NAACP still pressuring MGM Grand

David Strow

Tuesday, June 13, 2000 | 11:07 a.m.

Saying his company hasn't done enough to promote black businesses, MGM Grand Inc. Chairman J. Terrence Lanni vowed to "intensify efforts to provide opportunities to African-American and other minority businesses in Las Vegas."

But the NAACP, not yet convinced of MGM Grand's intentions, said Monday it's pushing for a sweeping new agenda by MGM Grand to promote black-owned businesses in Las Vegas -- including the establishment of a $100 million fund targeted specifically at such businesses in Southern Nevada.

"We can't say that we are happy, because at the end of the day, we haven't received anything from (MGM Grand)," said Gene Collins, president of the local chapter of the NAACP. "We're going to wait ... and we'll find out what the MGM will do when we present our proposal to them."

MGM Grand's vow to increase spending at all of its Las Vegas properties with minority businesses came June 9 in a letter to Nevada Gaming Commission Chairman Brian Sandoval. In this letter, Lanni said the MGM Grand hotel-casino spent more than $38 million with minority and women-owned businesses since 1997, including $1.64 million with black-owned companies.

This figure, Lanni noted, was almost twice as high as the black-owned business spending claimed by Collins at the May 30 meeting of the commission to approve MGM Grand's merger with Mirage Resorts Inc. However, Lanni said, the number "is clearly not enough."

"I have called a meeting of our general contractors at which time they will be informed of our corporation's decision that all future bids must include a minority component," Lanni wrote. "We will not accept a bid that does not include such a minority provision. To my knowledge, this marks the first initiative of this sort in the history of the gaming industry in Nevada.

"I personally am very committed to the issue of affirmative action and affording opportunities to people of color."

One segment of this new commitment, Lanni wrote, will be to hold an "Opportunity Fair" for minority businesses in Las Vegas. Lanni said the fair would include any business owners identified by the NAACP, the Urban Chamber of Commerce, the Economic Opportunity Board's Micro Business Program and the Nevada Minority Purchasing Council.

The letter followed a meeting last week between Lanni and Collins, one described by both sides as friendly.

MGM Grand spokesman Alan Feldman said the decision didn't occur as a result of the NAACP's pressure.

"His decision was made when we walked into the room (with NAACP leaders)," Feldman said. "He explained to Mr. Collins that we needed to do a better job, and we took that commitment very seriously."

But Collins, saying the black business community has "been totally left out" by MGM Grand, said he needs to see actions rather than promises.

"We want everything to be run through the NAACP so we can make sure that not only minorities, but blacks will be included," Collins said. "The NAACP will make sure that African-Americans are treated equally fair as everyone else. We got involved in this because African-Americans, not other minorities, were not being treated fairly."

Collins disputed MGM Grand's contention that its flagship property spent $1.6 million with black-owned businesses over the last three years. This spending, he said, included a Hispanic-owned business, a non-profit organization, a business with 49 percent white ownership and a company joint ventured with a non-black firm.

Once these disputed companies are removed, Collins said, the MGM Grand hotel-casino spent $890,000 with two black-owned construction companies -- and just $60,400 with nine black-owned suppliers.

"That's totally, totally ridiculous," Collins said. "Anything they do is an improvement on $60,000. Any reasonable person would not be happy with those figures."

Feldman said the amount of money spent in the past was irrelevant.

"I don't think putting energy into that number is relevant, because that's what was," Feldman said. "The issue is what it's going to be in the future."

Collins said the NAACP is currently drafting a response letter to Sandoval that will outline the organization's proposed agenda for MGM Grand. In this letter, Collins said, the NAACP will propose spending levels by MGM Grand Inc. with black-owned businesses and hiring targets by the company among both employees and executives.

"It's not just about contracts," Collins said. "This is a picture that will engulf everything."

The keystone of the agenda will be the proposed creation of a $100 million fund by MGM Grand Inc. "to invest in the black community" of Las Vegas. Collins argued that this fund is only fair, given the fact MGM Grand established a $50 million fund aimed at minority businesses in Detroit.

"They have more properties here than they have in Detroit," Collins said. "They only have one casino in Detroit. We (black visitors) spend approximately $2 billion a year here, and we haven't gotten anything in return."