New Cashman rate increases still won’t pay for cost of running center

By Richard N. Velotta (contact), In Business reporter

Fri, Nov 13, 2009 (3 a.m.)

Although the Las Vegas Convention and Visitors Authority board of directors raised rates at Cashman Field by 30 percent and parking there by 33 percent beginning Jan. 1, it projects the building will still be operating at a loss.

Board members voted 11-1 on Nov. 10 to raise rates for trade shows and public events at the authority’s secondary convention hall near downtown Las Vegas.

Rates were raised from $6,130 a day to $7,110 on exhibit halls for trade shows, $3,000 a day to $4,000 a day on exhibit halls for public events, $300 a day to $320 for meeting rooms, $2,500 to $3,000 for the theater and from $4,000 a day to a negotiable rate for the stadium.

The board also approved increasing the parking fee from $3 to $4.

The authority agreed to offer a smaller discount to nonprofit organizations renting the hall. It has offered 50 percent discounts to government organizations and nonprofit groups, but under the new plan, government entities would still get the 50 percent break, but nonprofit groups would get only a 25 percent discount.

It was the first rate increase since 2002. But even though the new rates are expected to generate $100,329 in additional revenue in the 2010-11 fiscal year and $200,658 in the 2011-12 fiscal year, Cashman Center will operate at a loss, said Rossi Ralenkotter, authority president and CEO.

Ralenkotter said Cashman currently operates at a $4 million annual loss. With the new rates, which authority officials think won’t result in a loss of business, the annual loss would be $3 million.

Board member Kara Kelley cast the only vote against the rate increases, saying she thought the percentage increases were far too steep in today’s economy.

Once the vote was cast, she suggested the authority seek smaller, gradual increases instead of big ones over longer periods of time.

In other business, the authority unanimously approved sponsorships and financial commitments for events in four of the communities it markets, including the extension of a contract with the Professional Bull Riders Tour Series, which will add a global bull-riding event in Las Vegas in April.

The PBR is fresh in the minds of residents after the 2009 event ended last week. The three-year contract extension assures that Las Vegas will be home of the national championship in 2010, 2011 and 2012. The board committed $1.6 million for next year, $1.7 million for 2011 and $1.8 million for 2012,

Las Vegas will play host to the PBR World Cup April 16-18. Rodeo cowboys from Canada, Mexico, Brazil and Australia are expected to compete with the top American bull riders. The third-ever World Cup this year

drew 80,000 fans a night over 10 nights in Barretos, Brazil.

The authority approved $20,000 to fund Mesquite’s Branson Fest Out West Feb. 8-11, $160,000 for the Laughlin Town Wide Concert April 17 and $15,000 for the Cliff Keen Las Vegas Collegiate Wrestling Tournament in Primm Dec. 4-5.