The City of Las Vegas is moving forward with a proposal to create an immersive entertainment district for tourists on 35.5 acres north of Area15.

At the August 21 City Council meeting, a representative for the developer said the district would include the previously announced horror-themed experience from Universal Parks and Resorts, as well as retail and office space, a hotel and multi-family housing.

“Area15 is fast becoming recognized as a premier destination for creatives to showcase their intellectual property at a physical location,” said Kyle Sutherland, director of development for the landowner and developer Fisher Brothers.

“The success of Area15 has led to further interest in expansion of the Area15 district directly to the north. We envision the district will become a premier immersive entertainment and retail district in the country and even in the world.”

Area15 opened in fall of 2020 and, despite the pandemic, quickly became a booming tourist attraction specializing in immersive and experiential entertainment. According to a preponderance study conducted by Johnson Consulting for the city, the new district north of the complex will be home to retailers and tenants who want to be “part of a dynamic and constantly evolving community … that transforms visitors from spectator to participant through entrancing entertainment programs, living art experiences and culinary adventures.”

Fisher Brothers is planning a 200-room hotel, 585 multi-family housing units, 518,000 square feet of retail space, 320,000 square feet of office space, and 100,000 square feet of “horror-themed immersive entertainment.” These are expected to bring $796 million in annual on-site spending from Las Vegas visitors by 2037, according to the preponderance study. 

The anchor tenant for Area15’s expansion will be the year-round horror experience from Universal, originally announced in January 2023. According to a news release from the company, the attraction will hinge on a “library of classic horror films and today’s most terrifying tales.” The concept marks Universal’s first creation of a permanent horror experience beyond its theme parks in Florida and California.

Councilwoman Olivia Díaz, whose ward includes Area15 and the development area, says the community can expect thousands of jobs from the proposed expansion, including unique opportunities for local creatives or docents. Initial conversations with Universal executives included plans to recruit locally for job opportunities and collaboration with her office to alert residents and locals about auditions and job openings, she said.

“I was very pleased to hear that they want these jobs to go to our community,” Díaz says. “Especially those that live closest to the project who may be within walking distance and could benefit from a second income, or this could be their primary job.”

The city council voted unanimously to adopt a resolution to move forward with the process of creating a tourism improvement district for the project.

Fisher Brothers is looking to develop the area north of Area15, bordered by Sirius Avenue to the south, Rigel Avenue and Wyandotte Street to the west, Teddy Drive to the north, and Rancho Drive to the east. When completed, it’s estimated to bring almost seven million annual visitors by 2037, “anticipated to be out-of-state and non-local visitors,” according to the study.

Making this vision a reality will require major infrastructure upgrades, Sutherland told council members.

“There is a challenge to developing as we have planned. The location is currently served by aging infrastructure intended for lower-density uses. There were lots of single-story buildings,” Sutherland said. “And now, we’re proposing more dense development and additional stories to those buildings. The development would require an upgrade to this infrastructure and that upgrade is a major project.”

To fund those upgrades, Fisher Brothers is asking the Las Vegas City Council to create a tourism improvement district (TID), which would allow the developers to utilize a portion of any newly generated sales tax in the development to pay for improvements like new water and sewer lines and parking garages.

“If no new sales taxes are generated, the developer does not receive any funds, so any incentive is strictly performance-based,” a Fisher Brothers spokesperson wrote in an email.

“Approval of the TID will allow Fisher Brothers to invest in infrastructure necessary to maximize the potential of the site for the benefit of both the project and the City of Las Vegas.”

If the TID is approved, the spokesperson continued, Fisher Brothers will be eligible to receive rebates for portions of new sales taxes generated by the development, which are used to offset the cost of necessary infrastructure and parking additions needed for expansion.

One of the requirements for the creation of a TID is that the area has had zero sales tax generated in 120 days. In this case, there has been little to no sales tax generated for many years, the spokesperson said.

There also must be preponderance that the area will attract tourists and generate sales tax revenue from outside the state. The study notes that the development is expected to bring in $15.8 million annually in sales tax revenues by 2037.

“As a result of them coming and bringing that visitation, there’s a level of dollars that are invested and poured back into the community in different ways based on the consumption of those visitors to our fabulous city,” Díaz says.

The Nevada Commission on Tourism will hold a public hearing on the proposed tourism improvement district on September 11, said Dina Babsky, deputy director of economic and urban development for the City of Las Vegas.

Following that meeting, the city council is expected to introduce an ordinance in October that would establish the TID.

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