19 February 2007

City green-lights tax break for Las Vegas Premium Outlets

The move came less than a week before the city held a meeting of all Union Park and "Union Park District" developers to get a status check. The mall is considered in the latter group and was also one of the featured developments at the Feb. 13 meeting. That meeting hinted at new competition for struggling downtown hotels among new residential development, the World Market Center and the World Jewelry Center.

Spearheading the event was residential developer Newland. Plans for Union Park call for 3,200 residential units, or 5.2 million square feet. "The first phase will be around 200 homes," explained Newland Communities Vice President & Development Director Rita Brandin. "There'll be 500 to 600 under construction in the next two years." Occupancy is expected to begin in 2011.

Newland will be dabbling in retail, as well, developing some of the 365,000 square feet of retail on the 61 acres. A portion of the housing will be built above the retail space, much like The District in Green Valley.

Brandin said those similarities end with the two simply being retail/residential mixed-use developments. "We want to get the retail situated at the base (of Union Park), then build the core residential neighborhoods up."

Don't expect the typical Southern Nevada master-planned community, either, the developer promised. "This is really a mixed-use community comparable to downtown Chicago or the revitalized neighborhoods in L.A., near the Staples Center." Low-rise lofts will start in the $300,000-plus range, she adds.

But there will be a Las Vegas twist: The Union Park site will be host to a 60,000- to 100,000-square-foot casino. The gambling will be accompanied by a 1,000- to 1,500-room hotel. Other hospitality offerings are scheduled to include another 750 rooms in two non-gambling hotels.

Newland is now in talks with a company to develop a "boutique hotel," according to Brandin. "The boutique hotel will anchor the north end of (Union Park's planned) Symphony Park," she said. "We are in negotiations with a branded boutique hotel."

The city is projecting that the development on the 61 acres will be advantageous for the Las Vegas economy. When build-out is completed around 2012, the annual revenues to the city are projected to be $43.6 million, according to Restrepo Consulting. That includes about $5 million a year in gaming revenues and another $2 million for the city's share of retail sales.

The municipality's share of the property would equate to a $36.5 million annual impact. The 61 acres itself is expected to be worth $6 billion at build-out.