McDonald backs LVCVA in battle with Venetian

Erin Neff

Thursday, Sept. 2, 1999 | 11:49 a.m.

Council spending

Here is how the Las Vegas City Council voted Wednesday to spend taxpayer money:

To Las Vegas Paving Corp. for Rancho Road storm drain and roadway improvements.

To Duncan Industries Parking Control Systems Corp. of Harrison, Ark., for the purchase of electronic parking meter mechanisms.

For various vendors for printing services.

To Scion Computers and Business Automation for printers and computer equipment.

For emergency generators for fire stations 5, 6 and 8.

Las Vegas City Councilman Michael McDonald led the way Wednesday in supporting the Las Vegas Convention and Visitors Authority fight with the Venetian hotel-casino over a proposed expansion of convention facilities.

McDonald, who also chairs the LVCVA board, told his council colleagues that a city resolution supporting the convention authority was needed to dispel rumors and misinformation levied in the courts.

"A lot of the information that has been disseminated during a heated battle has not been informative, it's been misleading," McDonald said.

The resolution, approved unanimously, supports the LVCVA's effort to expand its convention facilities despite a lawsuit from the Venetian and its adjoining Sands Expo Center.

Venetian owner Sheldon Adelson contends the LVCVA enjoys tax-free status that gives it an unfair competitive advantage over his privately owned convention center.

In July the Venetian sued the LVCVA in District Court, contending the planned $150 million expansion requires a public vote because it is funded with revenue bonds.

LVCVA officials contend the expansion would be funded through tax-exempt general obligation bonds.

District Judge James Mahan, however, rejected the LVCVA's motion to dismiss the suit, claiming the Venetian's case has merit. A trial has been set for Oct. 5.

"It's very important that the city of Las Vegas show support for the convention authority," McDonald said during the council meeting. "This will affect everyone sitting in this room or sitting at home (watching on TV)."

Mayor Oscar Goodman said the resolution was important because the LVCVA's expansion "is in the best interest of the city" due to its expected draw of tourists and conventioneers.

The Las Vegas Chamber of Commerce Board of Trustees and the North Las Vegas City Council have passed similar resolutions.

The chamber resolution states that it encourages businesses and citizens to support the expansion.

The expansion would provide an additional 1.3 million square feet of additional meeting and exhibit space projected to draw an additional 6 million tourists a year.

"The convention authority is the reason people come to Las Vegas," McDonald said. "It is run by some of the greatest people in the industry and it's vital that they prevail."