Casino news source: Las Vegas Business Press - http://www.lvbusinesspress.com
North Las Vegas business leaders set to redefine city's center
BY ARNOLD M. KNIGHTLY
North Las Vegas' downtown area is about to get an extreme makeover.
An influx of new investors combined with mature businesses has the area poised to remake itself in the next decade, say city officials.
Mike Majewski, the city's economic development director, estimates $1 billion worth of private capital will be invested during the next six years downtown, which is roughly bordered by Las Vegas Boulevard North and Civic Center Drive and East Lake Mead Boulevard.
That figure does not include the few hundred million dollars the city plans to spend developing and building a new government center, which will include a new city hall, police station and other municipal offices and meeting rooms.
Majewski said the new government structure should help anchor the new projects planned for the area.
"It should create synergy with downtown and act as a catalyst," Majewski said. "It shouldn't just be looked at as a government building, but how it can also contribute to the additional investment and employment opportunities for downtown."
MEETING OF MINDS
Majewski and Larry Bender, the city's redevelopment agency manager, hold monthly meetings with a core group of major downtown investors.
The meetings include representatives from two gaming properties, Silver Nugget and Jerry's Nugget, as well as Calif.-based Legaspi Co., IASIS Healthcare (owners of North Vista Hospital), Area Health Education Center of Southern Nevada and attorney Dominic Gentile, owner of the Palomino adult nightclub as well as surrounding property.
"It's development done right. All the stakeholders are brought together and nobody works in a vacuum," said Joe Valdes, Silver Nugget Gaming president.
"We want to build the excitement for downtown North Las Vegas, not just their individual projects," Majewski said. "We want to instill in them that they are part of a much greater entity out there. By working together their projects can be even more successful."
The Silver Nugget, Legaspi Co., and Area Health Education Center are looking to break ground on their respective projects in 2008.
The Silver Nugget casino could spend close to $500 million on an expansion that will include a new hotel tower.
The Legaspi Co. plans to develop a 500,000-square-foot retail center on 33 acres across from the casino.
The non-profit Area Health Education Center plans to develop a four-story office building with 60,000 to 80,000 square feet of space.
The hospital has no immediate expansion plans, but has expressed a desire to redevelop its 185-bed facility.
Jerry's Nugget and Gentile are also discussing redevelopment plans.
The casino may add a hotel tower, while Gentile is looking to develop some excess land around the Palomino for non-adult use.
"We fully see this as a partnership," Majewski said. "We're making sure we're in lock-step with the private sector and the people who are making major investments in our downtown."
Meeting discussions involve sharing costs on traffic studies and infrastructure, and synergy between developments.
A PLAN IS BORN
The city is in the process of choosing a firm to help develop a master plan for the downtown area.
Majewski said the city would like to develop a pallet of colors and sign standards to help unify the new look.
Bender emphasizes that while the city's role is as a facilitator and cannot force private developers to work together.
However, the major investors have been receptive to working with the city.
Bender said whatever is developed in the downtown area must appeal to the whole valley not just the surrounding neighborhoods.
The surrounding area, defined by its 89030 ZIP code, is the oldest part of the city and one of the most mature areas in Clark County.
Some of the surrounding 15,300 houses date back to the 1950s, while many retail structures were built in the 1970s.
City hall opened in 1966, two years after the Silver Nugget.
New investors and city officials see a downtown that will cater to the local population while drawing visitors from all over the valley.
"We want to take advantage of the whole growth of the valley, not just some peripheral view of what downtown should be," Majewski said. "How can it interact with the whole valley and take advantage of the prosperity throughout?"
According to numbers provided by the city, 30,286 people live within a mile of downtown. The number increases to 203,312 at three miles and 453,463 at five miles.
The average household income at five miles is $49,051.
THE SILVER LINING
City officials are hoping the new owners of the Silver Nugget, located on Las Vegas Boulevard North will play a key roll in the city's vision.
Developer Jeffrey Fine bought the 24.7-acre site in January for $24.1 million under his new gaming company, Silver Nugget Gaming.
The property will be designed to be the entertainment center for the downtown area.
After purchasing the mature property in January, which included a casino and neighboring RV park, Fine and Valdes were soon meeting with city officials, led by Majewski and Bender, to brainstorm ideas on how to redevelop the area.
Some of the land is being considered by city officials as a site for the new government complex, something Valdes hopes happens.
While the casino was busy changing hands, a California developer with an affinity for mature Hispanic areas was purchasing 33 vacant acres across the street.
The Legaspi Co. bought the land from the city for $20 million with plans to turn it into a retail center catering to the whole valley.
Legaspi said he talks often with Valdes, just kicking around ideas.
"We want to be able to integrate our talents and be complementary in our tendencies and uses," Legaspi said.
Arnold M. Knightly writes for the Business Press' sister publication, the Review-Journal. He can be reached at aknightly@reviewjournal.com. |
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