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LAS VEGAS-Clark County this week extended its lease option agreement with the developer of the Beltway Business Park, a partially development industrial park that sits on 381 acres of county-owned land along the south side Interstate 215 between Jones and Decatur boulevards. The developer is a joint venture of Majestic Realty, which is based in City of Industry, CA, and locally based Thomas & Mack Co.

Slated for build-out in 2012, Beltway is expected to include 55 buildings, including 3.2 million square feet of industrial, and 2.8 million square feet of office, technology and retail. To date, the developers have taken down 211 acres, which is about double its minimum requirement under the lease option, leaving 145 net acres to be developed. As part of the agreement, the developer had to pay a one-time lease extension fee of $127,246.

Upon build out, which is expected by 2012, Beltway Business Park will include five million square feet in 55 buildings, including 3.2 million square feet of industrial and 2.8 million square feet of office, technology and retail. Exactly how much square footage has been developed on the land the developers already have taken down was not immediately available; Thomas & Mack could not be reached Thursday for comment.

The lease option agreement calls for the developer to take control of a parcel of properties prior to any development under 50-year ground leases. The developer then develops and leases buildings on the property, and the city, for its part, gets a percentage of the net income.

In March , Nevada Power, a subsidiary of publicly traded Sierra Pacific Resources of Reno, leased a new 288,000-square-foot building on 16 acres within the park at 7155 Lindell Rd. The company signed a 20-year lease valued at $79 million. Due to its lower cost of capital Nevada Power leased the building in shell condition and is paying for its own tenant improvements, including 135,000 square feet of mezzanine office space that will give it a total of 423,000 square feet.

Last month , Clark County extended a similar lease-option agreement with EJM Development Co. for 430 acres here known as the Arroyo. The land is located along Interstate 215 between Rainbow Boulevard and Buffalo Drive. EJM has taken down nearly 200 acres in eight separate 50-year ground leases since the agreement was initiated and has developed 2.5 million square feet of office, retail and industrial space, with an additional 14 buildings to be delivered this quarter and next.

“The county receives a percentage of the net income and we have no carry costs,” EJM’s Kirk Boylston told GlobeSt.com at the time. “It’s a really good arrangement and I think you’ll see more of it; it gets rid of the uncertainty of the carry while also creating a long-term revenue stream for the public entity and at the end of the lease term they get it all back.”

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