LV, Nevada officials work to preserve LVCVA bonds

Thursday, Aug. 5, 1999 | 11:34 a.m.

Las Vegas Convention and Visitors Authority President Manny Cortez has begun efforts to block federal legislation that could affect a 1.3 million-square-foot expansion of the Las Vegas Convention Center.

Cortez was in Washington Wednesday to address key representatives of the House Ways and Means Committee to head off a proposal introduced June 30 by House Majority Whip Tom DeLay, R-Texas.

DeLay's bill, which would tighten restrictions on tax-exempt bonds issued by state and local governments, is expected to get its first review by the Ways and Means Committee, which considers financial legislation. The matter isn't expected to be heard until after Labor Day.

Cortez worked both sides of the political aisle, meeting Wednesday with Rep. Charles Rangel of New York, the ranking Democrat on the committee, and House Majority Leader Dick Armey. The Armey meeting was arranged by Rep. Jim Gibbons, R-Nev., while Rep. Shelley Berkley, D-Nev., set up time with Rangel.

Berkley ripped DeLay's legislation, calling it "an embarrassment."

Berkley said she laid the groundwork for Cortez's meeting with Rangel weeks ago.

"As soon as Tom DeLay introduced this ridiculous legislation, I briefed (Rangel) on how this would not only affect the convention center in Las Vegas, but every arena, every convention center and every public facility across the United States," Berkley said. "It's the federal government at its worst interfering with local government."

Gibbons said Cortez's brief meetings were designed to educate House members about the impact of DeLay's bill on the LVCVA's expansion plan.

"I think Majority Leader Armey was impressed with how Manny Cortez articulated the issue," Gibbons said. "Mr. Armey is concerned about whether or not the bill that was proposed is good tax legislation."

Gibbons said because it's likely there won't be any movement on the bill for several weeks, other meetings are being planned with Rep. Bill Archer of Texas, chairman of the Ways and Means Committee, and with DeLay.

"They're all committed to working with us," Gibbons said of his congressional colleagues. "They're very receptive to information on how this tax policy would affect convention authorities."

Gibbons also said he would seek opinions from bond experts about the impact of the DeLay bill.

The Nevada congressman said he believes DeLay is sincere in his comments that his bill is not designed to hurt the LVCVA's convention expansion plans, even though he has cited the proposal as an example of how tax-exempt status is being abused.

A spokesman for DeLay could not be reached for comment.

Gibbons said it's too early to determine how the issue would be resolved and he is aware that the LVCVA is anxious about how long the proposal could delay the sale of bonds.

Morgan Stanley & Co., which is handling the bond issue for the LVCVA, expressed concern about DeLay's legislation when it postponed the sale of $150 million in revenue bonds for the project.

Morgan Stanley's postponement came after the Venetian hotel-casino filed a suit against the LVCVA in District Court to block the sale because the bonds were not approved by a public vote.

A motion by the LVCVA to dismiss the suit was expected to be heard today by Judge James Mahan. Cortez, who was scheduled to return to Las Vegas today, was not expected to attend the court hearing.

Gibbons said there is no mechanism in place for the withdrawal of a bill unless it is withdrawn by the sponsor. He said once legislation is introduced, lawmakers can either work to defeat it at the House or committee level or work with the sponsor and committee chairman for amendments that would prevent the bill from harming constituents.

"At this point, we have a great deal of options," Gibbons said.

Berkley said Gibbons should make a greater effort at persuading the Republican leadership to pressure DeLay to withdraw the bill.

"This should not be before the Ways and Means Committee and the leadership of his party should withdraw it," Berkley said. "It's bad policy, bad for this country and there's no excuse whatsoever that this should be before the United States Congress.

"The other side of the aisle says they're for keeping the federal government out of local decisions?" Berkley asked. "I'd say if you're going to talk the talk, you've got to walk the walk."