Facebook
Fark
Digg
Reddit
Stumble
Tuesday, March 27, 2012 | 2 a.m.
Tony Hsieh purchased the Motel 6 property on 707 E. Fremont for $5.2 million.
Related content
Zappos’ efforts to remake downtown Las Vegas take another step forward with a real estate deal and plan to lure more young talent to the area.
The Downtown Project, founded by Zappos CEO Tony Hsieh and other investors to spearhead revitalization efforts, will announce today a partnership with Venture for America to bring new college graduates for two-year stints to help startup businesses get off the ground. The hope is participants will make their move downtown a permanent one.
“There’s a good chance they’ll be inspired by the startup and want to stay with that business,” said Zach Ware, campus/urban/startup development leader at Zappos and the Downtown Project. “It’s great exposure and experience for them.”
Founded a year ago, Venture for America is a nonprofit that describes itself as “a pathway for young, talented grads to become business builders and job creators in areas of need.” In August, 50 graduates selected by the group will join startup companies across the nation, including in Las Vegas.
Ware called the organization “a natural partner for us.”
“Their fellows will be a valuable part of the community we are developing,” he said, adding that he appreciates the nonprofit’s focus on job creation. “We’re going to create thousands of jobs here in downtown Las Vegas over the next five to 10 years.”
The deal echoes Zappos and Hsieh’s donation of $1.5 million to Teach for America , which trains teachers to work in schools that serve children from households in poverty. One reason behind the donation was a hope that the teachers will consider working and living downtown.
Meanwhile, the Downtown Project, funded with $350 million from Hsieh and others, recently closed on the $5.2 million purchase of the Motel 6 property at 707 E. Fremont St. The building will be demolished to make way for a yet-to-be determined facility.
Ware said a number of options were weighed, including renovating the building, before the decision was made to demolish it. Demolition will take place within 30 days.
The purchase continues a high-profile buying spree by Zappos and its affiliated groups: the Downtown Project’s recent purchase of the former 7-Eleven building at Las Vegas Boulevard and Fremont Street for $4.1 million; the acquisition of between 40-50 condos at The Ogden high-rise, where it houses people considering moving their business to Las Vegas; and, of course, the deal to move Zappos’ headquarters into the old City Hall.
Exactly what will go into the Motel 6 space isn’t known yet, Ware said, adding that the group is still discussing different ideas. Some of those include affordable residential units and retail space made out of large storage containers similar to those transported by railroad and tractor-trailers.
The $350 million invested into the Downtown Project includes $200 million for commercial and residential real estate, $50 million for tech startups, $50 million for local business and $50 million for education.
It is truly exciting to see the actions that Tony Hsieh is taking in making the downtown area a mini-Silicon Valley. Ultimately, it'll help make this area a vibrant place filled with professionals who will ultimately make the downtown area a desirable place to live and work in.
@Feldling
I hope there are enough "young professionals" in the Vegas Valley that are qualified.
<<In August, 50 graduates selected by the group will join startup companies across the nation, including in Las Vegas>>
Wonder how many came from Las Vegas.
Wow, this guy and his company are whirlwinds of activity and doing what seems to be great things for DT LV. So much for the naysayers who delight in flogging all corporations as being "greedy" bloodsuckers. Seems like Zappos doesn't quite measure up to their "the glass is half empty" rhetoric, does it?
What's the story here? Hsieh buys an old Motel 6 for $5.2 mil and demolishes it with no plans for it. How does that help Downtown? There's too much hype and not enough substance. There's a lot of "what if's" built into the Zappos downtown plan and the economics are very questionable. The perception that he's building a mini-Silicon Valley here is ridiculous. He's not attracting startup tech-companies...so far, all I've seen are startup restaurants and fringe companies. Why would a tech company come to Vegas? There's not enough young, talented college grads to support their work force.
Large storage containers?
Im impressed with Tony Hsieh.. This guy hits the ground running and taking this downtown idea head on. Go Tony.. Future Mayor of Vegas
The naysayers were there 20 years ago went this process started, and they'll still be there 20 years from now. But Downtown 3.0 keeps on moving forward.
Sinatra711... exactly what did YOU do for your community today, this week or this year?
I'm excited and believe the downtown transformation will be a success for one single reason. Tony Hsieh has his personal money at stake and not some form of government subsidy payed for by the taxpayers.
Tony Hsieh(Zappos), Ben and Jerry's(Ice Cream), Starbucks, 10,000 Villages and many other Corporations while in business to make money, still show tremendous Social Responsibility. I fully support All of them and hope everyone else does also. Downtown Las Vegas will be a far better place thanks to Tony. His alliance with Political leaders their shared vision will be a benefit to all.
Apparently sinatra711 and others have not been downtown in a few years. All the "non-activity" is a big improvement over what was not really happening.
The problem a lot of the nay-sayers have is that all this is being done without the need of Obama or his thugs. It's private money and the money is actually creating real jobs and real opportunity.
I would bet Tony Hsieh and Zappo's have created more real jobs in Las Vegas, in less time than your messiah has nationally.
So stop reading this website (with Internet backup most likely provided by a company Hsieh helped locate to Las Vegas, and go see what's happening downtown. I mean, really look.
Very easy to be naysayer/skeptic and feel like you're smart, and aren't going to fall for any of these ideas that are "destined to fail". Much more difficult to actually have faith in what they're doing.
Most of downtown is a dump. It's not like this is negative gentrification that's destroying different cultural areas. These are probably crime-ridden locations that need to go in order to make downtown safer.
Another point to Sinatra711 "There's not enough young, talented college grads to support their work force."
True point, but I do believe that Steve Jobs was not a college graduate and look what that dropout did...
So I would look at the talent pool, not the fancy degree pool...
<<The Downtown Project, founded by Zappos CEO Tony Hsieh and other investors to spearhead revitalization efforts, will announce today a partnership with Venture for America to bring new college graduates for two-year stints to help startup businesses get off the ground. The hope is participants will make their move downtown a permanent one>>
It is a great and noble idea, but remember: It's Vegas. Known for casinos and gambling. Start up companies are a good thing but will they stay? And so far none have been mentioned or even any ideas on what these companies would be.
I'm all for revitalizing Downtown. I personally liked Downtown and if it can move up a few notches with other non-gaming companies, great. Make it like other downtown areas across the country. The first thing that should come downtown and forgive me for it not being a high tech company to draw young smart kids but the area needs an Albertsons or a Smith's. Downtown needs it's own specifically designed "strip mall" with everything within walking distance of the apartments, homes and places of work that are already there and what could be there in the future.
You want and need the total package for downtown for it to draw professionals and non professionals to actually want to live and work in the area and not make the area totally reliant on tourism and gaming. A young smart person working at one of these future start up companies does not want to live in the cookie cutter neighborhoods of Vegas; they want to live in an area close to work and with a lot of variety. Heck the young and not so young who already work downtown may want to move closer to their work but don't want to live in an area where you STILL would have to drive your car to get groceries or a prescription filled or taking your clothes to the cleaners.
Maybe he'll get lucky and be successful with this venture but I think it's going to take awhile. The area needs someone like him with youth vision and no relationship to any of the casinos. He has his work cut out for him.
Det__Munch, I agree with you. But rather than a huge supermarket, I think a Trader Joe's, or something similar, would be more appropriate. Something a bit more specialized.
I'm guessing that Hsieh has some ideas. I know he's been working on this for a while.
The only reason most people think we do not have college educated people in Las Vegas is that you do not need a degree to wait on tables or deal cards. Next time your in a casino ask your service person if they have been to college, the answer might just suprize you. Currently there is not a huge marker for people with college degrees in Las Vegas and the gaming industry likes it like that!!
Vegas is generally not a good career move for many of those young professionals they speak of.
Put almost any firm in Vegas including Zappos on your resume and you risk not being able to get hired for a decent position when it comes time to move on.
Being in the HR business we highly scrutinize anything that says UNLV or CSN before passing it up. It's less risky and we take less abuse from hiring managers if we forward up out of town applications.
Comment removed by moderator. - -
yup, us 50yr old software engineers (who live downtown) are just obsolete and not qualified.
AWESOME NEWS.
Tony Hsieh for mayor. :)
THANKS TONY.
Comment removed by moderator. Personal Attack
Buy all the rat infested motels on Fremont Street and turn them into a retro resort area. The steel container-to housing concept could become human broilers under the summer sun. Good luck and have fun.
@askmrmark: Wow. Is there anything the Hate Obama crowd can't use as an excuse to bash the President? In any case, I'd like to ask you this: How is it possible that Hsieh and others have invested so much money in downtown the past three years? I thought that the "Socialist President" had raised taxes and put in so many new regulations, it was impossible for any responsible businessman to invest in the Obama Economy? I mean, I don't get where Hsieh found the money to invest: Didn't Obama tax it all to hell? Why is Hsieh even risking his money? If the Keystone XL pipeline isn't built, clearly nobody will want to live downtown. Plus, ObamaCare! ObamaCare! ObamaCare!
OK, enough of my sarcasm. My point is: The Obama administration has never thought government was the solution to everything. It's advocated public-private partnerships to help fill the void left by frozen credit markets, and to encourage private businesses to take risks they might not otherwise (particularly if they answer to shareholders, who think quarter to quarter). And while I bet Hsieh/Zappos is taking full advantage of the incentives the WH and Congress have passed -- hiring tax credits, green energy credits, etc. -- let's assume most of Hsieh's efforts have had nothing to do with D.C. Guess what? The City of Las Vegas has poured millions in taxpayer money into Hsieh's plans, via tax incentives and the amazing, below-market price for which it sold City Hall to Zappos. Am I upset about this? Well, as a Hendersonian, yes. But as a Southern Nevadan, no: The LV City Council made the right call to invest in Hsieh, who's already proving to be a great job creator for the city.
Anyway, despite my snarky comments about your anti-Obama reflex, my real point is: Let's agree that good things are happening downtown. Good things are starting to happen all around the Valley, with "Coming Soon" more common these days than "Going Out Of Business" sign-twirlers. Feel free to assign credit wherever you want, but instead of obsessing overing national politics, why don't we Nevadans put that all aside, pick ourselves up and do whatever the hell we need to do to get back on our feet?
Some sarcastic comment mentioned needing a Quick Care in case Zappos employees get mugged. Seriously, it's time to start recruiting businesses like that. You can't buy all your groceries at a weekly farmers' market. They need stores - markets (Fresh & Easy not Whole Paycheck)within walking distance. Love you, James, but not everyone can afford Staci, Hairstylist to the Hip. This is all very exciting. I wish I was 40 years younger!
Thanks to both Sinatra711 & TeanSG1 for confirming my thoughts about "the-glass-is-half-empty" crowd.I have little doubt these two fine gentlemen have never invested a dime of their own into a business venture because that would mean taking a risk and they are "risk-adverse." I, on the other hand, have done it many times. Sometimes I won; sometimes I lost. That's what free enterprise is all about. So I salute Zappo's for taking risks, investing money and generally being a good neighbor. What Zappo's does with the property is strictly up to it. If Sinara711 or TeamSG1 can do better, then let them put their money where their mouths are. Don't hold your breath waiting for them to do so.
Tony Hsieh is living in a movie. If he thinks that by relocating his headquarters downtown and buying a few holes in the wall is going to get the city interested in dowtown he is dellusional. I'll bet most Zappo employees will not even live close to downtown because it's dirty and has bad energy. Aside from the Freemont Street experience there is very little down there to offer families or even tourist. The mob museum will help more than Tony's Zappoville. The Fresh and easy down Freemont went under due to losing more in the way of shoplifting than it's bad business. Let's be honest with no Fresh n easy, Trader Joes, Whole Foods, or Sunflower Market soon to be (Sprouts as of May 1st) would you want to live down there. There is'nt even a decent regular supermarket or good bakery down there. The area is teeming with the homeless and criminals. You never feel safe at night. Let's see if the Mayor gets off her fanny and actually walks down these streets at night with Tony and no bodyguards. Somehow I dont think it will happen. There's no sports arena or stadium to enjoy sporting events. If Tony and the Mayor want to do something about the urban blight down there, why dont they do something about 2427 South Las Vegas Boulevard across from the Sahara. How bout getting a Trader Joes or a neighborhood Walmart in there before 2040. The place sitting vacant for decades would be a gold mine with all kinds of traffic from tourist and locals in the area and bring good energy to that corner of downtown. Build a major facility to accomodate the homeless with their various problems that keeps them off the streets until their cleaned up and get all the punks off the streets along with a few things people might enjoy and we would'nt even need Tony's fantasy. If Bugsy saw this he would be turning over in his grave.
So much for my First Amendment Rights!! I was just trying to offer some ideas that would help the Zappoville employees for when they need urgent medical attention due to the dangerous elements they will encounter when living downtown. It could save many many lives!!!
@smartone618 - What did I DO FOR MY COMMUNITY TODAY? Since you asked...I spent 1/2 the day at my church sorting donated food and Easter baskets collected over the weekend to be distributed to needy families in the community. I volunteer on a weekly basis and my wife and kids do so as well. My kids actually prefer to volunteer during their summer, spring, and winter breaks rather than sit on the a$$ playing video games or screwing around at the mall. On the economic side, I spent money at the grocery store and ate dinner with my family at a restaurant today....Is that good enough for you? or do I have to burn stick figures and smoke pot downtown? What did YOU do to help your community today?
@Jerry Fink - You have no idea what my personal situation is. I've started 3 companies with 2 of them failing miserably. The 3rd time was a charm and I'm doing very well now. I've also worked in a corporate environment and understand very well the economics of what it will take to revitalize the downtown area. I've also spoken to many entrepreneurs in So Cal and discussed the reasons why they don't move their businesses or startup their company in Vegas...their #1 answer is "Lack of college grads...young, cheap, smart workers who are willing to put in the time & energy to work in a startup environment".
In California you have UCLA, USC, UCSD, SDSU, UC BERKELEY, UC DAVIS, STANDFORD, UCSB, and many more Universities & Colleges that are pumping out eager, smart, and low cost workers. They may not be graduates, but there's a larger pool to choose from. It's fact, I'm not making this up....
Based on what I've seen, the stuff that Hsieh is doing isn't enough and doesn't have the right ingredients to make a big difference. Instead, I prefer the development of the new performing arts center...it's sorely needed and attracts people with money to the area. Along with the small stuff that Hsieh is doing, the burning man and First Friday events aren't good long term solutions. The hype machine that the local rags & media is putting behind this stuff is hilarious....
It will be fun to watch this from a distance. 10 yrs from now, we'll see what the results are.
The only thing here though, is that downtown is changing. 5 years ago, I wouldn't walk down the block away from Fremont without a police escort. Now I feel fine almost all the way down to Eastern and Fremont, where the Blue Angel Motel is. It's a slow change, but change none the less. All these things take is time, money, and some encouragement from the community.
Why would anyone be excited about Zappos coming downtown. Their retail stores have failed here in the valley. Im guessing most zappo employees will not want to live in seedy downtown, unless Tony inbetween the lines threatens to fire them for not joining the reduction. There needs to be more stuff down there. The transgender restraunt proposed for the neopolis is going to scare families away from that part of downtown. Maybe the Liberace museum there would have been more appropriate. No pro sports, no great bakeries or food markets means Downtown is a no go. Good luck downtown because you're going to need it.
It's Tony and his co-phoenix mbrs time, money, and energy. Why do so many ppl spend so much of their own time and energy being so negative about seemingly everything that allows posts?
It's easy to throw some money around and 'lure young talent' IN - The difficult task with downtown is how to lure the hordes of crack heads, pimps, vagabonds and homeless OUT?
It is very easy to get the crackheads out, buy the motels and slums they stay in. (Great Job, Mr Hsieh) I hope he buys the boarded up Western too! If anyone has played SimCity, you know that you can build anything you desire if you have enough capital (Mr Hsieh, build it and they will come).
As for building a Supermarket, it is not needed. Too much parking spaces. Just build a Fresh & Easy or ask the mom & pop shops there to expand their products. (most products are actually cheaper in the mom & pop shops then at the suburban Albertsons, 3 of them even deliver to your house)
Up until a month ago, I use to live downtown. I would see Mr. Hsieh everywhere I went. (jogging, The Beat, Thai Vegas, Gold Spike) He practices what he preaches, and he'll bring the right people along with him.
@Sinatra711 & TeamSG1
I moved here last month, inspired by the Downtown Project. I admit, at first I felt a little duped. Aesthetically, there's still a lot to be desired. I understand that the city has one failed redevelopment project after another, but that's the city - and this is Tony Hsieh. He's not playing with taxpayers dollars, he's using mostly his personal stake and taking cues from other redevelopment project. I for one, am extremely excited to be here and can't wait to see what happens the next 5 years.
I recently blogged about Why I Moved to Las Vegas, read it if you're interested:
http://jaysoriano.com/downtown-project/