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Zappos: Henderson to downtown Las Vegas.
Thursday, June 9, 2011 | 12:28 p.m.
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Sun archives
- Zappos brainstorming how to make downtown more livable (5-20-2010)
- Zappos CEO envisions a new community downtown (3-17-2011)
- Goodman: Zappos move a ‘watershed moment’ for downtown Las Vegas (12-1-2010)
- City of Henderson taking departure of Zappos.com in stride (12-1-2010)
- Zappos views Las Vegas City Hall as perfect fit for new headquarters (11-29-2010)
- Local, national Web retailers looking for Cyber Monday boost (11-29-2010)
- Henderson’s Zappos.com listed among best places to work (1-22-2010)
- From upstart to $1 billion behemoth, Zappos marks 10 years (6-16-2009)
- Henderson-based Zappos earns honors for ethics (4-13-2009)
The deal to transform City Hall into the headquarters for Zappos.com is going to cost less than originally planned.
Because of renovations expected to cost $65 million versus the original estimate of $43 million, the city and Resort Gaming Group — which will purchase the building and surrounding downtown Las Vegas acreage, and then lease it to Zappos — have amended an agreement signed in December, which the City Council will consider next week. The new agreement calls for the city to sell the building for $18 million instead of $25 million.
The new deal would require Zappos to pay off a remodeling debt to the city, which will be the noteholder, in 15 years instead of 30 years. Hopes were that the sale of City Hall would help Las Vegas offset the cost of building another City Hall, which is being financed with $185 million in bonds. Las Vegas City Manager Betsy Fretwell said the new agreement means Zappos/Amazon will end up paying about 25 percent of the debt for the new City Hall.
Yearly payments for the building will be $11 million to $13 million.
Fretwell said city staff are “very excited” about what the Zappos move will mean for downtown redevelopment. Zappos’ staff is planning renovations to the old City Hall, and to make downtown and Fremont Street East a mecca for music, food, affordable housing and other cultural amenities.
Demonstrating Zappos’ commitment, CEO Tony Hsieh and other employees are leasing all apartments and condos on a single floor of the Ogden, a high rise one block from the current City Hall.
When the move happens, the company expects to bring 1,200 employees downtown, with the number expected to grow to 2,000.
CORRECTION: The original version of the story incorrectly stated that Zappos would purchase City Hall from the city of Las Vegas. Rather, Resort Gaming Group will buy the building and lease it to the online shoe retailer. | (January 5, 2012)
This story paints a different picture than the one from Jon Ralston. Which is more correct?
How many new jobs will be added? Will employees be imported or NV residents?
Libra: I think the better question is will Las Vegas have qualified candidates for these new positions, or will they have no choice but to relocate talent from out of state?
It would be interesting to know how many high tech employees Zappos has had to bring in from out of state because the skills were not available locally, so the numbers can be presented to the gov the next time he cuts UNLV's budget.
VegasEngineer,
It's not only the skill level, but whether or not a prospective employee will fit into the company culture. That might matter even more to Zappos, from what I can tell.
The skill sets are probably here for the most part, but the attitude is another question entirely. Whoever they hire has to have a very good grasp of what "outstanding customer service" means.
What if all the hype about this move is just more empty promises to fleece the taxpayer and to improve the front, put on by local politicians. This company is a subsidiary of a larger company, that means that all of its growth and spending is controlled by someone else. None of the downtown politicians understand web based companies and the future of the web. What did Zappos do for Henderson other than create a stir when they moved. This whole thing will show the ignorance of the local politician and the con like savvy of another corporation.
Why would Zappos be paying the City of Las Vegas for the remodeling of a building that the city has sold? If you sold your house, and the tenent of the new owner wanted it to be remodeled, would you be able to collect from that renter of the property you don't own?
SMELL TEST, folks.
Zappos is not moving from out of state.
It is moving from its campus in Henderson, NV to downtown Las Vegas.
Which is very stupid...............but heck if they have cash to blow then let them at it.
FRM,
They are *leasing* the building, not buying it. Small difference.
No, this actually will spur some business development in downtown, mainly places like Subway and other places to have lunch. Any 24/7 pizza or Chinese food joint that delivers should do good as well.