$40 million renovation likely to start soon for Zappos headquarters.

The announcement 16 months ago that internet shoe retailer Zappos would move its headquarters
from Henderson to downtown Las Vegas started a buzz that the once declining downtownarea
would become a growing technology hub.

Expect the buzz to get louder now that Zappos is ready to renovate the old building they are planning
to fill with more than 1,000 employees.

On Tuesday the City of Las Vegas closed the deal to sell the old City Hall to a company that will lease
it to Zappos for $18 million. As early as today fences could go up as construction workers will start work
on a renovation that could cost about $40 million.

City Hall LLC, which is managed by Resort Gaming Group, is buying the old City Hall with a parking
garage across Stewart Avenue.

The company will lease the building to Zappos, which is owned by Internet giant Amazon to use as its company
headquarters.

In addition to the City Hall deal, they have options to buy about 10 acres across Las Vegas Blvd. for development
for about $9.3 million, a price that is set to escalate 6 percent annually every year they don't exercise the option.

The deal is seller-financed, meaning the firm will pay the
city directly for the real estate.

The transaction comes as Las Vegas is seeking to dig itself out of a recession. City leaders hope the downtown
area will lead the way. Recent months have included the opening of the Mob Museum, and the Smith Center for the
Performing Arts. The new City Hall has also opened.

But those projects were heavily subsidized by taxpayers and charitable donations.