A Las Vegas Mob Museum on the U.S. Government’s Dime? Maybe!

Sin never goes out of style, no matter what the economic conditions, no matter what the location. Leave it to Las Vegas, Nevada, Sin City USA, to have the temerity to propose an homage to sin in the form of a "Mob Museum" commemorating the history of organized crime in America.

What's even better, Las Vegas is proposing that the Mob Museum be built with government money as part of the $850 billion stimulus package currently proposed by the Obama administration.

How can you not love that?

If built, the Mob Museum would be located in Clark Country Nevada and would cost $50 million. It would attract an estimated 250,000 tourists per year, and would include interactive exhibits where visitors can snap their mug shots, stand in police lineups and wiretap one another.

The project is "shovel ready" and would begin to generate jobs and revenue almost immediately after being funded. According to Las Vegas Mayor Arthur B. Goodman, the proposal is “absolutely falling within the four corners of what President-elect Obama is trying to achieve." At least, in his opinion it is.

The project could start within 30 days, generating much needed jobs and revenue for the depressed area. Tourism is to Las Vegas is what car sales are to Detroit, so while the museum has sparked some very angry posturing by various Congresspersons and Senators, it actually makes a certain amount of economic sense. There's just no point building convents or monasteries there, and those kinds of places don't generate much revenue anyway.

2904 Horned Owl Way in Clark County, Bank-Owned, was $1,759,000 in November of 2008, not listed at $149,900.

Las Vegas property has been hit very hard by the U.S. housing crisis, but the prospect of Las Vegas ever disappearing as a worldwide center for tourism is ridiculous. A legendary gambling city of wild adventures and spur-of-the moment marriages and divorces, Las Vegas occupies a spot in the global imagination that is not going to be filled by any other place. Dubai can build all the custom islands it wants, Vegas is the only Vegas there is or ever will be.

So, the idea, while crazy on the surface, bears watching. Foreign investors will want to keep a close eye on how much of the $850 stimulus package Las Vegas is able to claim (if any), and then watch where and when building will actually begin. Making an offer just before other interests move in will be crucial, but it will have to be in the right place. Currently, banks are willing to make fairly steep concessions on short to sales to buyers who have verified funds, so bargains are certainly to be had, but as with everything in real estate, location matters.

In fairness, it should  be noted that other Las Vegas schemes for tourist museums have come and gone many times, most notably some recent plans for an Elvis Presley museum never quite got off the ground but kicked around the press for quite a long while. A really enterprising foreign investor could seize the bull by the horns and  build both of these without any government help, then enjoy all the profits too. While that would not be a cheap project, if ever there was a time when local cooperation could be counted on, this is it.

For more general  information and tips on how and where to invest in United States real estate, check out our article on United States Real Estate Prospects for 2009. You can check out the Clark County listing pictured here for details and agent information, and also find others like it at Realtor.com, or read more about the Mob Museum and its current status in the Las Vegas Sun.