Water authority big winner in building pact

Three years ago, the Southern Nevada Water Authority entered into an agreement to move its headquarters into a new high-rise office building downtown.

Now it looks as if one of the valley’s more prominent commercial developers could end up taking a bath on its lease-purchase deal with the water agency.

The building in question is the Molasky Corporate Center, a 14-story office complex at the corner of F Street and Ogden Avenue, just south of U.S. Highway 95.

Water authority board members on Thursday approved a plan to purchase five of the seven floors the agency currently leases in the building.

Buying the space rather than renting it will save the authority about $1.9 million a year over the next 20 years, said Deputy General Manager Richard Wimmer.

“Financially this is just an excellent move for us at this time,” he said.

The authority’s purchase price for the floors is $34.6 million. The Molasky Group’s construction costs were about $48 million, Wimmer said.

Actually, it’s more like $50 million, according to Richard Worthington, president and chief operating officer for the Molasky Group of companies.

“It doesn’t feel good but we’re sticking by our commitment,” Worthington said. “It’s a win for the water authority and it’s a bruising loss for us, but a deal is a deal.”

The first water authority employees began moving into the Molasky Corporate Center in August. Members of the Las Vegas Valley Water District’s design team have also set up shop at the 285,000-square-foot high-rise.

About 420 employees in all now work at the building, which has allowed the water authority to move out of the space it once leased at the Greystone Office Complex on Flamingo Road and Spencer Street.

Wimmer said the authority was running out of room at Greystone, where the lease was amended 11 times in 13 years to accommodate a growing staff of engineers and water experts.

Under its agreement with the Molasky Group, the authority has the option to gradually buy the rest of the building over the next 15 years.

Wimmer said the lease-purchase agreement was perfect because it gave the authority the flexibility to add more space as necessary or walk away from the building altogether if it didn’t meet the agency’s needs.

For public entities, he said, “it’s hard to build something that you can grow into. And to build something you don’t need, well that’s just unacceptable.”

Worthington blamed the sharp rise in construction costs nationwide for the beating the Molasky Group will take on its agreement with the water authority.

The high-rise was originally slated to cost $75 million. The final price tag now is expected exceed $100 million.

The authority’s $34.6 million purchase price for the first five floors was embedded in the original agreement it signed with the Molasky Group in 2004.

Worthington said the Molasky Corporate Center is one of only about 200 in the world to earn gold certification from the Leadership in Energy and Environmental Design, or LEED, program.

To qualify for gold certification, a project must meet LEED’s rigorous standards for environmentally sustainable building practices.

In the case of the Molasky Corporate Center, 97 percent of the steel used in the structure is recycled and its landscaping is watered using the treated waste water generated on site. The insulation in the walls is made from old blue jeans and the counter tops are made out of broken glass.

Worthington said the facility uses up to 35 percent less water and 37 percent less electricity than a non-LEED certified structure of similar size.

“We’re very proud of this building,” he said.

Water authority board member Rory Reid abstained from Thursday’s vote because his law firm has done some work for the Molasky Group in the past.

Tate Elementary shows academic progress after categorical funding
Students at Tate Elementary in Las Vegas has benefited from a program to boost education funding in targeted student populations, known as categorical funding. One program called Zoom helps students who have fallen below grade level in reading. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Three Square helps TSA workers
Three Square Food Bank donated over 400 care bags to TSA workers affected by the government shutdown Wednesday, filled with food, personal hygiene products and water.
Las Vegas furniture store donates to Clark County firehouses
Walker Furniture donated new mattresses to all 30 Clark County firehouses in the Las Vegas Valley, starting today with Station 22. (Mat Luschek/Las Vegas Review-Journal)
Mount Charleston Gets Heavy Snow, Fog
Mount Charleston saw heavy snow today, and fog in lower elevations as a cold front swept across the Las Vegas Valley. (Benjamin Hager/Las Vegas Review-Journal)
Krystal Whipple arrested in Arizona
Krystal Whipple, charged in the killing of a Las Vegas nail salon manager over a $35 manicure, is expected to return to Nevada to face a murder charge.
Holocaust survivor on acceptance
Holocaust survivor Celina Karp Biniaz, who was the youngest person on Schindler’s List, talks about the most important message for people to understand from her life and experiences.
Holocaust survivor speaks about telling her story
Holocaust survivor Celina Karp Biniaz, who was the youngest person on Schindler’s List, tells of opening up about her experiences during Sunday’s event at Temple Sinai.
Jesus Jara State of the Schools address
Clark County School District Superintendent Jesus Jara delivers his State of the Schools address on Friday, Jan. 11, 2019. (Amelia Pak-Harvey/Las Vegas Review-Journal)
Michael Naft sworn in to Clark County Commission
Michael Naft, chosen by Gov. Steve Sisolak to be his replacement on the Clark County Commission, was sworn into office on Wednesday, Jan. 9, 2019. (Shea Johnson/Las Vegas Review-Journal)
CES Opening Party in Omnia Nightclub at Caesars Palace
CES conventioneers packed Omnia Nightclub at Caesars Palace, and let loose as they danced to DJs into the night. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Las Vegas police piecing together details of fatal shooting
Six hours after the fact, Las Vegas homicide detectives worked to reconstruct the scene of a shooting early Jan. 7 that left one man dead in the southeast valley. (Rio Lacanlale/Las Vegas Review-Journal)
Dyer Lawrence explains college football playoff system proposal
Las Vegan Dyer Lawrence has a new idea for a college football playoff system that includes a unique scheduling component called National Call Out Day. (Ron Kantowski/Las Vegas Review-Journal)
Death row inmate Scott Dozier found dead in his cell
Nevada death row inmate Scott Dozier is dead. Dozier’s death ends his legal odyssey, which began in 2007 when he was convicted in the 2002 murder of Jeremiah Miller, but does little to clarify what’s next for Nevada’s death penalty.
I-15 southbound near Primm closed after ‘major crash’
A rollover crash Saturday morning involving at least nine vehicles on southbound Interstate 15 near Primm caused an hourslong traffic delay. Traffic was backed up to Sloan, live traffic cameras show. (Rio Lacanlale/Las Vegas Review-Journal)
Death Valley visitors deal with shutdown
Visitors staying at the Furnace Creek Campground were forced to move from the campground following health and safety concerns due to lack of resources during the partial government shutdown at Death Valley National Park in Calif., on Friday, Jan. 4, 2019. Richard Brian Las Vegas Review-Journal @vegasphotograph
Half of homicides in Henderson for 2018 domestic violence related
Lt. Kirk Moore of the public information office of the city of Henderson police department speaks to the Review-Journal in Henderson, Thursday, Jan. 3, 2019. Henderson saw a slight increase in homicides in the past year. (Rachel Aston/Las Vegas Review-Journal)
Governor-elect Steve Sisolak stops by Las Vegas Boys and Girls Club
Governor-elect Steve Sisolak kicks off his tour to Carson City, which will take him from Las Vegas, through Tonopah, and up to the capital city. First stop is the Downtown Boys & Girls Club.
Certificates for renewing wedding vows in Clark County
The Marriage License Bureau in Clark County began issuing a Certificate of Vow Renewal to married couples who are renewing their wedding vows on Jan. 3, 2019. (Shea Johnson/Las Vegas Review-Journal)
Las Vegas flu season better than last year (so far)
Dr. Fermin Leguen, chief medical officer and director of clinical services at the Southern Nevada Health District, said there were 24 flu-related deaths at this point in the flu season. No deaths have been reported so far this year. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
The Las Vegas Valley’s First Baby of 2019
The first 2019 baby in the Las Vegas Valley was Melialani Chihiro Manning, born at 12:10 a.m. at Henderson Hospital. (Briana Erickson/Las Vegas Review-Journal)
Las Vegas NYE Fireworks - VIDEO
The full show: A spectacular view from the rooftop of the Trump International Hotel as 80,000 pyrotechnics illuminated the Las Vegas Strip at the stroke of midnight. Fireworks by Grucci choreographed launches from the Stratosphere, the Venetian, Treasure Island, Caesars Palace, Planet Hollywood, Aria and MGM Grand.
Snow in Henderson on New Year's Eve morning
Light snow flurries in Anthem Highlands in Henderson on Monday morning, the last day of 2018.
Sources: Henderson Constable may face more charges
Henderson Constable Earl Mitchell may face additional charges ... stemming from his spending of county funds, sources said. Mitchell was indicted earlier this month on five felony theft and fraud charges ... after a Las Vegas Review-Journal story questioned his spending. But grand jury records show even more extensive spending including ... an $800 dinner at steakhouse ... nearly 200 atm withdrawals mostly at gambling establishments ... and even Disneyland tickets. But his attorney plans to ask a judge to dismiss the charges.
Las Vegas NYE Restrictions and Enhanced Security
If you are planning to celebrate New Year's Eve on the Las Vegas Strip or Fremont Street, be aware that you are not allowed to bring backpacks, coolers, strollers or glass. There will also be an increase in security to ensure safe celebrations across town.
Catholic Charities serves up 53rd annual Christmas dinner
Catholic Charities of Southern Nevada and more than 100 volunteers served 1,000 Christmas meals to Southern Nevada's homeless and less fortunate. (K.M. Cannon Las Vegas Review-Journal @kmcannonphoto)
Henderson couple adds another school to their generosity
Bob and Sandy Ellis of Henderson, who donate to several Clark County School District schools, have added Matt Kelly Elementary in Las Vegas to their list of schools where every student gets new shoes, socks and a toy. (K.M. Cannon/Las Vegas Review-Journal)
Jeffrey Martin Added To Nevada's Black Book
Martin was one of four men convicted of theft and cheating at gambling in 2016 in Clark County District Court and sentenced to prison. The Nevada Gaming Commission voted unanimously Thursday to include Martin in the black book.
Raiders Stadium Timelapse
Construction on the new Raiders stadium continues in Las Vegas.
Buffalo Wild Wings security video
Security footage from a Buffalo Wild Wings restaurant in southwest Las Vegas captured a driver who repeatedly crashed into a vehicle in a failed attempt to squeeze into a tight parking spot.
The Magical Forest at Opportunity Village
Opportunity Village's Magical Forest added 1 million lights and a synchronized music show visible from all over the forest this year. The holiday attraction, which began in 1991, has a train, rides, food and entertainment along with the light displays. (Heidi Knapp Rinella/Las Vegas Review-Journal)
News Headlines
Home Front Page Footer Listing
You May Like

You May Like