CEO OF ZAPPOS AND THE HOWARD
HUGHES CORP. ARE COMPETING TO
BUY THE LAS VEGAS 51s AAA LEVEL
BASEBALL TEAM

Zappos CEO Tony Hsieh plans to revitalize
the existing Cashman Center ballpark, a
10,000 seat stadium close to downtown, thinks
the team will succeed there and has already
planned to buy the old Vegas city hall for his
firm's headquarters.

The Cashman Center includes a convention center, a
theater, meeting rooms and parking and is owned by
the Las Vegas Convention Authority, although the
56 acres beneath it are owned by the City of
Las Vegas.

It is leased for one dollar a year to the Convention
Authority.

The Authority charges the 51s baseball team annually
$300,000 to rent the stadium. No matter who purchases
the team, the buyer will have to navigate a complicated
maze of public and private bureaucracy to close a deal.

A prospective buyer would also need approval from the
Pacific Coast League. The buyer would also own the
rights to operate ticket sales, concessions, parking and
merchandising.

A source familiar with Hsieh's vision said the CEO
doesn't buy into the belief that the 51s need an expensive
new stadium to succeed.

It would make it easier for fans to ride buses or stroll
the seven blocks between the Fremont Street Corridor
and the stadium.

Hsieh doesn't want Vegas to follow in the steps of Reno.
The Reno Aces ballpark, opened in 2009, is costing the
Reno Development Agency about one million annually
in debt payments and is soaking up revenue from car
rentals and other taxes.

ECONOMIC DIVERSIFICATION IS THE KEY
FOR SOUTHERN NEVADA TO AVOID ANOTHER
RECESSION, ALL BUSINESS LEADERS SAY

(Please read our previous blogs on diversification)

Economic growth has too long been focused on
gaming and construction, two industries that prove
to be the most vulnerable during the downturn
said the Governor's Office of Economic Development.

"What about defense and aerospace industries and the
health care industry?" The Nevada Development Authority
(NDA) can't do it all -- we need people deeply involved in
these industries for creative input.

It's not just knocking on doors. It's being able to see the
opportunities in the state and articulate to existing
companies that can capitalize on it."

"It's not about tearing down, but to look at what works
and build on it." The NDA is a good platform, clearly
bringing in new businesses."

Part of this took place in the recent legislature related
to economic development. Assembly bill 449, passed in
June, creates a "catalyst fund" with ten million in funds
from the state's unclaimed property.

The money will foster expansion of existing businesses
and to attract targeted industries to Nevada.

HAPPY DAYS ARE HERE AGAIN ?  --

-- Well, maybe not quite -- but they are getting closer
according to a UNLV economist at the Economic
Outlook 2012 meeting.

He's forecasting growth in every economic sector
in 2012, led by a 5.1 percent increase in visitor
volume and a 4 percent jump in gaming revenue
and housing permits.

"What we are seeing is not only the end of declines,
but the beginning of growth in Southern Nevada."

Visitor volume is at 2007 levels and hotel occupancy
is above 85 percent although room rates have fallen
25-30 percent since 2007.

Today's visitor differs from 2007's visitor -- they
spend less on gaming but more of other things.
They come from further away and stay longer.
Las Vegas is becoming an EVENT destination.

The Western Blue Chip Economic forecast shows
construction and employment growth in 2012 in
all western states.

Asked about a "jobless recovery", a spokesman
said that the nation and Southern Nevada are not
technically in one because jobs are being created
in expanding sectors of the economy.

"I think we are on the fringe of strong gains in
U.S. economic activity."

INVESTORS AND FIRST-TIME HOME-BUYERS
HELPED MAKE THE 40,033 EXISTING HOME
SALES IN 2011 THE MOST SINCE 2005 --

These new buyers helped drive the healthiest home
resale market since the bubble popped! The median
price was $110,000, almost a third of what it was
during the height of the housing bubble.

"We've got plenty of investors at these current
prices", said a spokesman. Although prices have
dropped significantly, it is not always easy to get
into the market and tap into bargain-priced
properties.

Home buyers face lender delays and reluctant
appraisers plus the competition from other anxious
investors and home-buyers.

A recent home-buyer said, "it is not a quick process.
You have to be patient."

Banks are sometimes understaffed, unable to handle
the deluge of mortgage applications. Appraisers are
low-balling their appraisals struggling to assess the
ever-changing value of so many homes.

But patience and lots of it are still paying off for an
increasing number of buyers trying to take advantage
of this market which is indicated by the volume of sales.

Many investors are paying cash for homes and
condos, others with good credit are putting large
down payments on properties.

One successful buyer's advice -- "if you have some
money saved up and are looking for an investment
in Las Vegas, it's worth looking into." There's a
lot of inventory out there. Go the extra mile and
do your research. "

FROM CONCEPTS TO BUSINESS PLANS.
AT LAST -- A REAL ATTEMPT TO DIVERSIFY
THE ECONOMY OF LAS VEGAS AND NEVADA

AB449 - Nevada's landmark development reform
law has happened and is in motion. Things are going
to change because this new law mandates it so.

Nevada's economy will most likely be built with
5,000-job company relocations, expanding the health
and medical services industry by 15,000 positions in
the next 5 years, and creating 7,000 jobs in the new
ITecosystems industry, in addition to adding larger
manufacturing firms.

There are presently some 37 recommendations on
the table supporting 10 strategies aimed at bolstering
30 niches in seven industries.

(Please read our previous blog about Free-trade zones)

With this new legislation in place, this time might really
be different even though Nevadans have a degree of
skepticism about the notion of economic renewal
suggested in past years.

The Brookings Institution, Brookings Mountain West
(a partnership of the Brookings Institution and UNLV)
and SRI International presented their plan to Governor
Brian Sandoval last month for sweeping changes in
the state's economy.

They recommended an approach that calls on state, local
and private-sector leaders to set a compelling sector
strategy, put in place an effective set of aligned efforts
and build from the ground up.

Irv

SOUTHERN NEVADA AND LAS VEGAS
VISITOR COUNTS INCREASE-THE 20th
CONSECUTIVE GAIN IN PRIOR-YEAR
COMPARISONS --

-- The most in one month since March 2007.
The average daily room rate of $114.68 also
was 12.2 percent ahead of last year, the highest
since October 2008.

The 9.2 percent increase in convention visitors
was a large factor, plus a positive show rotation.

For example, the American Dental Association
met in Las Vegas in 2006 and brought in some
45,000 people.

The National Business Aircraft Association last
in Vegas in 2004 added 27,000 people. Through
the first 10 months of 2011 an estimated 32.9
million people visited Las Vegas, a 4.5 percent
increase from 2010.

This was the first time both shows in recent years
were in Vegas.

"It is predicted that the Las Vegas strip is on pace
to experience unprecedented growth in 2013 and
beyond, " Union gaming analysts told investors.

A reduction in auto traffic coming into Vegas was
attributed to an increase of air passengers, a more
lucrative mix of visitors. Fliers tend to spend more
money and stay longer according to statistics.

Auto statistics are imperfect because passengers are
not counted and it is not known if autos are coming
to Vegas or just passing through.

Convention attendance was 457,000 in October, up 9.2 percent.

Irv

SOUTHERN NEVADA IDEAL LOCATION TO BECOME A FREE-TRADE ZONE

"You can't improve the economy with banks -they aren't loaning money to get people backto work", according to Darryl Hill,  a Pahrump business owner of DCI Motors.

Talking to the new state Economic Development Board, he told them that they must create a Free-trade zone in Southern Nevada to help the state out of its recession.

He said, "banks won't grant loans to aspiring businesses and the state ITSELF must do more to create and build businesses." He also said, "I have seen free-trade zones benefit businesses greatly in China."

"You can't do it with banks -- it is atrocious how banks used the TARP (Troubled Asset Relief Program) money.  They won't loan money to help people get back to work."

Free-Trade zones are where businesses from several countries could exchange, trade or manufacture goods and NOT have to pay customs duties. 

A Board spokeswoman said, "the next 12 months are critical for Nevada and the board must pounce on new opportunities to create jobs."

Hill added," I have traveled extensively in China and Mexico for my Scooter manufacturing and sales company and I see a free-trade zone as a way to build the economy."

 Irv

LAS VEGAS SINGLE-FAMILY HOME
SALES ROSE IN NOVEMBER TO 3,159

This was a 1.3 percent increase from October
and a 13.8 jump from a year ago, according to
the Las Vegas Association of Realtors.

The median price was $125,000 up 3.3 percent
from October.

Importantly, the MLS inventory of available
units fell to 20,818, down 8 percent from November
2010. The number of homes without pending
offers fell 22.3 percent to 9,780 in November.

The modest increase in median price is attributed
to strong demand coupled with decreasing supply
according to a spokesman of the Realtors Association.

Real Estate agents expected a decline in inventory
since an October law passed making it more difficult
for banks and lenders to foreclose.

"This is our third year with 40,000 or more closings,
with less inventory especially in areas where homes
are really selling",  said a spokesman. "The number
of desirable properties listed for sale continues to
decrease especially in good neighborhoods, master
planned communities and nearby large employment
centers."

The ongoing sales surge is driven by investors buying
homes at bargain prices, restoring them, which tends
to drive up prices.

Short-sales are up in response to the new law making
foreclosures more difficult. There were 150 to 250
homes receiving default notices before the law went
into effect, now its 3 to 5 daily.  The full effect of this
new law probably won't be felt until later in 2012.

Irv 

LAS VEGAS BANKS FINALLY FORCED TO MAINTAIN FORECLOSED PROPERTIES --

A new city ordinance just passed requires banks that own vacant, dilapidated properties in Vegas to be fined or face jail time and misdemeanor penalties for allowing their properties to fall into a state of disrepair.

Hopefully, this will reduce neighborhood blight, crime and falling property values in both residential and commercial areas.

This ordinance has been in the works for months and the Nevada Bankers Association supports the efforts to reduce blight , although they object to the penalties.

Under the ordinance, banks would have 15 days after a notice of default to inspect a property to determine if it is vacant. If vacant, they will have 10 days to list it on a city registry a cost of $200.  

The property then needs to comply with health and safety codes.  If a bank or lender fails to comply, they can receive a notice, a citation, which could then result in a $1,000 fine or or six months in jail. 

Councilwoman Lois Tarkanian said, "this ordinance wouldn't have been required if the banks and lenders had cooperated and treated us with respect." 

Irv

MORE EMPHASIS PLACED ON SHORT SALES
AS A PANEL NOTES "FORECLOSURES ARE
NOT THE CURE FOR THE HOUSING CRISIS"

The National Community Stabilization Trust advocates
stabilizing neighborhoods with more short sales.
(please read our previous blog about short sales) .

Foreclosures are going to rise before they fall according
to the panel. Estimates on pending foreclosures are
about 850,000 nationally this year, 1.5 million nationally
in 2013, then back to present levels by 2015.

A panel of industry professionals at the inaugural MPact
Conference recommended that lenders initiate BULK
Short Sales to investors and non-profit institutions.

Lenders have to be more aggressive about offering
approved listing prices for short sale properties
all agreed.

The emphasis thus far is to foreclose, risking vandalism,
vacant boarded up homes which tend to drop the values
of nearby properties becoming an eyesore and a blight
on the neighborhood.

There are many reports nationally of homeless people
and crack houses inhabiting these vacant properties.
Situations have become so bad that some cities in the East are
considering demolishing these long-time vacancies.

A short sale keeps a family in their house or condo until
sold and some new family moves in thus stabilizing the
neighborhood.

Irv