LVCVA master plan vote smooths path of potential Convention Center upgrades

Wednesday, March 9, 2005 | 10:53 a.m.

The Las Vegas Convention and Visitors Authority's board of directors is convinced that a $400 million expansion of the Convention Center is a bid to compete with other popular convention destinations and not a ploy to steal business from local resorts.

The board voted unanimously Tuesday to approve an updated master plan for the 2 million-square-foot center, paving the way for LVCVA executives to begin detailing efforts to upgrade the facility. The plan was first announced in January.

"We need to avoid the temptation of adding product that competes directly with existing successful facilities," said board member Jim Gibson, the mayor of Henderson.

LVCVA Chief Executive Rossi Ralenkotter called efforts by the LVCVA and representatives of the privately operated Sands Expo Center and the Mandalay Bay Convention Center "co-opetition," adding that sales representatives from the three major convention facilities in Las Vegas often make joint sales calls.

The strategy, he said, is to lure business to Las Vegas away from cities such as Chicago, Atlanta, New Orleans and Orlando, Fla.

"It's a good example of a public sector-private sector partnership," said board member Don Snyder, president of Boyd Gaming Corp.

The unanimous vote bolsters the board's opinion that the use of public funds generated by a 9 percent room tax does not represent unfair competition to resorts that play host to a variety of corporate meetings, conferences and small trade shows.

In 1999 Las Vegas Sands Inc. filed suit in Clark County District Court accusing the LVCVA of using government bonds to expand the Convention Center, unfairly authorizing tax-subsidized competition. A judge ruled against the resort, which operates the Sands Expo Center, in its bid to stop the 1.3 million-square-foot South Hall expansion project at the Convention Center.

The board's brief discussion of the purpose of the expansion followed a report by Craig Skiem of Minneapolis-based Conventions, Sports & Leisure International, an LVCVA consultant on the project.

Skiem explained that what the Las Vegas Convention Center lacks is multi-use general session space. The LVCVA's project includes construction of a second-story general session area at the Convention Center's central hall.

The consultant's report also said the Convention Center could use additional meeting space and better circulation -- both of which are addressed in the updated master plan.

The Convention Center's strength is in the amount of exhibit space it houses, which is one of the reasons why Las Vegas has consistently held the top position in housing the most Tradeshow Week 200 events -- an annual list of the top trade shows staged in North America by volume of exhibit space sold. From 2000 to 2003, Las Vegas increased its share of Tradeshow Week 200 events from 16 percent to 19 percent. The next-closest convention host is Chicago with a 13.5 percent market share.

In other business, the board authorized the sale of refunding bonds to refinance LVCVA debt. The bonds are expected to be sold March 16.

The board also saluted Snyder, who is retiring from Boyd Gaming and will relinquish his seat on the LVCVA board. The Nevada Resort Association will recommend a replacement to the board and sources say it will be Snyder's replacement at Boyd Gaming, Keith Smith.

The board also rehired two showgirls and an Elvis. The board authorized spending $139,635 through the 2009 fiscal year to extend the contracts of the performers who attend "meet and greet" events on behalf of the LVCVA. Models and Elvis impersonators also sing and dance at Las Vegas marketing events.