Plans to Create a Community of Start-Ups in Las Vegas Hits Speed Bumps

Zappos CEO Tony Hsieh had a vision to create a community built around tech start-ups and small businesses in Downtown Las Vegas, however four years after announcing the Downtown Project, which has seen an investment of $350 million by Hsieh, the entrepreneurial paradise he envisioned has yet to come to fruition. Aimee Groth reports in Quartz that the Downtown Project has suffered a series of set-backs that have tempered hopes for the quick creation of a new community that many had hoped would fuel a burgeoning start-up scene in Las Vegas.

In early 2014, Downtown Project removed the word “community”—originally the lynchpin of its messaging—from its mission statement and core values. In February of this year, Downtown Project’s co-working space nearly shut down. Container Park has become a tourist destination but not the world’s shipping container capital. And The Vegas Tech Fund (now rebranded as VTF Capital) partners say they made too many investments too quickly. A few weeks ago, Downtown Project’s new CEO stepped down.

Groth reports that Hsieh, speaking at the Recode Conference earlier this month in Las Vegas, expressed regret that he did not focus on building affordable housing as part of his plans. Current housing in the area is in the high-end and low-end of the price spectrum, with very little in between.