Tuesday, May 3, 2005 | 9:28 a.m.
CARSON CITY -- Hotel executives told the Senate Judiciary Committee that the 8 percent cap on property taxes won't have any impact on planned expansions in Clark County.
The officials said the recent mergers make the gaming companies stronger to compete against casinos outside Nevada and among themselves.
Sen. Mike McGinness, R-Fallon, questioned about the "possibilities of monopolies."
"Are we putting all our eggs in one basket?" he asked.
Terry Lanni, chairman and chief executive officer of the recently merged MGM Mirage and Mandalay Resort Group, said the combinations of gaming companies "foster healthy competition within and without Nevada."
He said the larger companies would be better able to withstand any economic downturns.
There are an estimated $25 billion worth of projects -- from casino additions to new high-rise residential developments -- planned in Clark County, committee members were told.
Bill Bible, president of the Nevada Resort Association, the industry's state lobbying group, said the Nevada economy was diversifying.
He said that in 1993 a total of 62 percent of revenue at hotels in Las Vegas came from gaming, but in 2003 the amount had dropped to 52 percent. He said there has been a "shift to non-gaming" revenue from such items as food, rooms and entertainment.
Bible said a UNLV study shows that 416,000 new jobs were created between 1993 and 2003, but only 52,800, or 12 percent, were in the gaming industry. Some of the other new jobs were related to gaming, however, he said.
Sen. Valerie Wiener, D-Las Vegas, asked what, if any, impact the property tax limitations would have on expansion plans.
Scott Nielsen, executive vice president of Station Casinos, said the tax limitation "was important to us." Most of the customers that frequent these casinos in Clark County live in Southern Nevada.
"We're very satisfied with the solution you came up with," Nielsen told Wiener. He added the company is still moving ahead with its expansion in Southern Nevada.
"We feel more comfortable to go forward and make investments (in Southern Nevada)," Nielsen said.
Sen. Terry Care, D-Las Vegas, asked how much more Southern Nevada can grow in light of the limited land and water available.
Nielsen said the "future is bright." The national economy is strong and lots of people can afford second homes and can retire in the Las Vegas area.
Care questioned Lanni about the political clout of hotels. Lanni noted his company was not successful in the last Legislature in pushing forward its proposed tax plan. There is no desire on the part of gaming to control politicians, he said.
Sen. Steven Horsford, D-Las Vegas, asked Lanni what the industry's role should be in seeing whether there is affordable housing in Las Vegas where the price of homes is escalating.
Lanni said the rising prices are not limited to Las Vegas and people are being forced to live farther from their place of employment. He said he has not heard of any "substantial" problem with his workers.
He said his company was "not in real estate development" and provides a "good pay package" to its workers. But, he said, he will give that "some thought" to the issue of affordable housing in Southern Nevada.
Also testifying was Bill Noonan of Boyd Gaming Corp., who outlined the company's future expansion plans. He said his company is "excited" about expansion on the north end of the Strip.
archive
