Las Vegas' 61-acre Union Park parcel sits empty but for a lone tree. Mayor Oscar Goodman wants high-density, high-rise residential buildings to be constructed on the site as soon as possible. The city was in talks with The Related Cos. developers for more than a year. Photo by Jeff Scheid. Click image for enlargement.

Negotiations between Las Vegas officials and the would-be master developer of the city's 61-acre Union Park parcel ended unsuccessfully Thursday, leaving the future of the site in question.

Mayor Oscar Goodman's insistence that high-density, high-rise residential dwellings be built as soon as possible on the site west of downtown's casino corridor proved to be a deal-breaker for The Related Cos., the New York-based development firm that has been in talks with the city for more than a year.

"I wanted the guarantee that the residential component would be built in a certain time frame," Goodman said Thursday. "And very simply, Related, the responsible company that they are, felt they couldn't make me that commitment."

Goodman met with Related Las Vegas President Martin Burger for 90 minutes Thursday before announcing that the city and company were unable to reach a deal.

Goodman "was just more demanding than we were able to deliver," Burger said. "I'm not sure anyone's able to deliver what he's asking for. He's got some lofty goals.

"He wants density on the site, and he wants it to happen sooner rather than later."

Burger attributed the breakdown of the deal to the rising costs of construction.

In a city press release earlier Thursday, Burger said his company intends to remain active in downtown redevelopment.

"Related Las Vegas is still very bullish on the downtown and Las Vegas market," Burger said. "As the primary partner in World Market Center, we will continue to build a diverse new economic base for downtown."

Related also has a stake in several big-ticket development projects in Las Vegas. Most recently, it joined the group behind the Las Ramblas project, a $3 billion hotel and condominium project on Harmon Avenue whose backers include actor George Clooney. Related is also behind the Icon high-rise condominium project on Convention Center Drive.

Related's involvement in those high-end developments might have contributed to its reluctance to commit to a deadline on Union Park, said John Restrepo, principal of the real estate research firm Restrepo Consulting Group LLC.

High-rise development proposals in Las Vegas mushroomed after the city and Related began negotiations on Union Park more than a year ago.

"Related may have too much on their plate," Restrepo said. "Their focus right now is on the Strip area. I think the mayor is right in holding out for high-density residential, but the question is, how many of those projects are actually going to get built?"

Goodman said independently developed projects within Union Park, such as a performing arts center and an Alzheimer's research center, aren't affected by the failure to reach an agreement with Related.

Planning for a new City Hall on the site also will continue, he said.

That was also the impression received by Myron Martin, president of the Las Vegas Performing Arts Center Foundation. He said he was not surprised to hear that Related was stepping away from the Union Park parcel, partly because the negotiations had gone on so long without a resolution.

"Our relationship and our agreement has always been with the city," Martin said. "I don't think this will affect our project at all."

The performing arts center is tentatively slated to be built in the heart of Union Park. Martin said that within the next month, the foundation will begin evaluating construction management firms and architects. It plans to break ground for the project within the next 18 to 24 months.

"The only real difference now is what happens around us and what the uses will be," Martin said. "I'm confident all this will work out well."

Goodman said that he is relieved that talks with Related have reached a conclusion and that the city is free to explore other options.

He anticipates no shortage of queries from other developers who want to execute the Union Park project, which has been the focus of his downtown revitalization efforts since taking office.

"My phone will start ringing tomorrow," the mayor said.

Goodman also pointed out that the impasse frees the city to seek a higher price for the land. In negotiations with Related, the Union Park property was valued at $1 million an acre. Soaring real estate values mean that it's likely the city would reap substantially more in a future deal.

"I think it could be $3 million to $5 million an acre," Restrepo said.

Goodman said skyrocketing construction costs and increased competition for skilled labor played a part in the city's impasse with Related. In addition, the company lost a commitment from a prospective tenant for a proposed office building complex.

The impasse does not rule out a development agreement with Related for a smaller portion of the 61 acres, the mayor said.

Goodman stood firm on the construction of high-rise development on the parcel.

"This is going to be a skyscraper, high-density location in the heart and soul of Las Vegas," he said. "That's been the vision, and we aren't going to back off that vision."