate, now can only be sold at a 7.5 percent rate, Goodman said. That’s a practical difference of millions of dollars, he said.

Though Goodman has invested a great amount of political capital in the project’s success, he said he would do what was in the best interest of the citizens of the city, and not let his ego get in the way of the project’s possible demise.

“Everything’s changed,” he said. “It’s a new world.”

Discussion: 9 comments so far…

By exasperated

6/18/09 at 3:55 p.m.

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Stavros Anthony for Mayor!
By nednougat

6/18/09 at 4:12 p.m.

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With this town filled with Union layabouts, with nothing to do, and it's only getting worse, the cost would have doubled. Like the Clark County Courthouse debacle. How a right to work state pays the highest wages for construction is beyond comprehension. But it's all coming back now, and soon it will be quiet on the Strip and elsewhere. Save your pennies, Union guys, and don't forget to pay your dues.
By LVPaco

6/18/09 at 7:45 p.m.

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What to think...
By leftiebob

6/18/09 at 8:19 p.m.

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Dear Oscar:
Should the city bureaucracy need more room, there is plenty of vacant office space to rent for dirt cheap. Try to wait as long as possible because the rents will continue to go down. We are in for a long term new frugal economy. Learn that belt tightening will become the norm for a long time.
By neiman1

6/18/09 at 9:40 p.m.

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Amazing. After all that cost. Wasted tax dollars pushed to build in a depression with money no one has. That's the shameful part.
By buffy

6/18/09 at 9:45 p.m.

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What changed? When? What new world?
Did Rumplegoodskin just wake up?
Huh?
Or, just maybe...something else just changed.
He can't seriously think the EVIL culinary union will now go door-to-door for him to take Ensign's seat now that it's practically empty.
Can he?
Is he that divorced from reality?
Um, well, yes.
By stevem

6/18/09 at 9:58 p.m.

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dear oscar,

welcome to 2009. you've been sleeping for 2 years.

stop walking around with showgirls and playboy models and get to work on getting REAL jobs in this town. FAST!
By rumrunner

6/18/09 at 11:43 p.m.

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We can only hope this clown leaves with the circus? He's what you call a "floater".
By tttnow

6/19/09 at 7:21 a.m.

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"Everything's changed," he said. "It's a new world."

The bond market has been in the tank since August of 2008. I think the Culinary Union said it time and time again..."this is not the economic climate for this kind of project."

Live and learn.