Proposal would expand Las Vegas’ redevelopment zone

More than 500 acres of property near downtown Las Vegas could be eligible for more publicly funded improvement grants and infrastructure upgrades under a proposal by the city.

The change would occur if the land is included in a proposed expansion of the city’s redevelopment zone, a distinction that allows the city to divert a portion of property taxes paid in the target area back into the area for improvement.

The new areas would be in addition to approximately 3,900 acres already in the downtown redevelopment zone, which retains millions of dollars annually that’s used for debt service on projects, grants for small businesses and other improvements.

Bill Arent, the city’s director of economic and urban development, told the City Council on Wednesday that if the proposal is adopted it would allow the blighted areas near downtown to benefit more from new development that’s happening in the urban core, such as museums, restaurants, bars and offices for an emerging technology and startup sector.

“The success of downtown can actually benefit the neighborhoods,” Arent said. “If we didn’t have that money coming in from downtown and money coming into the agency, we wouldn’t be able to do that.”

But not everyone was eager to have their property included in a redevelopment zone.

Several people attended the meeting to say they worried it could increase their taxes or result in the city using eminent domain to take property for major developments.

“I have yet to see the specifics of what would be the benefit,” resident Hermanell Moody said.

Resident Debra Glass said, “My understanding is as the areas are improved the taxes will be increased.”

Arent said adding a property to a redevelopment area doesn’t change the taxes property owners pay. But it does make those properties eligible for programs funded by a slice of the property tax that’s set aside to be redirected into the area.

The city created its first, and largest, redevelopment area in 1986 to help revive the downtown area. It’s generated money for projects such as The Smith Center for the Performing Arts, the Mob Museum, numerous small businesses that have received grants and street improvements.

During the economic boom times of the early 2000s, the redevelopment agency generated more than $20 million in revenue for diversion back into downtown improvements. But revenue has dropped significantly along with property values in recent years.

The city created a second redevelopment area along West Sahara Avenue and West Charleston Boulevard last year.

Wednesday’s discussion was an early step in the process to add property on East Charleston, East Sahara Avenue and in the economically depressed West Las Vegas neighborhood. The proposal still needs to go before the Planning Commission and two more City Council meetings before it can be completed, which could happen in September.

If the city does approve the expansion of the redevelopment area, property owners can opt to be excluded from the zone.

Contact reporter Benjamin Spillman at
bspillman@reviewjournal.com or 702-383-0285.