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LAS VEGAS-The Las Vegas City Council this week approved adisposition and development agreement with Robert Zarnegin for thedevelopment of World Jewelry Center, a 1.2-million-sf developmentin the city's new Union Park district. The project includes 815,229sf of for-sale office space, 139,052 sf (98 units) of ultra-luxurycondominiums in a 50-plus-story tower and 225,000 sf of retailspace and structured parking.

The DAA calls for Zarnegin's Heritage-Nevada VIII LLC to acquirethe 5.9-site for the project by August 2009 and to commenceconstruction by October 2009, though it can use two six-monthextensions to push that deadline back to October 2010. The purchaseprice for the land is $10.3 million. The estimated cost of theproject is $927 million. As part of the development deal,Heritage-Nevada VIII will receive for 20 years a 50% rebate of theincreased taxes it will pay based on the increased value of theland due to the development.