LAS VEGAS—July 2, 2008—The Las Vegas City Council today approved an agreement with CIM Group to develop the land adjacent to the museum planned for the historic Post Office Building on Stewart Avenue in the downtown district. Under the agreement, the City of Las Vegas remains responsible for the museum, with CIM Group providing the vertical, retail-oriented, mixed-use development on the surrounding land commonly referred to as the Post Office Block. This public/private partnership will create a vibrant addition to the downtown core anchored by the museum with a mix of retail, restaurants, entertainment and other commercial uses that will enhance the area's appeal as a tourist destination.
"CIM Group has a successful track record in developing projects that serve as catalysts for revitalizing urban districts," said Mayor Oscar B. Goodman. "The site that will house the Mob Museum is going to be a great attraction for Las Vegas and the new retail, restaurants and entertainment will complement not only the new museum but the larger revitalization that is taking place in our downtown core."
The project will generate about $50 million in new taxes over the next 23 years and about 2,500 jobs in downtown Las Vegas.
CIM Group entered the Las Vegas market in October 2007 with the acquisition of the Lady Luck Hotel and Casino, located across the street from the Post Office Block. The company is in the process of finalizing its redevelopment plans for the hotel, which is not part of this public/private development agreement with the city of Las Vegas. The popular Hogs & Heifers and Triple George Grill adjacent to the Lady Luck will remain open during renovations. The goal is to open the Lady Luck and the museum concurrently in 2010.
Even though no city funds are invested in the Lady Luck, as part of its commitment to downtown's revitalization, CIM Group has agreed that the city will receive all property tax increases generated by the Lady Luck development, funds that in typical redevelopment agreements are retained by the developer. In addition, CIM Group will contribute up to $3 million in proceeds from a signage program on the Lady Luck site to the city with the intention that it be used for the direct benefit of the museum. The signage program will be presented to the city for approval in the near future.
The agreement outlines the vision for the future development and provides a foundation for the city to work with CIM Group to advance this critical project.
The partnership will work to gain approvals from government agencies with oversight of the land including the National Park Service. Following approval of the master plan a parking study will be initiated to determine appropriate size of the parking garage that will be developed to serve the museum and the mixed-use project.
"Our goal is to enhance downtown as an inviting, pedestrian district that will engage both visitors and residents," said Jeff Rosen, principal, CIM Group. "Based on our analysis of the area, including economic and demographic factors as well as existing properties, we believe that downtown Las Vegas will grow as a destination and thus a larger asset to the city."
This agreement is conditioned upon CIM Group meeting certain performance milestones in the redevelopment of the Lady Luck. If these terms are not met, the agreement is void and the land reverts back to the city.
About CIM Group
Founded in 1994, CIM Group is a leading real estate investment firm that has successfully invested in dynamic, transitional, and densely populated urban communities throughout North America. The CIM Group relies upon its experienced team of real estate, investment and finance professionals to identify and pursue investment opportunities through three distinct and complementary pools of capital: opportunistic, stabilized and infrastructure. Headquartered in Los Angeles, CIM maintains regional offices in San Francisco and Bethesda, Maryland. For more information, please visit www.cimgroup.com.