Deal to bring Zappos to downtown Las Vegas is complete
20 December 2011
The deal to bring Zappos to downtown Las Vegas is done.
The deal to lease the building to the online shoes and clothing retailer is complete a year after announcing that Resort Gaming Group would purchase Las Vegas City Hall — which will be abandoned in early 2012 as city employees move to a new headquarters.
All that is needed is the approval of the Las Vegas City Council, which will likely come at the council's Jan. 18 meeting.
"Finalization of lease terms with Zappos is a significant step in bringing to fruition a pivotal transaction for the redevelopment of downtown Las Vegas," Andrew Donner, owner and founder of RGG, said in a statement. "My partners and I are humbled to be a part of something so special and are excited about the future of our great city."
The agreement had to be modified "to conform to legal points in the lease" between Zappos and RGG, the company said in a news release, adding that "the modifications are not monetary and do not result in increased risk to the city."
Las Vegas Councilman Bob Coffin, who represents part of downtown, said "it's a big deal that guarantees now that something will be developed downtown." That's important, in part, Coffin said, because he was never convinced of the city's plan to build a new city hall in the first place.
Coffin was elected last fall, after plans to construct a new city hall were approved.
"We spent a lot of money on City Hall, and I was never sure it was necessary," he said. "Everyone at City Hall was on edge" about the impending city hall sale.
"But Zappos is more than just a company; it's a culture and this is helping," he said. "Assuming (Zappos' parent company) Amazon doesn't slow them down, it should be just fine."
In an e-mail to Zappos employees, CEO Tony Hsieh said that with the finalized terms of the lease, "we are moving forward, full steam ahead to collaboratively design our new campus with input from all of you as well as our new downtown community. Look for more details about our new campus in early 2012!"
Zappos plans to move into the building in 2013, after extensive renovations. Terms of the deal were not released, but it has been reported that RGG would buy the building and more than a dozen adjacent acres for about $18 million. Zappos then plans to put about $40 million into renovations.
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