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Heavy construction resumes at Tivoli Village
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LAS VEGAS REVIEW-JOURNAL
Updated: Nov. 4, 2009 | 6:14 p.m.
Finally, construction is happening on a major local leisure project not named CityCenter.
After a 10-month slowdown, heavy-duty building work has resumed at Tivoli Village at Queensridge, a mixed-use retail, office and residential center at Rampart Boulevard and Alta Drive. The center’s developers, IDB Development Corp. of Israel and Great Wash Park of Las Vegas, set a December 2010 opening date for Tivoli Village’s 370,000-square-foot first phase. Construction on the center’s remaining 330,000 square feet is scheduled to begin shortly after the opening.
The building ramp-up will increase the number of construction workers at the site from around 50 to roughly 400, said Patrick Done, executive vice president of Tivoli Village at Queensridge. When the first phase opens, it’ll have as many as 500 full-time workers, Done added.
Credit the project’s pickup to hints that the economy could be bottoming out, and suggestions that retailers could be ready to bank on fresh sales potential.
“We began to see some signs that the fourth quarter will stabilize, and indications are that sales in 2010 could show some slight growth,” Done said. “We fundamentally understand that the way retailers and restaurateurs show earnings growth is by opening new units.”
Brian Gordon, a principal in local research firm Applied Analysis, said Tivoli Village’s renewed construction schedule would provide a small but important boost to the local economy.
“Every little bit counts. It’s extremely important when you have a project of this nature continue to move forward rather than shutting down altogether,” Gordon said. “Is it a huge number of jobs relative to our employment base? No. But every incremental employee means an income for that person and their household, and that’s important.”
Gordon added that resuming construction in today’s sluggish market would give Tivoli Village the pricing advantages that come from abundant labor and materials.
For Tivoli Village’s developers, though, the decision to increase construction activity came more from scarce competition among other retail projects.
Done said the $850 million final price tag on Tivoli Village’s build-out won’t change much. Plus, the companies are funding Tivoli Village with cash, so financing isn’t an issue.
But with major west-side projects such as bankrupt General Growth Properties’ Summerlin megamall mothballed indefinitely, opening by the end of 2010 will give Tivoli Village a head start on forming a loyal customer base among underserved consumers in wealthy areas including Summerlin, The Lakes and Peccole Ranch.
Gordon agreed that Tivoli Village “may fill a gap on the supply side of the equation.”
“But the ‘X’ factor remains,” he added. “Where will demand be? Will there be retailers willing to occupy the space, and will there be consumers willing to spend with those types of retailers?”
Done said the project is already 50 percent leased. Also, he said, retailers who initially signed leases on space at Tivoli Village mostly remain interested in the project, though they initially encouraged the project’s delay.
Grading and infrastructure work on the 30-acre site began in 2006, but by late 2008, tenants began questioning market conditions. At the behest of retailers, Tivoli Village’s developers slowed construction to a crawl in December to give the economy time to recover. For most of 2009, a small crew of 50 to 100 workers conducted only basic site work, such as grading.
With signs pointing to stabilization in the nation’s economy, retailers are ready to talk about opening. Tivoli Village must renegotiate leases to make sure retailers are OK with the project’s opening in phases, and to guarantee they’re happy with the new timeline. They’ve mostly been “very receptive,” Done said.
Done declined to identify retailers taking space, but a December Review-Journal article reported that tenants would include the Grand Lux Cafe, Tommy Bahama, David Barton Gym, Ritual Salon and Spa and AG Jeans.
Done said Tivoli Village would release a list of confirmed anchor tenants in about six weeks.
The developers have delayed the project’s 340 condominium units indefinitely, Done noted.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.
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- Tivoli Village
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- Rampart Boulevard
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- Grand Lux Cafe
- Tommy Bahama
- David Barton Gym
- Ritual Salon and Spa
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Bill, what can I say except...shut up! Why can't we hear some positive news without someone like you ruining it?
Well, it didn't take too long before someone tarnished the good news. Everything was going fine and then good old Bill brought us all back down. Thanks, Bill! Without people like you...we'd have no one to bring us down!!
Bill...guys like you keep recessions going because you're negative. For whatever reason, you take enjoyment out of things continuing to be bad. You're a loser.