New city hall on the agenda

Las Vegas leaders next week will revisit the idea of building a new city hall -- in fact, they could even approve spending money to start designing the $150 million project.

City Council members have given early indications that they like the project, but said they're also cautious because the city's budget is stretched tight and is likely to remain so for at least the next two years.

An indication of their support for the project could come as early as Wednesday, when the council considers a $2.7 million architecture contract for initial design work.

"Nobody realizes what kind of strain we're in better than I do," said Mayor Pro Tem Gary Reese.

Still, he added, "it may be a good opportunity to build one ... I want to keep the door open, so that I can definitely look at it."

In February, the council accepted a report identifying a 2.8-acre plot on First Street between Lewis and Clark avenues as the best site for a new city hall. The property is now home to the closed Queen of Hearts casino and a couple of apartment complexes.

As proposed, the new city hall would be part of an ambitious set of deals involving five blocks of office and retail space around the Queen of Hearts site, a new casino in nearby Union Park and new development on the existing city hall site.

But for now, the City Council has a couple of straightforward questions to answer, Councilman Larry Brown said.

"Is it the right opportunity, and is it the right time?" he said. "We would be remiss if we did not look at this. I personally think it's the right thing to do."

On Wednesday, council members will hear details about a proposed deal with Live-Work Las Vegas LLC, which owns the Queen of Hearts site and four adjacent blocks.

Live-Work Las Vegas would build the new city hall and surrounding buildings and the city would essentially be an anchor tenant in that development.

In exchange for the Queen of Hearts land, Live-Work would receive a parcel in the 61-acre Union Park, which the city owns. Plans call for the company to build a 1,000-room hotel-casino there.

Brown said he was surprised to see that item on the agenda because the city is leaving positions vacant, trimming part-time employees and closing more recreation centers on Sundays to save money.

"That's a question mark," he said.

He and Reese said they hadn't been briefed yet on that contract and declined to comment. Other council members and Mayor Oscar Goodman did not respond to requests for comment Friday.

City spokeswoman Diana Paul said the contract is on the agenda in case the council decides to proceed with the project.

"If the council decides to move forward on Wednesday, the contract will allow the city to move forward with the design so that construction is not delayed for another month," she said.

The report on the city hall site estimated that construction costs could escalate as much as $1 million a month.

As for building the proposed 251,000-square-foot building, Reese and Brown stressed that the initial cost would be borne by Live-Work Las Vegas. The city would pay it back either by leasing the space or buying it once the new city hall is complete.

"It's a new financing option that literally defers not only the initial cost of construction, but also defers the initial risk of construction," Brown said. "I don't think we're in a financial position to take that risk."

Reese said the project is "part of a jigsaw" and "part of the key to downtown."

"If someone's going to build it for you, you have to look at it," he said.

"We wouldn't have to pay anything for a couple of years, and hopefully by then the economy will come back. But we can't wait until then to decide if we're going to build it."

Contact reporter Alan Choate at achoate@reviewjournal.com or (702) 229-6435.