World Market Center Sm Las Vegas Wins Final Tax Rebate Approval

Furniture World Magazine

The Las Vegas City Council unanimously approved plans for World Market Center SM, a $1 billion wholesale home furnishings showroom and convention center complex on a 57-acre site near downtown Las Vegas. Citing a variety of economic and tax benefits to the City – including the creation of thousands of new jobs, new tax revenues as well as new infrastructure improvements – City officials paved the way for the multiphase project, beginning later this year with the construction of Phase One, a 1.25 million-square-foot building. Project developers hailed today’s decision as a “win-win” arrangement. The agreement gives developers property tax rebates estimated by the developers to be potentially worth $50 million over 20 years. Moreover, the approval of the package is reflective of the cooperative relationship between the City and the developers. “We are elated, and wish to recognize the commitment and vision of City officials and staff in making this public-private partnership a reality. World Market Center SM, the City and the home furnishings industry are all winners today,” said Jack Kashani, a co-managing partner of World Market Center SM. Commenting on the City Council’s approval of World Market Center SM Las Vegas Mayor Oscar Goodman said, “Today is a big day for the City of Las Vegas. It is a historical occasion.” “We expect World Market Center SM to be a resounding success, and will give you all of the support you need,” Mayor Goodman told the developers. “And, we are impressed with the list of companies who are coming into our community because of this project. This is an awesome list of tenants.” Mayor Goodman credited the developers, as well as the Las Vegas Chamber of Commerce and the Nevada Development Authority, for “raising the bar of innovation in order to attract this type of business to the downtown area.” He also applauded other community businesses and activists who took part in the process and helped to further define this important project for Las Vegas. Developers called the vote “a significant policy and economic milestone,” which comes eight months after the council approved an initial memorandum of understanding. The agreement permits the City to attract major infrastructure improvements and revitalization for downtown without advancing any existing municipal funds. Approval of the project incorporates a progressive tax incentive provision, permitting developers to accelerate development of the proposed 7.5-million-square-foot mixed-use campus that will include wholesale showrooms of home and hospitality furnishings, a world-class Design Center, and related convention facilities. Under this innovative public-private structure, no upfront funds are required to be invested by the City. The approved package calls for the City to support the project with tax increment financing to offset certain infrastructure costs. In turn, the developer will invest all of the project development capital, including the funds required for land acquisition, construction costs and infrastructure improvements. “Today’s vote of confidence solidifies the position of World Market Center SM as the pre-eminent showroom and market facility in the West. This complex will greatly benefit the home furnishings industry and City of Las Vegas alike. The approval of the tax financing package will accelerate plans for the development of the future phases of the project,” said Shawn Samson, co-managing partner for World Market Center SM. The Las Vegas Market has already attracted more than 200 manufacturers and importers as tenants, accounting for more than 1 million square feet in lease agreements. The developer’s rapid leasing achievement, in conjunction with its final agreement with the City, underscores the extraordinary degree to which both Las Vegas and home furnishings officials have demonstrated support for this unique super-regional market. Upon completion, World Market Center SM will be the largest home furnishings showroom complex in the West. Phase One will total 1.25 million square feet and will be a trade facility dedicated to all aspects of home furnishings, including furniture, bedding, decorative accessories, lighting and a first-class Design Center. The 10-story building will house six floors of furniture and bedding showrooms and two floors of decorative accessories and lighting. The first two floors of the building comprise the Design Center with a diverse selection of showrooms open year round. For more information, visit www.LasVegasMarket.com.