EDITORIAL: Luck be a lady? - Opinion

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Jul. 06, 2008
Copyright © Las Vegas Review-Journal

EDITORIAL: Luck be a lady?

Mayor says, 'This is no giveaway'

At the northern edge of downtown's Glitter Gulch, just south of the old post office along Third Street, Las Vegas redevelopment efforts have a toehold of notable success in the Hogs and Heifers tavern and the highly rated Triple George restaurant.

But in February 2006, right across the street, the Lady Luck casino closed, putting 700 people out of work.

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The owners promised a renovation and vowed to reopen within a year. They didn't.

"For the past several years I have seen a rotting corpse," the always silver-tongued Mayor Oscar Goodman said of the property last week. "The Lady Luck structure has been a blight."

It seems Andrew Donner of the Henry Brent Co. had trouble putting together the financing to renovate and re-open the Lady Luck. So he brought in the Hollywood-based CIM Group, which has spent a year negotiating with the city for a small park and other property around the old post office to the north.

Officially, CIM officials say they need more "elbow room" to pull off a Lady Luck revival. Over time, that "elbow room" has grown to include 200,000 square feet north of Stewart Avenue between Fourth Street and Casino Center Boulevard -- locale of the old post office and the current municipal bus station.

"That block has potential for unrestricted gaming," explains Scott Adams, director of the city's Office of Business Development.

Such zoning would increase the value of the land in question from $15 million to $28 million, assessors say.

The Las Vegas City Council voted unanimously Wednesday to approve the CIM plan, offering the land in question at $12 million below assessed value in exchange for an undertaking from CIM to invest at least $100 million on Lady Luck renovations and begin construction by Dec. 31, 2009 -- completing the project by Dec. 31, 2011.

The council approved the plan over the objections of Chris Bohner, research director for Culinary Local 226, who warned the markdown on the property price "sets a very dangerous precedent for the city. ... Every other casino developer in this town ... they are going to ask for this deal, too."

Mayor Goodman criticized the union for trying to scuttle what he sees as the best available proposal to reopen an empty property.

"This is no giveaway," the mayor said. "This is not a candy store. We are getting offers for land when nobody is buying land."

Both Mr. Bohner and the mayor are right. But -- at the risk of invoking George Orwell -- the mayor is more right. The City Council does have an unfortunate -- almost incestuous -- tendency to offer what appear to be sweetheart deals to existing downtown land barons, forgoing the opportunity to issue public invitations to bid that might draw even more attractive proposals from parties yet unknown.

That said, however, Mr. Bohner's own motivation is puzzling. Why would a local union not want to see 700 -- or more -- jobs restored to the struggling downtown? Does the Culinary want to put up $100 million or more on a plan of its own to expand or build a new casino downtown? Does it have a better candidate with checkbook in hand? Or would it rather see these properties stand vacant than have them opened by parties who refuse to cut them in for a piece of the action, in advance?

The downtown has been in an economic doldrum for years. The underlying problem is structural. With the exception of the Golden Nugget, most downtown hotel/casino properties stand on too small a "footprint" to allow expansions with the larger rooms, express service elevators and other amenities necessary to compete with newer properties along the Strip to the south.

The answer is to get some bigger, consolidated pieces of real estate into the hands of developers who will do just that.

In years past, an attitude of protectionism blocked entrepreneurs from entering competition with the existing downtown casino barons. Things seem to have gotten bad enough that the City Council is finally willing to welcome anyone with a bankroll who wants to build or renovate a downtown hotel.

Good. That's more of the fresh blood the downtown needs.

Though someone should at least review this deal, to find out what happens if CIM fails to meet its promised deadlines.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. M.BURNHAM wrote on July 07, 2008 11:43 AM: As one of the owners of the property I would like to see it go for the best offer. That propery has been in my family for over 50 years. The original owner was Frank Garside who was my grandfather, Postmaster of Las Vegas for 30 years and started the Review Journal. Some consideration should go to this history. Another owner was my father Ray Germain who helped start the Las vegas Sun, was a UNR Regent and a State Senator again someone who helped Las Vegas. The propery is in a good location. Thank you Mary Germain Burnham jnlv wrote on July 07, 2008 08:59 AM: LV Paco, this is one suburbanite who loves downtown! When I have friends who come to town, after one night on the strip, we take them downtown. Everytime, they've liked it more than the strip. The street musicians, art, and general atmosphere is charged with energy and fantastic! Everyone else must enjoy traffic, parking nightmares, and $20 drinks - It must be amazing to live there and see the revitalization! Enjoy!! LV Paco wrote on July 06, 2008 07:25 PM: I see how closed minded are those who live in fake suburban communities. Please continue to rant about how dingy Downtown is. I am glad that I live in Vintage Vegas, in the Arts District no less, and support the wonderful revitalization of this part of Vegas. Downtown is successful due to the fact it thrives on its past and not the fakery of summerlin and the Strip. Keep up the good work Mayor Goodman and my Councilman Reese. We Downtowners support you!!! Moose Vegas wrote on July 06, 2008 02:19 PM: Wow, Casinocon, A Funbook Freddie who actually owns a computer... Anyway, appealing to the bottom feeders with coupon books and banking on 'Captive' tourists: those who book rooms downtown not realizing that it is miles away from the strip, is not a viable customer base for a Casino...just look at the rest of downtown. Go ahead and remodel Lady Luck, it can't hurt anything. The real problem lies around what downtown is. It is the remnant of prosperity which is long gone. Until all of the parking problems and homeless issues are solved (never gonna happen by the way), downtown will be dingy. casinocon wrote on July 06, 2008 01:49 PM: Binion's (until Terry Caudill took over) used to send me $15 free play every week. I used to travel downtown to use it. Now it is gone -- Terry what gives???? -- and so have I, as well as many other players who miss the Binion's freebies. It's very simple, a free buffet and/or free play will bring in the gambler's every time. I have no idea why the casinos don't understand this simple FACT! No other downtown hotel (and I hold every players card) will extend the kind of offers that bring us from the suburbs. Hello COAST casinos -- Main Street, Cal, Fremont . . . until downtown wises up and lures the locals, they can rot. LV Paco wrote on July 06, 2008 10:49 AM: I have lived Downtown for three years and have enjoyed and have been a part of the Urban renewal of this community. I applaud the Mayor and city council for there work on the Lady Luck project. Downtown has a soul unlike the suburbs. My only concern is making sure that CIM is required to remove the bridge that blocks the view of the historic post office. In the 1930's the community petitioned the city council to center the post office on 3rd Street. We must petition the city council again to remove the bridge that destroys the view of this classic building. tim wrote on July 06, 2008 09:58 AM: more land deals to rich corparate owners.screw the taxpayers,those guys were holding out for a better deal,plain and simple.they already bought land they just wanted more.ten bucks says they sell again to another co., make a profit,then split. Virga wrote on July 06, 2008 09:12 AM: Protectionism created the Strip. It has created the vast empire of Clark County that now surrounds the Good Ole Boys gang and their old Red Line bull---t. Downtown is a dump wrote on July 06, 2008 07:40 AM: Remaking downtown is a fools errand. Most of those properties need to be imploded not renovated. The whole of downtown is a "rotting corpse." The bums, poor hygiene, and poor taste among property owners are eating the "corpse" of its flesh. If the mayor were smart he would see that this is his only hope for renewal and that he should aid the process of decay to accelerate it.