Union Village takes first steps to starting project in Henderson

Union Village developers took the first official step toward constructing the multimillion-dollar health, residential and retail district April 19 when they received the city of Henderson’s intent to sell 150.72 acres for the development.

With a unanimous vote , the Henderson City Council , with Councilman Steven Kirk absent, voted to begin the sale of the development site near U.S. Highway 95 and Galleria Drive.

“This project is going to really benefit our community,” Councilwoman Gerri Schroder said.

David Norris, the real estate portfolio manager in the city’s economic and redevelopment division , outlined the details of the project, including costs, at the April 19 City Council meeting .

Norris gave the council appraisal prices for the purchase.

The initial appraisal was for $29.5 million, if the site had been in perfect condition .

But the site isn’t in perfect condition, and once the land is purchased, the area must be filled with 2.1 million cubic yards of dirt to level the property . That will cost about $17.5 million.

“It is equivalent to a million washing machines,” Norris said.

The city already had allocated about $4.5 million last November to begin putting fill dirt in.

Norris said that with all considerations, the actual sale price would be about $11.6 million.

Union Village developers also have set aside 5 acres to develop the Henderson Space and Science Center, which will be a separately funded project.

During the presentation, Henderson Mayor Andy Hafen asked about safeguards for the development.

One safeguard was to make sure the land remains a health village, like the developers proposed, and not flipped to become something else, such as a residential development. Any changes must be approved by the city.

Hafen also talked about safeguards for timelines.

“What if it has been five years and we haven’t seen anything?” Hafen asked. “Or if it is six months before the five year (estimated completion), and we start to see construction?”

Norris said the developers are tied to the project.

David Baker, a Southern California developer and managing partner of Union Village, announced the health village concept April 7. The master plan includes a new health facility, a senior retirement community, retail stores and restaurants, a gym, a movie theater and other amenities.

Union Village is estimated to cost $1.5 billion but is expected to generate at least an estimated $241 million in tax increment financing over 25 years.

John Stewart, a principal of the development company Juliet Companies, hopes the project is prepped for construction between December and April 2012.

Baker said it should be about 41 months from construction to finish.

The council is slated to take final action on the purchase at its June 14 meeting.

Contact Henderson and Anthem View reporter Michael Lyle at mlyle@viewnews.com or 387-5201.