Henderson approves contract to clean up former City Tower site

A Henderson company has been awarded a contract to clean up about 2.3 acres of blighted land at the southeast corner of Lake Mead Parkway and Water Street, once planned as the site for the City Tower project.

The Henderson City Council, sitting as the Redevelopment Agency Board, ratified the contract Tuesday. The contract has been awarded to ACE Demolition in an amount not to exceed $74,000.

In August, the board terminated its agreement with the City Tower developer, signaling the demise of the $90 million, mixed-use development once planned for the site, billed as "the gateway to the new downtown."

At the time, City Manager Jacob Snow described the site as an eyesore and said it had become a nuisance. The land has remained vacant for more than five years.

City staff proceeded with the cleanup contract because the matter, which drew complaints from nearby residents and business owners, was deemed urgent.

The project, developed by brothers Arik and Ilan Raiter, was to include two towers with 40,000 square feet of retail space, 168,000 square feet of office space, 137 condominiums and nine penthouse units. A 10,000-square-foot restaurant was to be on the office building's top floor.

With the termination of the development agreement, the Redevelopment Agency took back three parcels, which amount to less than half an acre, it sold to City Tower LLC. The city kept the $100,000 deposit, and the developer kept the other 10 parcels it owns at the site.

City spokesman Bud Cranor said the deposit will be used to cover the cost of the cleanup.

Contact reporter Carri Geer Thevenot at cgeer@reviewjournal.com or 702-384-8710.