Frequently Asked Questions

A. A world-class, mixed-use development complex consisting of an iconic high-rise gem and jewelry trade tower with both office and residential condominium units, as well as an enclosed jewelry retail shopping promenade. The center is planned to be a premier fully-integrated, service-oriented business hub catering to retailers, manufacturers, dealers and wholesalers in the diamond, gemstone, pearl, jewelry and watch industries.

A. Located in Las Vegas at the crossroads of Highways 15 and 95/515 and adjacent to downtown Las Vegas, WJC will be in the new master-planned community of Union Park.

A. Union Park is an ideal business location, benefiting from easy access at the crossroads of two major freeways (US Highways 15 and 515) that service most of the Las Vegas area. It is surrounded by other existing, successful projects such as: the new Clark County government offices; the famous Fremont Street "experience;" and the Las Vegas Premium Outlets, one of the most successful retail outlets in the U.S.

A. Union Park is a 61-acre development that is currently owned by the City of Las Vegas and will be divided into numerous parcels. Among the projects slated for completion are the Frank Gehry-designed Lou Ruvo Brain Institute, the Smith Center for the Performing Arts, three new hotels, a city park, and a pedestrian promenade surrounded by residential, office, and retail development.

A. WJC groundbreaking is currently planned for the first half of 2009, and the project is planned for completion in 2011.

A. The Trade Tower: The high-rise office tower will be open to the trade only, in a business to business format. Dealers, manufacturers, and suppliers from every sector of the industry will be present in the tower and will do business with each other, as well as with retailers who will frequent the complex year round.

The Retail Center: The retail jewelry promenade will be open to the public and will be designed to attract hundreds of thousands of consumers each year, comprising domestic and international visitors, as well as local residents.

A. The WJC is located just a few blocks west of Las Vegas Blvd., which extends south to the portion commonly known as the "Strip." The WJC location is approximately three miles north of the Venetian Hotel and Sands Convention Center, the location of the well-known JCK Jewelry Show. The site is also highly accessible from McCarran International Airport.

A. Every aspect of the project, from design to implementation, is being planned and developed to create a full-service jewelry business hub. Occupants in the trade tower will include leaders from all over the world and from every sector of the gem and jewelry trade. Tenants in the retail center will merchandise differentiated products from around the globe, providing a totally unique retail experience.

The center will include state-of-the-art security, whole-ownership office condominium units, secure shipping and receiving, gem grading labs and educational facilities, meeting and exhibition space, trade associations, a designated Foreign Trade Zone, trade shop facilities, banks, transport and ancillary services, and international restaurants. Beauty, ease, convenience, and efficiency will be bywords of the project.

A. Back in 1970, approximately 6.7 million people visited Las Vegas. By 2006, that number soared to nearly 40 million. Las Vegas has become the largest convention market in the world, with some 50 million annual visitors projected in the years ahead.

A. Seventeen of the 20 largest hotels in the U.S. are located in Las Vegas. The city continues to grow and develop, with some 170,000 hotel rooms slated to exist by the year 2010. Las Vegas has developed into a world-class city, with the technology and infrastructure to match. It is currently one of the fastest growing cities in the U.S. and attracts consumers from around the world. It has excellent regional, national and international access, with proactive support for new business and an entrepreneurial spirit.

A. Dealers and manufacturers from every sector of the trade will be represented in the tower: diamonds, colored stones, pearls, jewelry designers, jewelry manufacturers, watches, estate jewelry, packaging, and servicing. Gem trade laboratories, educational facilities, trade associations, shipping companies, and all ancillary services will also be represented.

A. Offices in the trade tower are for sale only, not for lease. The global dealers, manufacturers and traders who are taking office space own their units, giving them the ability to build equity over time and to control their immediate surroundings. The whole-ownership condominium model has been welcomed by the trade.

A. The tower is planned to be 50+ stories tall , and is nearly one million square feet in size. We anticipate that several hundred companies will be represented in the trade tower.

A. 1,000 Rentable Square Feet or approximately 93 Rentable Square Meters.

A. Units are sold in Rentable Square Footage, which can be defined in simple terms as Usable Square Footage of interior space plus a percentage of common areas within the walls surrounding the unit. Detailed definitions and technical information on how the areas are measured will ultimately be defined by BOMA (Building Owners and Managers Association International) which is a standard measurement in the industry.

A. The association fees will include property insurance (fire) and liability on the building. However, owners will need their own liability insurance as well as property insurance for everything inside their unit such as furniture, fixtures, equipment, and inventory . Property taxes will be billed separately to each owner.

A. Each owner is responsible for real estate taxes associated with their unit. Real estate taxes are paid directly by the individual owners and not by the Owners' Association. Property taxes can be estimated as approximately 1 % of the purchase price plus any supplemental assessments.

A. Buyers of the office condos will start paying their unit's property taxes and the common area charges when they close escrow and take title of their unit.

A. The overall purchase process is very simple and includes the following few steps:

Step One: Interested parties can sign a non-binding Letter of Intent (LOI). This LOI states your interest to purchase and secures your position for unit selection. Under the LOI, no deposit is required.

Step Two: You will be notified that it is time to select a specific unit location and will be given two-three locations to choose from. Once you have made your decision, you will be sent a link to a website where you can review all purchase documents prior to signing. It is this time period when you should have your legal counsel review your documents and answer your questions.

Step Three: A Purchase and Sale Agreement (PSA) will be sent to you for execution. The PSA will be a binding contract and will require a 25% deposit.

Step Four: During your escrow period, you will be required to finalize your unit floor plan and tenant improvements (if any). Once the project is completed and a Temporary Certificate of Occupancy is received, you will be able to close escrow. At this time, you will be required to complete your transaction. Once you have deposited final funds and completed your paperwork, the escrow will be closed and you will receive your keys.

A. Subject to availability and logistical requirements, space is allocated on a priority basis depending on when you sign a Letter of Intent to purchase an office. In addition to this first-come, first-served approach, the developer will provide options for purchasers to choose their own space based on size and space requirements.

A. Yes, whether the transaction is all cash or buyers need to obtain financing, buyers are responsible for securing the purchase price prior to the close of escrow. Buyers will be required to show proof of funds or lender commitment within 45 days of signing a Purchase and Sale Agreement.

A. Yes. The project will have pre-approved lenders to aid in buyers' financing needs, subject to buyers' credit approval.

A. A buyer can change the name of the company that is purchasing the unit up until the time he/she signs a binding Purchase and Sale Agreement. Purchase agreements are not assignable, except to controlled affiliates of the buyer. Once the purchase agreement is signed, a buyer can add additional buyers (until the close of escrow), however the original name on the purchase agreement remains and that company is held responsible under the contract.

A. Many of the companies who have opted in to the WJC at this point will use their space as wholesale sales and distribution offices for products manufactured and imported from overseas. Some will set up their U.S. headquarters in Las Vegas, while others will use their office as an extension of their global sales network. Some light manufacturing and trade craft will be conducted in designated areas of the tower to adequately service clients and retailers. The project will also have trade shop operators to service companies who will want such support to best service their clients.

A. The top floors of the tower building will be designed exclusively with for-sale residential condominium units. The residences will range in size from single to three-bedrooms. These units will have magnificent views, a private porte-cochere entry, a private elevator bank, and access to a private club, spa, pool, and fitness center. Pricing has yet to be determined on the residential condominiums. As is customary, there will also be a condominium association fee, which has yet to be determined.

A. No. We will only be licensing or leasing space in the retail center.

A. The retail center will be approximately 165,000 square feet, consisting of two floors of jewelry shops and restaurants open to the public.

A. At this time, the retail center is planned to consist only of jewelry-related shops and restaurants. Each retailer will be carefully selected based on its anticipated product mix and price points. The retail center will focus on product differentiation, vendor integrity, consumer education, convenience, quality, value, service, and a unique shopping experience.

A. They will start at around 500 square feet (approximately 46 square meters) in size and will include much larger leading anchor stores.

A. We expect to attract some well-known existing brands but also new brands with exciting differentiated products from both domestic and international companies. We want consumers to truly "see the world" when they come to the World Jewelry Center retail promenade.

A. We are generally targeting middle to upper market retailers that focus on quality, value, and service. We envision every level of shopper coming to the center, which will offer a unique array of high-quality products with appealing price points.

A. The jewelry stores, housing tradespeople and products from around the globe, will become an attraction in and of themselves, exposing buyers to a combination of jewelry stores and products that do not exist anywhere else. The WJC will become known worldwide as a premier retail jewelry center.

A. Yes, adequate and secured parking has been planned. There will be a multi-story parking structure adjacent to the office tower and the retail center with self-parking for employees and valet parking for the residents, guests, and visitors of the retail center.

A. Security is a vital aspect of the building design. There will be a very high level of security maintained throughout the whole complex, from the interior to exterior. The security system will include a combination of electronic surveillance, access controls, and manned security stations.

A. Yes, there will be a vault in the FTZ/Security area to receive shipments. The building is also designed for individual safes within the office suites. There will be a weight and size restriction for each floor within the tower.

A. Yes. We have received formal approval from the U.S. Department of Commerce’s Foreign Trade Zones Board, and the World Jewelry Center is now as Site 7, to be operated by the Nevada International Trade Corporation (NITCO).

A. U.S. duty would not have to be paid on dutiable imported goods at the time they are brought into the U.S. (Foreign Trade Zone). Duty would generally be paid when the goods leave the FTZ, and no duty will be paid for merchandise that is re-exported. There are also transactional cost savings associated with a Foreign Trade Zone. For more information on Foreign Trade Zones, please visit: http://www.nevadadevelopment.org/images/ftz1.pdf; or http://ia.ita.doc.gov/ftzpage/.

Foreign Trade Zone Benefits

• Las Vegas is the new business gateway hub of the southwest U.S. and a key "destination" city, accessible from most anywhere.
• All major transportation means and carriers are represented in Las Vegas.
• Customs Brokers will be on the WJC premises.
• Merchandise entering the FTZ may be:

— Assembled		— Re-labeled		— Mixed		— Processed		— Displayed
— Cleaned		— Repackaged		— Tested		— Manipulated		— Salvaged
— Destroyed		— Repaired		— Stored		— Manufactured		— Sampled

• FTZs were created to serve U.S. national interests by lowering the cost of production and distribution in the U.S.:
- Cost savings through tariff relief.
- Logistical benefits: Seamless transactions (i.e., time savings through less paperwork).
- Weekly entry benefits reduce Customs Broker fees and substantial merchandise processing fees.
- Direct delivery reduces inspections/delays at borders/docks.

• Deferral or even elimination of duty fees:
- Duty is charged only when goods leave the FTZ and enter the commerce of the U.S., resulting in cash-flow savings.
- No duty is owed on goods that are re-exported.
- Goods can be stored in a secure environment indefinitely within the FTZ.

• Return on Investment is normally 9 to 12 months from start of project (application, consulting fees, FTZ systems, activation).
- Significant duty deferral on average inventory in first year; capital cost each year thereafter.
- Duty elimination on exports and scrap.
- Assembly /Manufacturing may result in lower duty rates for the finished product.

A. Yes. In its very business friendly environment, the State of Nevada currently has no corporate income tax, no personal state income tax, nor any inventory or franchise tax. We recommend that you consult your tax advisor for more information on how this may relate to your individual situation.

A. Please see www.nevadaimmigrationcenter.com and/or consult an immigration specialist.

Please see www.lasvegasnevada.gov, www.nevadadevelopment.org and/or consult a business professional.

Please see the following websites:
www.lasvegas.about.com
www.lasvegasnevada.gov
www.lasvegassun.com
www.lvchamber.com
www.co.clark.nv.us
www.lvcva.com/index.jsp