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Zappos finalizes City Hall lease
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LAS VEGAS REVIEW-JOURNAL
Phew.
The agreement credited with paving the way for about 2,000 tech industry workers to move to downtown Las Vegas while taking a potentially costly white elephant off the hands of city government is now official.
Leaders of online shoe retailer Zappos.com announced Tuesday they signed a 15-year lease on the City Hall building.
The deal, agreed to in principle late last year, ensures Zappos will make downtown Las Vegas its headquarters and help city government avoid the ugly scenario of spending taxpayer money to move into a gleaming new City Hall on Main Street while the old City Hall remained vacant.
"I'm really excited that it is not going to be imploded because that was my first thought years ago when Oscar said they were going to build this new City Hall," Mayor Carolyn Goodman said in response to the signing, referring to her husband, Oscar Goodman, who was mayor when Zappos hatched its plan to move from Henderson to downtown .
The lease agreement is between Zappos and an offshoot of Resort Gaming Group called City Hall, LLC, both of which are led by Andrew Donner. Changes to the deal described as "nonmonetary" and not increasing financial risk to the city will still need approval from the City Council, possibly next month.
Although Donner expected the deal to finalize, he said he was relieved to get the signatures on paper because it means no more worrying that it could unravel and leave Las Vegas city government in a similar situation to North Las Vegas, which recently made national headlines for moving into a gleaming new city hall despite struggling with major financial shortfalls.
"There has been a lot of speculation, are they going to screw up like North Las Vegas and this thing is not going to happen," Donner said in a phone interview after the announcement.
Under a development agreement Donner negotiated with the city, his firm will buy the City Hall building for $18 million, a deal scheduled to close April 1, and lease it to Zappos for an undisclosed amount.
The complicated transaction required support from the City Council, Zappos CEO Tony Hsieh and high-ranking officials from Zappos parent Amazon.
Zach Ware, who is leading the Zappos "downtown project" on behalf of Hsieh, estimates it will take another $40 million to complete the renovations necessary for Zappos to occupy the building in 2013.
Still, Zappos workers are excited about the pending move and some already have relocated to downtown Las Vegas.
"The building is in the middle of a community we really enjoy. That is a huge plus," Ware said. "To be a part of maintaining and investing in a building like City Hall is kind of a once-in-a-lifetime opportunity."
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hdstmf - it seems it has been awhile since you've been downtown. You are forgetting the historic John S. Park, Beverly Green, Southridge and Huntridge neighborhoods which are all residential located SE of downtown. These neighborhoods are filling up with young professionals who make six figures and are pouring money into their homes. They are very involved with their local representatives (who live in these neighborhoods) and committed to improving their neighborhoods. Zappos has already invested in over 50 businesses downtown - I would say that demonstrates a committment. Their employees can snap up a 4-bedroom, 3-bath, mature landscaping on .25/acre for around $100k, and walk, bike or take the bus to work. There are several grocery stores within a mile of the center of these neighborhoods. I encourage you to get out of the suburbs, enjoy the news bars and restaurants downtown and walk the tree-lined neighborhoods before you judge.
All those Zappers moving downtown will have to buy out all the housing currently occuppied by law offices. That's a small area east of the strip. Beyond that are substandard houses and apartments. The west side is dominated by UMC, medical offices and some very exclusive neighborhoods. The northwest is gangland. Southeast and west is the barrio. There are no family shopping businesses (supermarkets, clothing stores, etc). Zappos employees will find they are cutting commuting to work for commuting to shopping. That factory outlet hardly counts. As usual, blue sky projections are inflated. Reality soon follows.
Is this the same company that contracts with temporary agencies hires workers and when it is time to hire workers full time they fire them. Zappos is not all what it appears. The city fathers needed to check out the companys policies toward workers. Just because a company is going to lease a building doesn't make them a good business for the city. Zappos no good I wouldn't buy a pair of shower shoes from them.
Thank you, Zappos! I know it's not purely altruistic on Zappos' part, but us "crazies" who have lived downtown for years and have worked toward improving the urban quality of life truly appreciate the efforts. For those of you who don't know where people are going to live downtown, I suggest you drive through the Scotch 80s (where our Mayor lives), John S. Park (voted one of the top neighborhoods in America in 2010 by the American Planning Association), McNeil neighborhood and several urban loft spaces in the heart of downtown. There is not a more appropriate location for Zappos and their employees, and we downtowners are looking forward to the momentum they bring.
They moved their homes downtown? Exactly where are they going to live downtown? I can't imagine anyone being excited to work downtown. I'd imagine they got a good deal to move there, I can't think of any other reason to work downtown.
Mike Vegas, I have a question. What gopher hole have you been living in? This deal has been covered multiple times in all of the media. They did not "spring a surprise" on anyone (except it appears you). Try staying up on local issues if you want to "try" to comment.
Zappo's, welcome downtown. Keep up the good things youa re already doing.
Welcome Zappo's to Downtown- we need you and your vision- Gold Spike management & Employees wish you luck with all you do
MIKE VEGAS... based upon your comment, you have the intellectual capacity of a squirrel so the RJ should have just said....'Zappos is moving downtown' and anything more would have been overload.
Zappos and Resort are doing more for downtown than anyone else I know. If you would like to buy city hall or know anyone else that would, I am sure a deal could be made. Until then, shut the hell up and let people bring the excitement back to downtown LV.
City hall was not 'given' to Zappos but even if it were, the many more benefits that would come to downtown from them being there would have more than paid for it.
Get a life
DID WE GIVE IT TO THEM OR JUST BEND OVER AND LET THEM HAVE THERE WAY WITH US ????? ------- LVRJ SLOW DOWN ON ALL THE FACTS, IT'S JUST TO MUCH TO GRASP AT ONE TIME.