Henderson OKs land sale for resort; deal has years to finalize

The Henderson City Council this week took another step toward selling a parcel of land to be developed for a hotel-casino, but the company behind the project has years to close the deal.

Under the contract approved unanimously by council members who were present Tuesday, Marnell Gaming Management LLC has five years to close on the sale of about 9 acres near Las Vegas Boulevard South and St. Rose Parkway if it wants to buy the property for about $4.3 million.

If the company closes after five years, the price will gradually increase.

Henderson will have the opportunity to cancel the contract if Marnell does not close within 10 years. However, if Henderson decides to keep the contract intact, it will have the land appraised again and charge Marnell that newly appraised price or roughly $6.8 million, whichever is higher.

If Marnell does not close within 15 years, the deal will automatically terminate.

The city purchased the land in 2019 to control the type of development that will go there. The land is worth about $6.5 million based on the average of two appraisals, but the city is allowed to sell it below market value for economic development purposes.

“This land parcel is positioned to be a gateway project for the Henderson community in addition to bringing economic investment and job creation,” Henderson spokeswoman Kathleen Richards said in an email.

Giving Marnell flexibility in the closing date of the sale will give the company time to flesh out the project, she said. Upping the price of the land if Marnell does not close within five years is supposed to encourage earlier closing and development, she said.

Before the sale can be finalized, the City Council must approve a development agreement.

According to the city, Marnell will be required to invest at least $250 million into the project and create at least 100 jobs at or above the average hourly wage in the state.

“I think this is an important piece of property for the city of Henderson and certainly the way that this agreement has been structured, it’ll ensure that we see development in a timely manner,” Mayor Debra March said during the meeting.

Anthony Marnell III, chairman and chief executive of Marnell Companies and principal of Marnell Gaming Management, could not be reached for comment earlier this week.

He has told the Las Vegas Review-Journal that the project wouldn’t break ground for at least a year, adding that it would be unwise to start during the pandemic. There is no set timeline for the project, he said.

Contact Blake Apgar at bapgar@reviewjournal.com or 702-387-5298. Follow @blakeapgar on Twitter.