Project to aid low-income seniors, boost area

Map illustration by f. andrew taylor/ViewThe two areas marked in red denote where The Residences at Village Square project is planned. Advertisement

By BROCK RADKE

VIEW STAFF WRITER

The Residences at Village Square, an approximately $80 million senior housing development and commercial center planned near Decatur Boulevard and Vegas Drive, is expected to provide a big-time boost for what has been considered a blighted neighborhood in the West Las Vegas area.

The Las Vegas City Council approved proposals from Alpha Omega Strategies on July 16, paving the way for the developer to move forward on approximately 65,000 square feet of commercial development and 416 residential units on the roughly 11-acre site, which the company is buying from the city for $6.5 million. The project also includes plans for a new fire station, which will be paid for by about half the land purchase price.

The Residences at Village Square will serve low-income seniors who earn at or below 60 percent of area median income, with rental rates ensuring households are not paying more than 30 percent of their annual income toward housing, according to city officials.

U.S. Department of Housing and Urban Development statistics show median annual income in Las Vegas for a family of one is $26,820; for two, it's $30,660; for three, it's $34,500; and for a family of four, it's $38,340.

"With the high increase of seniors moving into the valley, and with Las Vegas becoming the No. 2 senior community outside of Florida, there is a high need for housing of this type," said Ward 5 City Councilman Ricki Barlow.

At the meeting, the City Council agreed the project could be essential in rebuilding the neighborhood.

The site, across the street from Ed Fountain Park, which is located at 4599 Vegas Drive, has been vacant since 2000 and once housed the former Wonder World store.

Michael McDonald, president and chief executive officer of Alpha Omega Strategies and a former city councilman who grew up in the neighborhood, said the project can be a tremendous step in redeveloping an older, somewhat troubled part of Las Vegas, an area he said has seen great improvement thanks to the efforts of Barlow and other city officials.

"This is what we need in Las Vegas. This is one of the largest senior developments being built west of the Mississippi, and it's especially unique because we're going vertical. It's the right time and the right place," McDonald said. "It's been a tough process to get to this point, but we've had the benefit of great state and city officials guiding us the whole way. And it's sweet for me because I was born and raised in this neighborhood, I still talk to my neighbors every day, and I've seen the rise and fall of the neighborhood over the years."

McDonald's company is teaming with Bruce and William Bayne on the project. Bruce Bayne is a vice president with Peccole Nevada, a development firm that has been involved with high-profile projects, including The Village at Queensridge, under construction in Summerlin.

"They have the pieces I don't have. I have redevelopment and working for the city of Las Vegas in my background, and this is really hands-on," McDonald said.

The city also approved public funding for the project, a 40 percent subsidy for new construction of affordable multi-housing developments. Additional funds are being provided through the State Housing Division, roughly 49 percent of the cost, and the developer is pledging 85 percent of its developer's fee, roughly covering 11 percent of the estimated cost.

The residential building is planned for 10 stories. The site also includes space for a market, fast-food restaurants and sites for shops to be determined at a later date. McDonald said he would like to see medical facilities, offices and private practices dominate the commercial landscape.

The fire station is planned for the first floor of the residential building. Access to the project will come from Decatur Boulevard, with additional parking off Laurelhurst Drive.

McDonald said he is hoping to break ground for the commercial part of the project later this year and hopefully start work on the residential building in the first quarter of 2009.

Barlow said he had similar experiences to McDonald's during the former councilman's term, saying it was hard to find anyone interested in developing the site.

"For the most part, developers had been looking at the outlying boundaries of the city and the downtown area, and this site had not reached anyone's radar for this type of project," Barlow said. "I was elated at the opportunity to meet with the Alpha Omega team and their developer, Bruce Bayne, and I said I would love to do it at this location because it's at the heart of my district and there are a lot of seniors in this area in need of housing. They're living with family members in an already populated home, and we want to be able to give them a higher level of independence and privacy."

Barlow said although the project is planned to offer more than 400 residential units, it's still not enough to meet the needs of the neighborhood.

"This will be the turning point for development and redevelopment in this neighborhood," he said. "I believe it will spur more developers to come into this area, once the commercial and housing units come on line. You'll have an influx, overnight, of people needing a variety of services."

Area resident Frank Reed said he eats breakfast at the nearby Sunshine Cafe once a week, and that he will be surprised if the project becomes a reality.

"That's a lot of money for an old neighborhood," he said. "It would be great. It could bring a pretty large-scale change. We could use the help around here."

McDonald served as councilman from 1995 to 2003. Because of his relationship with the council -- and alleged ethics violations that contributed to his failed re-election bid in 2003 -- the project fell under intense scrutiny, but ultimately the city's need for affordable housing options for seniors trumped any potential controversy.

"No apologies here. This is a great project," Las Vegas Mayor Oscar Goodman said. "It's long overdue."

More than 41,000 low-income senior residents in Las Vegas were either spending more than half their income on housing or living in substandard housing in 2000, according to the U.S. Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy analysis.