14,200 new hotel rooms OK’d despite growth concerns

Jeff Schweers

Thursday, April 17, 1997 | 11:59 a.m.

Already struggling to find money to pay for growth-related needs, the County Commission has unanimously approved 14,200 new hotel rooms over the next five years from a casino company that donated $102,500 to 1996 commission races.

The board's decision Wednesday to uphold a previous Planning Commission action allows Circus Circus to begin construction of a master-planned mile of hotel-casinos and retail shops on the Las Vegas Strip.

But some members had reservations about the impact of approving such a large project, which could generate up to 80,000 new jobs in the community and attract 4 million additional tourists a year.

"The concern these days in major projects like this is the impact on infrastructure in the community," Commissioner Bruce Woodbury said, "especially before we get assurances from the Legislature, if we get them, for funding for future infrastructure needs."

Woodbury said a moratorium on new hotel construction might be necessary to control growth if the Legislature doesn't come up with the new tax revenue needed for water, sewer and schools.

"I know the applicant is supportive of our efforts in the Legislature," he said, "but unless some of those things happen, projects like this will be very difficult for the community."

Circus plans to develop 121 acres on the west side of the Strip south of Tropicana Avenue, and 15 acres on the east side of the strip between Reno Avenue and Hacienda Avenue, with an expected build-out by 2002.

The sole opponents at the meeting were owners of the Sante Fe Trails Motel, a 12-room cinder block building sitting on a dusty half-acre on Hacienda surrounded by the planned time-share hotel.

After expressing concerns about traffic increases and having a hotel tower right behind them, Circus withdrew variances to build pedestrian bridges across Las Vegas Boulevard and within 10 feet of the street.

The company also agreed to a public design review.

Mike Sloan, vice president of Circus, reminded the board that the frontage road running parallel to Interstate 15 from Russell Road to Tropicana Avenue is part and parcel of the project.

"That alone costs us $45 million in land and construction costs," Sloan said.

Woodbury, who received $20,000 from Circus properties during his 1996 re-election campaign, said "my concern is about the larger impact on the community."

Sloan said he and the rest of the gaming industry have been pushing for a quarter-percent sales tax increase to help finance $3 billion in water and sewer treatment improvements. The gaming industry also has proposed raising the hotel room tax 1 percent to help finance new school construction and rehabilitation, but no bill has been introduced.

"There are many other infrastructure needs out there, not only that impact you personally as a citizen, but all future employees," said Commission Chairwoman Yvonne Atkinson Gates, who received $10,000 from Circus for her 1996 re-election campaign.

According to UNLV Professor Keith Schwer, each new hotel room creates up to three jobs in the community, while state labor statistics show job growth running along at six per hotel room. That means the Circus project could draw 40,000 to 82,000 new people, not including others who would move to the valley for other reasons.

"Hotels drive what happens to this county," Gates said. "Every time you build a new hotel, you've got to have new employees, who are going to need new housing. It creates a domino effect."

Gates said she hoped Sloan will keep an open mind about infrastructure funding, "because we have not solved all the problems. If we are to allow growth to continue, we have to find a way to pay for it."

Sloan agreed, and acknowledged the role Gates played in trying to bring talks about raising taxes to the fore to help pay for that growth. However, he said growth isn't entirely the hotel industry's fault, saying 33 percent of the new residents are moving to the valley to retire.

"Everyone is going to have to pay their fair share," Sloan said. "We all have to solve these problems because we're all creating the problem."