realestate

Los Angeles drives Vegas tourism, investing in surrounding properties

Los Angeles' involvement in Hoover Dam and Las Vegas real estate ownership.

I
n the shadow of the Las Vegas Strip, a subtle yet significant presence has been quietly shaping the region's economy and infrastructure for decades. Los Angeles, often seen as a feeder city funneling tourists to Sin City, also boasts a more permanent stake in Southern Nevada.

    Property records reveal that the city of Los Angeles owns a substantial portfolio of real estate within 30 miles of the Las Vegas Strip, underscoring its deep-seated ties to the area. The Los Angeles Department of Water and Power (DWP) operates a hilltop lodge in Boulder City, as well as an outpost for DWP crews working on transmission lines. Additionally, the city owns at least 14 acres near Henderson's Lake Las Vegas community and a 2.5-acre plot adjacent to a housing tract along Interstate 11.

    Boulder City officials were unaware of some of these holdings until recently. "I have no idea what they do there," said Taylour Tedder, former city manager, upon discovering the DWP operations facility in his city.

    The connection between Los Angeles and Boulder City is rooted in the iconic Hoover Dam project. In 1921, Herbert Hoover proposed building a dam on the Colorado River to provide flood control, irrigation, and a reliable water supply for Southern California. Los Angeles sought power from the dam, constructing a 266-mile transmission line from the dam to downtown L.A.

    Las Vegas's rapid growth after the dam's completion was fueled by Lake Mead, which supplies about 90% of the city's water. However, in the early 1930s, Las Vegas was a tiny outpost with only 5,165 residents, compared to Los Angeles' 1.2 million.

    The DWP's lodge in Boulder City, built in 1931, was originally intended for the directors of the Six Companies consortium that constructed the dam. After completion, it was handed over to the DWP and now serves as a meeting space and gathering point for tours of nearby facilities.

    Meanwhile, the DWP operations center in Boulder City employs 13 staff members and maintains 23 vehicles, supporting the operation and maintenance of transmission lines from Cedar City, Utah, to Baker, California. The facility features a prominent "DWP" sign outside.

    As a major customer, Southern California receives a significant share of energy generated at Hoover Dam, with Los Angeles accounting for 15.4% and the Metropolitan Water District of Southern California receiving 28.5%. Public agencies in Southern California played a crucial role in managing the dam's operations until 1987, when the Bureau of Reclamation took full control.

    The DWP also owned over 80 residences that housed employees and their families during the dam's construction, which were largely sold by 1991. A commercial building in Boulder City, once home to DWP administrative offices, was acquired by the city government in 1995 and now serves as a community hub for classes and storage.

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