The company involved in the redevelopment of the Lady Luck casino in Downtown Las Vegas is asking for a rebate on sales tax revenue it generates with a completed project.

CIM Group is looking at a mixed-use project at the site that will include 100,000 to 200,000 square feet of retail shops. The city of Las Vegas has agreed to sell land surrounding the property to CIM for $92 million, provided the developer invests at least $100 million into the renovation of the casino.

Lady Luck has been closed since February 2006. At the time, the Henry Brent Co. said the remodeling would take 12 months. Since then, the property has changed hands and is now controlled by CIM Group.

The company is applying to have the development classified as a tourism improvement district, allowing it to issue sales tax anticipation revenue bonds to fund construction. CIM estimates it would generate $50 million in new taxes over the next 23 years, but the amount of money it would be rebated has not been determined.

The Nevada legislature set a deadline of October 1 for the completion of projects designated as tourism improvement districts, but the city has put in a request to extend the deadline.

A number of bodies, including the city council, Clark County Commission and School District and the Nevada Commission on Tourism must sign off on the improvement district tax break.

Steve Van Gorp, deputy director for the Las Vegas office of business development, told the Las Vegas Review-Journal that he believes tax rebates are necessary for the project.

“It’s a new project that is creating tax dollars. It’s not a project with existing tax dollars,” Van Gorp said. “If the project doesn’t get built, there are no tax dollars.”

By Casino Connection Staff