$12.5 billion in appraised value lost

By Buck Wargo

Fri, Apr 9, 2010 (3 a.m.)

Steve Marcus

CityCenter added to the appraised value of property owned by MGM Mirage.

The 25 largest taxpayers in Clark County lost a combined $12.5 billion in appraised value on their properties in 2010, according to new tax rolls released by the Clark County assessor’s office.

The value of appraised properties among the top 25 as of April 1 totaled $41.2 billion, down from $53.7 billion a year ago, a 23 percent decline. The numbers include land and buildings only and not the property inside the buildings.

MGM Mirage led the list of largest taxpayers by far with its properties countywide appraised at $16.3 billion, a 4 percent increase over $15.7 billion in 2009.

MGM was one of the few to record an increase because the rolls include the newly completed CityCenter with its casino, hotels and condominiums.

“This is kind of the second wave we have had,” Rocky Steele, assistant director of assessment services for Clark County, said of the declining values. “We had the residential drop in values that occurred the last couple of years, and this drop (in commercial) was predicted by most of the renowned economists throughout the valley as the next wave.”

The steep drop in commercial values, however, doesn’t mean local governments are going to see a big drop in tax revenue, Steele said.

In 2005, the Nevada Legislature approved capping any increase in taxes on commercial properties at 8 percent a year, starting with values from 2004-05, Steele said. Commercial values rose significantly since then and despite any recent drop, longtime property owners would continue to pay the 8 percent increase because values haven’t fallen far enough, he said.

Because of that cap, Steele said, the list of largest taxpayers is actually a misnomer because a company with properties with higher values may be paying less in taxes than a lower-ranked company.

MGM’s $16.3 billion in appraised value on its property equates to an assessed value of $5.5 billion. That number, which determines taxes, would have been higher except that MGM sold Treasure Island to Phil Ruffin. Treasure Island had an appraised value of $396 million, putting it No. 16 on the list.

No. 2 on the list is Harrah’s Entertainment at $5 billion, down from $7.3 billion a year ago despite the acquisition of Planet Hollywood. It was second a year ago.

NV Energy jumped from fourth to third with $4.3 billion, up from $3.7 billion a year ago. It was among the few taxpayers to record a gain.

Las Vegas Sands Corp. went from No. 6 to No. 4 despite its values dropping from $2.6 billion last year to $1.9 billion this year.

Boyd Gaming rose to No. 5 with $1.7 billion in property. It was ranked No. 7 a year ago with $2.6 billion in property.

Wynn Resorts fell one notch to No. 6 with $1.6 billion, down from $2.7 billion.

General Growth Properties, which owns several malls and property in Summerlin, fell to No. 7 with $1.5 billion. It was No. 3 with $4.7 billion a year ago.

Station Casinos remained No. 8, but its appraised values fell from $2.1 billion a year ago to $1.3 billion this year.

Universal Health Care, parent of the Valley Health System, jumped to No. 9, up from No. 24 with its values rising $23 million to $531 million. Its rise was more a reflection of other large taxpayers seeing their values plummet.

Rounding out the top 10 was industrial property owner Basic Management with $526 million, down from $733 million a year ago when it was ranked No. 12.

Among those that have fallen off the list are Turnberry Associates, the former No. 10, whose 2009 listing included Fontainebleau Las Vegas and Turnberry condominiums. Its values totaled $1 billion in 2009, but its holdings have fallen to less than $257 million, the lowest level routinely tracked by the assessor’s office. That office tends to combine related properties for its top 25 list, even though they are set up under separate entities.

Focus Property Group, developer of Inspirada and Mountain’s Edge among other projects, fell off the list after being ranked No. 13 last year with $729 million.

Trump International fell outside the top 25 after it was ranked No. 14 a year ago at $710 million.

Mall developer Triple Five Development also fell off the list. It was ranked No. 19 last year with $565 million.

The other top taxpayers:

• No. 11 — World Market Center: $484 million, down from $648 million. It was ranked No. 16 last year.

• No. 12 — McCarran Center: $453 million, down from $594 million. The owner of business parks and industrial parks was ranked No. 18 last year.

• No. 13 — Camden Property Trust, an owner of apartments: $435 million, down from $649 million. It was ranked No. 15 last year.

• No. 14 — Olympia Group, a land development company: $429 million, down from $1.1 billion. It was ranked No. 9 last year.

• No. 15 — Greenspun Companies (land developer, gaming and media investor and owner of In Business Las Vegas): $425 million, down from $555 million. It was ranked No. 21 last year.

• No. 16 — Treasure Island Ltd.: $396 million. It is a new entity.

• No. 17. — Harsch Investment Properties: $385 million, down from $556 million. It was ranked No. 20 last year.

• No. 18 — Marnell Corrao Associates: $383 million. The assessor’s office includes M Resort of the Marnell family in that listing. It was unranked last year.

• No. 19 — Nevada Property 1: $350 million, down from $512 million. The owner of the Cosmopolitan of Las Vegas was ranked No. 23 last year.

• No. 20 — Hospital Corporation of America, parent of the Sunrise health system: $345 million. It was not ranked last year.

• No. 21 — Gaughan South Limited, owner of the South Point: $322 million. It was not ranked last year.

• No. 22 — Olen Properties: $316 million, down from $505 million. The apartment developer was No. 25 last year.

• No. 23 — Wal-Mart: $313 million. It was not ranked last year.

• No. 24 — Goldman Sachs Group: $312 million, down from $625 million. It was ranked No. 17 last year. Its investments include the Stratosphere and Arizona Charlies’ casinos.

• No. 25 — Crescent Real Estate Equities: $311 million. Owner of the Hughes Center was not ranked last year.