Posted on23 May 2012.
By Mark Waite
Chris Brown didn’t get any support from Nye County commissioners Monday for the Contour Phase II project, the theme park they already pitched to the Pahrump town board titled Adventure Springs.
Brown said the first phase, an economic feasibility study, suggested the county and state could be approached to support the theme park, along with private sector financing to mitigate risk. State legislation to create an economic improvement zone was suggested during a presentation before the board.
The project is designed to accelerate tourism in the Pahrump area, he said, attracting tourists traveling from Las Vegas to Death Valley, or Spring Mountain Motor Sports Ranch, Front Sight Firearms Training Institute and other area attractions.
Developers envision a theme park with a town center, restaurants, cinema, visitor center, and an attraction that can’t be replicated in Las Vegas. A western themed village, water park, even an alien theme park, were some of the suggestions.
Pahrump Town Board members last June voted 4-1 to pay $154,600 for the first phase of the theme park project, or its feasibility study. The money came out of the town’s $950,000 tourism fund. The second phase would cost $207,000, which would identify financial support, he said.
The second phase will include creation of a package to use in discussions with town, county and state representatives, Brown said.
A lobbyist would be hired by the town of Pahrump to ask the state Legislature to approve a special economic improvement zone for the project, Brown said.
Legislation would also have to be changed at the federal level to lift restrictions on the 1998 congressional allocation transferring the 427 acres from the U.S. Bureau of Land Management to the town of Pahrump.
Brown said he was asked to appear at the county commission meeting by Pahrump Town Manager Bill Kohbarger. No backup information on the project was available for the meeting, but Commissioner Dan Schinhofen had enough concerns reading about it in the media to give it a thumbs down.
Schinhofen wanted to know how many projects Contour Entertainment brought to fruition that are now operating. Brown said his company didn’t have any.
“We had property given for a fairgrounds. I understand you’re saying that’s not necessarily the property that you would use for this, but what I read in that first phase $187,000, I think we got shorted by about $137,000. I have no inclination to support this project at all, especially considering the past performance,” Schinhofen said.
Brown told town board members last year that Contour Entertainment included former executives of Disney Corp; Brown said he spent 17 years with the company himself. But Commissioner Joni Eastley Monday had questions about Vercitas Corp and Don Holbrook’s role in the project.
“Vercitas was a subcontractor we used in a prior phase. That’s basically a gentleman named Don Holbrook, he was and would be our economic development subcontractor relative to this type of work,” Brown said.
But Holbrook wouldn’t represent Vercitas, he said.
“He would leave the Vercitas umbrella and kind of strike out on his own?” Eastley asked.
Brown said Holbrook incorporated another company called Economic Developer LLC, a Nevada corporation to incorporate the type of services he offers as a professional in the industry.
“We worked with him in other locations on a number of occasions and have a professional relationship with him,” Brown said.
Eastley referred to action taken by the Huber Heights, Ohio City Council in March to sue Holbrook, for which the city already paid a significant amount of money on a project. Holbrooks’ role has been significantly decreased with Adventure Springs, Brown said.
But Eastley said a social netwoking website with a page authored by former Pahrump Economic Development Director Al Balloqui listed Holbrook as a former employer.
“How many projects have you worked on with Mr. Holbrook and how many have come to fruition and are currently operating?” Eastley asked.
Brown said he met Holbrook on a project in Houston four years ago that’s still ongoing and Contour Entertainment has taken over as the primary developer.
That project is entering into a capital raise phase, he said. The prior developer failed to raise capital in 2008-2009 and had a lot of problems, Brown said. The developer stepped aside and the local improvement district asked his company to step up and take control. Brown said an East Montgomery County Improvement District is funding the development project, which is paid off by taxes as it is consummated.
Brown said Holbrook’s scope in the Pahrump theme park project has been significantly curtailed.
Eastley wanted more information about whether it would be a full blown theme park. Brown said he envisions something that cannot be replicated in Las Vegas.
“Fundamentally, that avenue boils down to things that take land that would not be financially or commercially viable in Las Vegas or things that are not allowed, due to city laws or ordinances, etc. These involved concepts like the think tank, which involves a tank experience which is land intensive and requires special accommodations,” Brown said.
Brown said the theme park still includes constructing ball parks, which will bring players to town for tournaments. Eastley thought that was a good idea.
Brown said the company recommended not to invest in designing the project until they find out what is economically feasible.
County Commissioner Butch Borasky had concerns about deviating from the original fairgrounds plan.
“You’re going to go lobby Washington to allow them for a public-private partnership, which is actually forbidden the way the deed was given on that property?” Borasky asked.
Brown said he won’t be the lobbyist. He suggested the town could move on to other properties, which the Pahrump town board has endorsed.
“We’re not restricted to that site, there’s certainly other land around we could use for this development,” Brown said.
The initial pro forma suggested a $35 million to $50 million development, Brown said. There would be investor solicitation, he said. A deliverable project of this second phase is to deliver an opinion on private sector financing, which Brown said would outweigh public sector financing.
“There are projects that could be done immediately with private sector financing on a smaller scale,” Brown said.
“That was a core anchor concept. This was developed as a structure that could grow over time,” he said.
Phase II was shrunk back to see what support is reasonable that developers could expect, he said.
Nye County earmarked a $181,000 grant for an irrigation well at the fairgrounds site, a grant that expires in September, County Manager Pam Webster said.
The other county commissioners didn’t have any comments to make during the presentation.
Don Holbrook
Nye County Commissioner Joni Eastley
« Theme park second phase up for vote
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