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May 28, 2012

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County approves new pact for McCarran advertising

Wednesday, April 21, 1999 | 10:51 a.m.

An unusual agreement between two high-profile advertising firms was approved by Clark County commissioners Tuesday, ending Joyce and Associates' 20-year reign as master concessionaire at McCarran International Airport.

Forsythe, Francis, Ernaut and Associates (FFE) will take over as the airport's advertising master concessionaire beginning July 1.

After Aviation Director Randy Walker told commissioners last month that Joyce and FFE were equally qualified to handle the task, commission Chairman Bruce Woodbury asked the two firms to work on a compromise.

Airport officials said the agreement was private, but Joyce and Associates President Robin Joyce said he will be a paid consultant to FFE for the duration of the five-year contract.

"Obviously it feels great to get the contract from our standpoint," FFE partner Steve Forsythe said Tuesday. "The fact that we were able to put together a working agreement with Robin that enables us to tap into his experience is invaluable to us."

The master concessionaire oversees and leases all advertising space in the airport, a business that is more lucrative in Las Vegas than most cities in the country because of city's healthy tourism industry.

Robin Joyce, who worked with his father, Jim Joyce, on the contract for years, took sole control in 1988. Revenue from the contract has increased 1,500 percent since then; last year it brought in $9.4 million. Joyce's firm funneled 80 percent of the revenue to the Aviation Department, which manages the airport. The new contract allows the airport to collect 85 percent with 15 percent going to the concessionaire. Despite his long relationship with the airport and his new limited role, Joyce said Tuesday he was satisfied with the agreement.

"I think what they were looking at was my experience and strategic know-how and marketing that we have enjoyed so successfully over the years," Joyce said. "I truly believe it's a win-win for everybody."

Critics have for years said the process of awarding lucrative contracts at the airport is political. The advertising agreement was no different.

Both firms had close ties to Clark County commissioners. FFE ran successful campaigns for Gov. Kenny Guinn and Lt. Gov. Lorraine Hunt, a former commission member. Pete Ernaut, Guinn's chief of staff, lends his name to the firm.

Joyce and Associates orchestrated successful bids for Commissioner Mary Kincaid and Jim Joyce helped with Myrna Williams' campaign when she was a assemblywoman.

Adding to the politics were two phone calls Hunt placed to Woodbury and Commissioner Erin Kenny days before the contract decision was to be made. Hunt told the two commissioners that choosing FFE would not be a mistake.

Each commissioner discussed their relationships with the advertising agencies, but Kincaid was the only commissioner to abstain.

Despite the controversy, Forsythe emphasized Tuesday that his firm is capable of increasing revenues at the airport and filling advertising vacancies, which he said have averaged about 20 percent.

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