Where does the Nugget Project stand now?
Submitted by Kirk Caraway on Wed, 07/28/2010 - 5:27pm
After yesterday's revelation that Gov. Jim Gibbons' office doesn't like the numbers they are seeing about the Nugget Project, what's next?
What the letter from Gibbons' Deputy Chief of Staff Lynn Hettrick was responding to was a newly completed study from Meridian Business Advisors that looked specifically at the feasibility of moving three state agencies to the new Carson City Center Project, AKA Nugget Project.
We are right now trying to get a copy of this report so we can find out more details.
The state office portion has been cited by project consultant Mark Lewis as a "critical" aspect of the overall development.
During past discussions, there were mentions that such a study would be undertaken, to prove to the state that consolidating these offices into one centrally located space would save them money.
Many people, myself included, had our doubts about this. Certainly there are ways to be more efficient, but trying to find enough efficiencies that justify moving to brand new class A office space when there is already a glut of space available? I also discovered there are many other hurdles such a project would have to clear to make this sort of move possible.
Hettrick's letter may not be the death blow, but it would seem the state office portion is now on life support, and the doctor has his hands on the power cord and is getting ready to pull.
The letter states that the Nevada Department of Health and Human Services is not interested in cutting 75,000 square feet of its current office space. If you read between the lines, it would appear that the governor's office is backing them up on this point.
We don't have the numbers yet from the new Meridian study, but the inference you get from Hettrick's letter is that not cutting that space makes the cost too high to consider moving. If that's true, then the state office portion is likely dead, unless someone can find a magical way to make the numbers work.
Hettrick also went to great lengths to point out misstatements in the report that makes it look like the governor is in favor of this. He also pointed out that the conversation Meridian had with the head of DHHS was "conceptual in nature" and did not discuss the reduction of 75,000 sq. ft.
In other words, Hettrick doesn't trust what Meridian is serving up. The fact that Hettrick made this rebuke in a public letter speaks volumes. It doesn't bode well for any future re-figuring of the numbers.
Even though Lewis labeled this as a critical part of the project, I expect that we will see some sort of scaled-down version presented at the end of August when P3 Development gets their plans together. It would likely include a library and maybe a new hotel.
But the real problem is parking, another item the Hettrick letter points out. The money the city is eying to do this project is enough to build the library, or a multi-level parking garage. It's unlikely the city could afford both. That would mean one of the private parties involved in this deal would have to step up.
The key was the state offices. With that part of the project in place, there would be money to build the garage, or at least have a captive workforce that would make a pay-to-park garage feasible.
I think I have laid out a strong case for why the Hettrick letter is important. But it should be noted that the Nevada Appeal buried the mention of this letter in the eighth paragraph of a story on page 8 of today's edition. I can't even link to it because it's not online, except as part of their e-edition. (Update: the story finally appeared online at 2 p.m. the day after it ran in print.)
Maybe I'm wrong, and they are right. I'll leave that to you to decide.
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