LVCVA is studying new market

Wednesday, April 10, 2002 | 11:06 a.m.

The Las Vegas Convention and Visitors Authority will spend $25,000 to study the feasibility of building a conference center in Mesquite that could compete with Las Vegas-area meeting centers.

Authority President Manny Cortez said Tuesday while the LVCVA board of directors is investing in a study on building a public meeting hall in Mesquite, he said he would not recommend using LVCVA funding for construction.

Cortez explained results of the study would be turned over to officials in the small community 80 miles northwest of Las Vegas. The study, which will be conducted by Economics Research Associates (ERA), Los Angeles, is to help Mesquite determine whether it could effectively market a public meeting hall.

The LVCVA already has spent $25,000 on a Mesquite market review, referred to by ERA as "Phase I." Phases II and III, authorized in a unanimous vote of the board Tuesday, analyzes construction costs and operational expenses for a conference center's first five years.

David Bergman, principal for ERA, said a Mesquite conference center would probably be marketed to small groups and organizations in Utah and Las Vegas as an inexpensive alternative to some of Las Vegas' high-end small meeting centers. Bergman specifically named Lake Las Vegas and Green Valley Ranch Station Casino as the competition for a Mesquite conference center.

"We're looking at groups that would utilize the golf courses and the spas that the Mesquite area has to offer," Bergman said.

One of the local properties named doesn't see Mesquite in quite the same light.

Dan Amato, general manager of the 496-room Hyatt Regency at Lake Las Vegas property, estimates 70 percent of his hotel's business comes from groups.

But Amato's not concerned about losing that business to Mesquite.

"I frankly don't think it would be much competition for us, because the type of customers we're working with are for the most part very familiar with the Hyatt brand name," Amato said. "I'm not sure we're going after the same market."

The same will be true of the Ritz-Carlton hotel under construction at Lake Las Vegas, Amato said.

"Between the powerful corporate identities of Hyatt and Ritz-Carlton, and our national sales force ... I don't think we would have much to worry about," Amato said.

Officials with Station Casinos Inc., operators of Green Valley Ranch, declined comment.

Two LVCVA members who represent casino interests on the board had differing viewpoints on the Mesquite proposal, even though they both voted in favor of funding the feasibility study.

Steve Greathouse, senior vice president of the Mandalay Resort Group, said because the LVCVA represents the interests of all of Clark County, it was the board's responsibility to review the Mesquite proposal.

Board member Cresent Hardy, a Mesquite City Council member, enthusiastically supported the plan.

But Bill Hornbuckle, chief operating officer of the MGM Grand hotel-casino, was reserved about the extent of the LVCVA's future participation.

"There's been a little bit of talk about that," he said. "All this is is a study. We'll see what happens next."

In other business, the LVCVA board agreed to hire a compliance auditor to review invoices submitted by PCL Construction Services Inc., the general contractor for the south hall expansion of the Las Vegas Convention Center.

Andrew Curd, regional vice president of PCL, Glendale, Calif., told board members Tuesday he is angry that he and some of his subcontractors have not been paid $12.6 million in claims, some of which are more than 16 months old.

The LVCVA hired Resolution Management Consultants Inc., Las Vegas, to review the dispute and is expected to have a report to the board within three weeks.

At issue are construction contract differences that resulted from 37 change orders on the expansion project. Curd said about $1 million in claims is in dispute, while Cortez said about $5 million in claims will be reviewed.

The project was complicated by a decision to incorporate a new physical plant to accommodate electrical needs of the entire convention center campus in addition to the south hall expansion. Cortez said the change was sought to upgrade to meet electrical needs for the convention center.

The convention center routinely plays host to trade shows that, through the years, have needed a growing volume of power, such as the National Association of Broadcasters, Comdex and the International Consumer Electronics Show.

Last month, PCL said its total charges to the LVCVA totaled $145.3 million. Cortez said the final total has changed since the building was completed in December.

Trade shows have already used the two-story, 1.3 million-square-foot building that opened in January.

Sun reporter David Strow contributed to this report.

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