In five years time, the manager of Henderson's Redevelopment Agency expects the city's original downtown - now known as the Water Street District - to have evolved from the dusty, war-effort manufacturing town into an art deco hub of family friendly activity. And just five years ago, perhaps the only reason to drive up the district's main thoroughfare, Water Street, was to visit City Hall, police headquarters, the courthouse or the jail. Now it boasts new buildings, over a dozen restaurants and coffeehouses, a few art studios, a weekly farmers' market and several varied shops.

Romero talked with In Business Las Vegas about the economy's effect on redevelopment, the agency's outreach to businesses and the status of redevelopment projects in Henderson.

Michelle Romero LEILA NAVIDI / STAFF PHOTOGRAPHER

Answer: The redevelopment agency started in 1995 when the City Council took a look around the city and realized there were some aging areas that were in need of help. We had seen a lot of - especially in the downtown areas, as in many downtowns throughout the country - kind of an exodus of businesses and people to other parts of the city. As a result, infrastructure was declining; there were vacant buildings; there were buildings that were going into disrepair. So they looked at it and said, "We need to do something about this before it's gone too far." And they established the redevelopment agency and formed the first area, which was the downtown redevelopment area, and began putting together the pieces that needed to be in place so that we could start reversing those trends.

That's essentially what redevelopment does. It reverses the trends of blight. It can be social blight, economic blight, high vacancy rates, high crime rates. We try to institute programs and assistance that reverses those trends.

A little bit of everything (laughs). A lot of administration. Including myself, we have eight employees and we oversee a really wide variety of activities. Everything from new construction and that type of thing, to going out and interviewing residents and surveying them for what types of things they'd like to see in their neighborhoods.

One of our programs, for example, the homeowners' assistance program, evolved because of meetings we held with residents that were attended by the City Council. And the message that they heard loud and clear was they needed assistance with being able to improve some of their homes. They didn't quite qualify for neighborhood services programs, which have income restrictions, but they didn't have enough money to do the things they needed to do to their homes to fix them up. So, we created a program that addressed those problems, so now they have a menu to choose from. There's no income restrictions. The only restriction is that you are the homeowner and that you live within a redevelopment area and that the homeowner be the one who does the application. We do things like that where we see that there's a need and we try to go out and fill that void.

We do the same thing with businesses. We have one-on-one meetings with business owners in our redevelopment areas to find out - they're out in the street, they see what's happening and what needs to be done - and we go down and talk with them and get that feedback so we can make adjustments. We've created things like rental assistance programs, business development programs for those existing businesses in our area. We bring in speakers or somebody who does training, or something like that, in a specific area, (i.e.) marketing, that's needed.

We're also looking at - especially now that the market has slowed down - we're looking at the communities themselves. How can we build amenities that will attract people, that will build the residential, that will then support the retail, so not only will it support the existing bit, it will help to attract the new.

We do partnerships with the economic development, with parks and recreation, with cultural arts and tourism. Together we come up with ideas that we think will be a benefit to those communities.

Most of our focus, right now, is in the downtown redevelopment area and the eastside redevelopment area. The two other areas are a little bit (of a) different situation. They used to be gravel pits, and so we helped with the infrastructure on that. The developers are taking care of everything else. There's really not a lot of hands-on, everyday activity there. But in eastside and downtown, we're pretty active.

Water Street in Henderson. SAM MORRIS / STAFF PHOTOGRAPHER

Downtown encompasses the area that holds the City Hall complex and our associated civic buildings and the events plaza and those types of things. It runs actually up Lake Mead (Parkway) all the way to Fiesta (hotel) and then down almost to Warm Springs (Road) and then a little bit along Boulder Highway - some of the businesses that are along Boulder Highway - and then the surrounding residential.

Eastside is on the other side of Boulder Highway and encompasses the Sunset industrial corridor, the Landwell properties that's now called Cadence, and the Valley View area.

Cornerstone is at (Interstate) 215 and Stephanie (Street), right across the street from RC Willey. That's where there used to be that big gravel pit. Tuscany is (near) Lake Mead, just before Calico Ridge. It's also a former gravel pit.

It comes from tax increment financing. What happens is, when a redevelopment area is formed, it's got a specific boundary. A baseline is established so that whatever property taxes were being collected continue to be collected and distributed exactly as they were before, from that baseline and below.

As we make improvements to the area, and property values naturally rise, the property taxes have ... increased as well. We capture that increase and reinvest it back into that area. It has to be within those boundaries, so it's actually a benefit to people living within there, because they see the reinvestment dollars go back into the community.

Just as any other department in the city or as any business does. We look at the needs and we prioritize. We do a strategic plan and identify those components that are a priority and we develop what funding is needed for those specific projects or activities. We create a budget just like we do at any other business and we appropriate funds that way.

If a specific project comes to us and is looking for assistance, then we augment. We go back and augment and we do it on an as-needed basis, so we don't just carry money unnecessarily in the budget. We try to be very fiscally conservative.

They have. We have had more not (default) than did, but we did have two that are actually in the process now and going through the legal process.

We just established a business retention and development plan. That's just been adopted. And we have a business recruitment plan that's going through the approval process right now. We've been helping businesses all along. Like I said, we bring in speakers, we have assistance programs, we have a variety of programs that help with both the exterior and the interior improvements, financial help. But we also want to look at it strategically and look at things like what types of training the business owners may need: Do we need to look at workforce development in the area, and what does that entail? We have programs that will assist new businesses that come in with those same costs. If they need to fix up the building (and) it's going to cost more than they expected. Or capital start-up costs. We have programs that assist with that. We are flexible in what we can do.

We always have an independent review of an applicant that is coming in and as long as their business plan makes sense and their financial proposal makes sense, usually we can find some kind of assistance that will be appropriate for them.

Shops are shown along Pacific Avenue in Henderson. SAM MORRIS / STAFF PHOTOGRAPHER

Largely through events; we do that quite a bit. We work very closely with our city's cultural arts and tourism department. In fact, we're right in the middle of our really heavy events season. They do a wonderful job of bringing people down here on a regular basis. They have weekly events: Right about now almost every month there's a very large event, like Fourth of July and Super Run Car Show and ArtFest. All of those events bring in tens of thousands of people, and in some cases, like Super Run, hundreds of thousands of people.

While (the events) are here, we give the businesses the opportunity to hand out coupons, to do fliers, whatever they need to do to get people to come back or to notice that they're there. We work with businesses to find them the most opportune thing for them to make themselves known.

It's worked very well. Something that we've just discovered recently: We went on Google Maps and we were scrolling over the downtown, and it says "Water Street District," and we thought, "Yes! It worked!" (Laughs.) We find that more and more people are automatically referring to the area as the Water Street District. They recognize the logo. It's just becoming common vernacular for the area. And to us, that's successful.

Just like it has anywhere else, it slowed things down. Mostly, not actually interest in coming here, but mostly finding the financing to be able to do that. Some of the projects have requested a delay, which we think is very smart. They're responding to the market appropriately. They're very much interested. They're still making progress, but their time schedule has been drawn out a little bit. But we also have projects like Lake Mead Crossing, which is a 74-acre retail complex, that's moving forward very quickly.

Almost every week we have a new developer come in to talk to us about what the possibilities are down here. The interest is high, it's just finding that correct market time period to move forward.

It actually has helped them participate more, because they come to us more with their concerns and the things that they are facing. We try to find a way to respond to that need. It's enabled us to be a little bit more flexible, a little bit more creative with our assistance programs. They actually work with us more closely now because there aren't other venues available.

Actually, in ... Henderson, we don't ever really buy properties that are not for sale. Most of the time, people come to us and ask us if we're interested in buying their properties. A lot of time we're not, but occasionally we are and we purchase it for fair-market value. And it's a mutually agreed upon market value. Our council doesn't believe in the use of eminent domain and has never used that option. In fact, it voted to take that tool away from itself. We don't ever consider eminent domain in Henderson.

It could possibly be different if they wanted to do a major road or something, but that's not something we typically deal with. That would be (the state Transportation Department) or something. We don't have that problem.

We typically don't have holdouts, because if somebody doesn't want to sell, we work around them or make an adjustment. We're not going to pay exorbitant prices and give somebody a windfall of cash, nor are we going to stop a project because somebody won't cooperate. We'll find an alternative solution.

They are. Actually, somebody in community development is our project lead for the Boulder Highway corridor, and we have somebody in redevelopment that works on that, too. It's two different projects, but they are actually very much interrelated. Eastside, in large part, is residential. The whole thing. There are strips of retail, and they will develop more as we go on, but in large part it is residential. Along Boulder Highway, (the Regional Transportation Commission) is actually looking at the bus Rapid Transit System, not necessarily beautification efforts. The city is doing its own beautification plan in conjunction with that, but it can go separately. The two don't have to go together. If something was to happen and for some reason the bus Rapid Transit System was going to have to hold off for a time, or something like that, our plan would still move forward. We are still putting into place criteria for development along Boulder Highway, for landscaping, all those kinds of things. Those things are still moving forward. It's a separate project that we are working in conjunction with RTC.

That's an option now. The same things that are available in downtown are available in eastside. We have a lot-improvement program; a revolving fund; we have a sign grant program that helps with signage. We haven't had a lot in eastside yet take advantage, but it's fairly young. It's only been in existence, really, going on two years. It usually takes one or two businesses before people really believe it is what we say it is. Then we see a domino effect and so far - and largely in part because businesses are just struggling now to survive - they aren't really thinking about if they need a new coat of paint, they're thinking about how they're going to make their next payment. But we have those assistance programs in place already.

The return is multifaceted. I don't think it's just a monetary return. We will see that. We see that increase in tax increment every year. The tax increment has gone up. But what we're seeing more than anything else, we see people walking on Water Street. We see people coming down here to go to dinner and then go to a performance in the events plaza. Or going from gallery to gallery and bringing their kids down to do arts education. We see residents of surrounding neighborhoods walking to the area, and going from business to business or going to an event. So, it can be that social interaction has greatly improved. Vitality has greatly improved. People walking more, which means they're - it might be very minor - but it is a reduction in the use of your car and the use of gas and those types of things. What we're trying to do is provide not only people in the area with something to do, but in the surrounding areas as well, with the opportunity to live, work, play, everything that they need in their specific area, so that they have that option of getting everything they need in one location so they are able to save money and time and everything else. And, so, I think there's many different aspects of the return we're seeing, and they're all positive.

IN BUSINESS LAS VEGAS

We have a lot. We have the Meridian, that's completely leased up. It's the first fully mixed-use building on Water Street. It's got retail, residential and office in one building - fully leased and doing well. They've released us from their guarantee. They're performing very well.

We have Water Street South that's completely built and has actually been sold for a profit for its owners, which was the intent in the first place - also fully leased.

Pinnacle is built, it's fully constructed. We have Water Street improvements that have happened: the widened sidewalks, increased lighting and street furniture and amenities for pedestrians. Raffi Architecture moved from a location they had been in for over 20 years - (it) saw the potential and moved down here. We're seeing unique and viable businesses move to the area.

In the last year we funded over 150 home improvements for residents - not only in downtown, but in the eastside as well. You can drive through the neighborhoods and almost pick out which ones have participated in the program. There is now a pretty long waiting list for people to get into the program for the next fiscal year, which starts (in July). I think there are many, many, many success stories, even for the old buildings that have done face-lifts and now have a fresh, new look; for the new businesses that come down here and are able to get a fresh start or the assistance they needed to get on their feet, so that they can be successful. We have a lot of success stories down here. It's through the vision of our City Council (members). They had great vision and they continue to back that vision.

They are the board. Yes.

I think just like any other area, it's in a large extent unproven because the changes are fairly new. It's a very hard market right now for anybody, no matter what the location is. I think many of our challenges are the same as they are anywhere else. It's mostly the market and getting people to take that first chance and come down here. The people that have, I think you would hear very good things from. They are very happy they did.

I think Water Street is unique, in that it's a real downtown. It has naturally evolved from what it originally was. It was the original downtown. You can find shops and businesses here that you can't find any place else. They're unique. We have Goldcasters (Jewelers), where you can go in and create any kind of jewelry you'd ever want to have. Or we have professional businesses and unique salons. We have business owners who know your name when you walk in the door and say, "Hey, how you doing? You want your special today?" Things like that.

We're not trying to compete with those other areas. It would be futile. We're not the same and we don't want to be. We want to be different. We want to be the place that people come and bring their families and go to the farmer's market, and go shopping and get their fresh fruits and vegetables; then go to a gallery and go to Third Thursday and see different types of art and let their kids have an art education experience; then go to a performance in the events plaza that night. We have weekly concerts now during the summer. Always a different type of music (genre), different types of interaction. There's always something happening down here and that will continue to grow. It's something that you can always bring your whole family to. So, we're unique and different, and we want to stay that way.

As I said earlier, both Cherry (Development's Water Street Commons) and City Tower are projects that are very large projects for us. Both of them have requested delays, but as I said, it's in response to the market. But they're making progress in between. There's behind-the-scenes progress, but it's progress nonetheless. Could they still not move forward? Sure. Just as with any other project, but we meet with them on a regular basis. We feel like they are making the appropriate response to the market. I think it would be a mistake for them to move forward too soon. We've seen a whole bunch of other projects that did the same thing that are either stuck midway through or have completely failed. (Cherry and City Tower) are not doing that. They have a substantial personal investment in the project and have asked, really literally, very little from us. So, we're not out anything by allowing them to respond appropriately. I think it's the right thing for them to do. I don't think they're failing at all. I think they're making the right decision to respond in a struggling market.

Oh, absolutely. No doubt. If you look at Lake Mead Crossing, at their main signage at the corner, they have a big Water Street District sign. They are very much a part of the Water Street District and have worked very closely with us - very different market; very different types of stores that we have on Water Street - but nonetheless a very, very important part of our Water Street District. And they are for many, they will be the first thing people see as they're coming up here. They're working with us as a partner.

They have all of their approvals in place. But when everything (the market) kind of took a tumble, the owner decided she might be willing to sell to the appropriate parties. She's put it on the market, but has passed by potential buyers that she doesn't think would be an appropriate fit.

The banks have greatly increased their preleasing requirements, which has been a hardship for a couple of our businesses or for a couple of the projects for the same reason. Businesses don't want to commit early out, because they don't know whether they are going to be in business this time next year.

It's kind of a chicken and egg, and I think we're just going to have to ride it out.

Again, all of her (Judy Henkens of Asset Realty) drawings are approved. Everything's in place. If the market made a miraculous adjustment, and she was to move forward, she would be able to break ground in a matter of weeks because everything's in place. It's just, again, waiting to respond at the appropriate time.

I think it will have a totally different and improved look and feel. We already have a great foundation, and we have great buildings that you can start to see where it's going. I think it will be vibrant and active with people coming and going all the time. I think it will be known as the place for events, family events in particular, for the area. The place to go for unique shopping, and just a unique experience in general. Some place you can go to and have an experience you can't have any place else.

Not only that, but because it was appropriate. The city was born in (World War II) and that's the architecture that was prominent in that time period. We wanted to celebrate that. We wanted to celebrate the fact that Henderson was born in the war effort and that we have patriotic ties. We are very much proud of our heritage and felt like that was an appropriate way to do it.

Same you can see with the murals that are throughout the downtown. They celebrate our heritage.

Well, we have all of the projects that we talked about happening in downtown. We have the Boulder Highway corridor - we should see lots of things happening there. We have Cadence - they've already started their cleanup efforts. That will be a humongous project for us that I think we'll see happening over an extended period of time. It will be phased over an extended period of time, so we'll continue to see one improvement over another happening there. I think we'll see a lot of changes along Boulder Highway; a lot of responding to the need for sustainable buildings. I think that's something that will be very, very important to us.

The city as a whole, actually, is looking at everything it does as having sustainable components or LEED certification of some kind. And we'll be doing the same thing. We're establishing criteria for assistance. If a project meets certain criteria: Are they sustainable, do they bring jobs to the area, what kind of jobs do they bring? We're creating criteria to help us pave that way - that's where I see it going. To more of the mass transit-friendly, pedestrian-friendly, sustainable, responsible development in the future.

Not really. It's hard to say, is it the market, or is it a specific project that has caused one thing or another. Like I said, we continue to have businesses moving in. Each month almost it seems a new business has come in. We continue to have a lot of interest in the redevelopment area and bringing projects down here. We continue to see things happening at Lake Mead Crossing. So, we haven't had a lot of negativity - anymore so than any place else has - with the same types of things that have been happening everywhere. I mean, there are businesses closing everywhere: the District and the mall and everyplace else. And I think we haven't had an unbalanced share of that happening. It's similar to what's happening everyplace else.

I just think that people that haven't been here in a while would be really surprised to see what's here and five years from now, they'll be really, really surprised to see what's here. I think it's a breath of fresh air. And it's going to be the same in eastside. We'll see lots of positive changes that will only help the communities get better and better.