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In business real estate Lots of foreclosures starting, but few seizures so far By Eli Segal staff writer Countless Las Vegans fell behind on their mortgages when the housing market collapsed, but many stayed put in their homes, living for free as banks struggled to seize the properties. Now, years later, many remain in the homes. And odds are, the banks won't toss them out anytime soon. Although lenders start the foreclosure process on thousands of homes a year, they seize only a small percentage. Seven percent of borrowers were at least two months behind on their mortgage payments as of Sept. 30, almost double the national rate, according to Trans-Union. But lenders have foreclosed on an average of 454 valley homes a month this year, down from 992 a month last year and 2,542 a month in 2011, according to RealtyTrac. Nevada's robosigning law took effect in fall 2011, forcing banks to provide more paperwork before they seize homes from delinquent borrowers. That drastically slowed the foreclosure process. Wealthy investors also are increasingly snapping up properties pending foreclosure at auction. Third-party buyers have picked up an average of 204 local homes a month this year at auction, up from 50 a month last year, according to RealtyTrac. But even as banks refrain from seizing properties, they still regularly file more than 1,000 default notices a month to start the foreclosure process. The default notices serve as a warning to let homeowners know they have to do something to fix the situation or they will lose their homes. This year, an average of 1,392 default notices have been filed a month against valley homeowners, up from 1,014 a month in 2012, according to RealtyTrac. "Nevada has been on a bit of a roller coaster ride," RealtyTrac Vice President Daren Blomquist said. Lenders also prefer to do short sales, a cheaper way than foreclosure to unload distressed homes, said David Stiff, principal economist at CoreLogic CaseShiller, a housing-data group. However, some believe that banks are avoiding foreclosure to limit the valley's inventory of homes for sale, which in theory leads to rising home prices and helps bankers collect more money when they do repossess and sell properties. "They're just stacking them up," real estate lawyer Benjamin Childs Sr. said. Two new laws could upend the situa- tion. Senate Bill 321, dubbed the Homeowner's Bill of Rights, aims to make it easier for residents to avoid foreclosure and Assembly Bill 300 relaxed the robosigning law to make it easier for banks to foreclose on homes. Noah Herrera, a Platinum Real Estate Professionals agent and vice president of the Greater Las Vegas Association of Realtors, anticipates that banks will continue filing more default notices. Lenders are adjusting to the Homeowner's Bill of Rights, which took effect Oct. 1, and "now have a clear pathway of what they can and can't do," he said. The days of living at home without paying a mortgage are over, according to Herrera. "Things are going to start moving," he said. arts Funding issues prompt plan for makeover of Cultural Center By Andrea Domanick staff writer For two years, the theaters and art studios of the Reed Whipple Cultural Center have sat in limbo, its weathered beige walls in a state of flux since city budget cuts forced its closure in the wake of the economic downturn. Supporters are hoping to inject life into the 50-year-old building, once a hub of the city's performing arts scene, to create a modern facility at the heart of downtown's Cultural Corridor that will house a dozen local arts organizations. Doing so, however, comes at a cost — approximately $45 million in necessary renovations and construction. The first attempt to revitalize the center was led by Las Vegas Shakespeare Company last year when it acquired the first right to buy the building, 821 Las Vegas Blvd. North, with plans to transform it into a dedicated community venue for its professional productions. But that effort fell apart after a year of delays and bureaucratic reshuffling during which efforts to raise its capital objective failed. Now its sister company, Nevada Repertory, is leading a second go at the project, relaunching it as the Cultural Corridor Theater Center, with a goal opening date of September 2015. The board behind the project, spearheaded by Nevada Repertory President Michael Gill, has introduced a vision in which the CCTC will function as an independently operating nonprofit to provide a dedicated rent-free space for 12 non8 20131216_VI08_F.indd 8 STEVE MARCUS new life: Plans are in motion for the Reed Whipple Cultural Center to relaunch in Septemper 2015. profit arts organizations in the valley. Bringing together performing arts nonprofits otherwise in competition for space, funding and other resources holds the potential to be transformative for the valley's performing arts community, this time with the added hope that including more stakeholders will broaden the project's appeal, allowing for a greater chance to meet a daunting funding goal in a city not typically known for its support of the arts. "The truth is, we didn't have great success at raising money as just one theater company. It was a little philosophical and a little bit financial," Gill says. "When we actually sat down and did a calendar on how many weeks we'd need to use stage for the Shakespeare Company, we found out it was only 28 weeks of the year. That got us thinking that maybe there is a bigger and better mission here to address." The building was opened by the Church of Jesus Christ of Latter-day Saints in 1963 as a stake center and recreational facility. It was sold to the city of Las Vegas in 1970 and served as a home for arts nonprofits from 1972 to 2011. The property was acquired and reopened by Las Vegas Shakespeare Company in 2012. Renovation plans for the CCTC include expanding its northern side to create a new lobby and offices for the Rainbow Company and refurbished theater and classroom space for year-round teaching and performances. The new venue also will host two to three commercial tenants, including Rosemary's Cafe, with the goal of generating income to allow the CCTC to be self-sustaining. Karen McKenney, cultural supervisor for Rainbow Company Youth Theater, says a return to the space would be transformative for the performing arts nonprofit, which was forced to reduce its seasonal performances and class sizes after relocating to Charleston Heights Arts Center, where it competes for space and resources with dance, music and art classes. "We're looking forward to collaboration with other (arts nonprofits) in that center. To have a space that is just for Rainbow opens up so many opportunities to provide more options to the community," she says. Though Nevada Repertory is aiming to close the building for construction in the third quarter of 2014, the CCTC must first overcome a number of hurdles before it can consider breaking ground. While the nonprofit has already secured 50 percent of its capital fundraising goal, the CCTC's success will ultimately depend on being incorporated into downtown's Centennial Plan, which according to Gill would make the theater eligible for grants, city funding and other benefits that would greatly reduce construction costs. | 16 DECEMBER 2013 | 12/12/13 1:41:51 PM

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