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StumbleUnion: City spending too much on mob museum
LVCEA says city put $11.5M into museum while cutting 200 city jobs
Tuesday, May 25, 2010 | 4:12 p.m.
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The largest city employees union in Las Vegas complained today that the city was putting $11.5 million into the economic "magic beans" of the mob museum, when it could be using the money to save employees from losing their jobs in June.
However, the city, in response, says the $42 million museum now under construction will bring in more than 200 new jobs during its construction phase and about 92 jobs when it opens.
The city also says studies show it will bring in about $20 million in revenue to the city's budget coffers for the next 10 years.
The back and forth is the latest in the Las Vegas City Employees Association's struggle to save jobs that the Las Vegas City Council plans to cut in its 2010 fiscal year budget, which begins July 1.
Mayor Oscar Goodman and the council have told union members they could save jobs if they would agree to no automatic increase next year in cost-of-living benefits, longevity pay or step increases, plus take an 8 percent cut in salaries and benefits.
The city has received a few offers from the LVCEA and the city's other three unions, but none that would cut so deeply into employees' salaries.
"LAS VEGAS CITY EMPLOYEES' ASSOCIATION FIGHTS TO SAVE 200 JOBS WHILE MAYOR GOODMAN GIVES PRESS TOUR OF $42 MILLION MOB MUSEUM," read the headline of a press release sent out today by the LVCEA.
The LVCEA complained that Goodman gave a media tour today of the Mob Museum, saying "It's evident where the City of Las Vegas' priorities are during these historic economic lows."
The union said the city took a $15 million loan out of the city's Sanitation Enterprise fund, of which $11.5 million is going to the mob musuem.
"Now is not the time for the city to go on a spending spree," Don King, union president, said in the press release.
"We have repeatedly tried to negotiate concessions that are fair to both the residents and employees of the city of Las Vegas, but with no avail," King said.
"The City is threatening 200 jobs, many of which are the jobs of single parents or one-income households; demanding 8 percent wages cuts across the board; putting a hold on everything else, yet placing its time and energy on spending $11.5 million of taxpayers' money on a mob museum," King said. "City Hall has bought the magic beans. It's absolutely unconscionable to destroy city employees' lives to build a mob museum right now. What is our mayor and council thinking?"
The union said the city had initially spent $7.5 million to get the mob museum going in 2006.
"It's time for citizens to know how much the LVCEA is willing to be part of the financial solution, but is being repaid with nothing but contempt by some of our elected officials," King said. "On top of all of this, the city has $53 million in hidden reserves and another $27 million in office supplies!! It's ridiculous."
Asked to respond, Diana Paul, senior public information officer for the city, provided this statement from the city:
"Today’s tour was intended to update the media on the progress of construction on the Mob Museum, which has created new jobs and is expected to generate millions in new revenue to the city when completed. The City Council has voted to support the project because there is confidence the museum will significantly help the local economy, not hurt it. The museum is expected to cost approximately $42 million to construct and is being funded through local, state and federal grants.
"Of the total amount, approximately $12.4 million is from general fund sources and $8.3 million is from matching local, state and federal grants that were awarded following the city’s financial commitment from its general fund, as well as a Redevelopment Agency funding source that can only be spent on projects located in the city’s redevelopment area. General funds were allocated for the museum in 2004, prior to the economic downturn. It’s the city’s general fund that covers the wages and benefits of the vast majority of its employees.
"The general fund is primarily supported with property and sales taxes, both of which are down. The city cannot transfer funds from other funding sources, such as grants, to support general fund allocations like wages and benefits. According to findings in a November 2009 study by Applied Analysis of Las Vegas, the Mob Museum is expected to generate a combined economic output of more than $62.3 million during construction and employ approximately 227 direct and indirect workers during construction.
"The museum will permanently employ approximately 92 people; 52 directly attributable to its operations and 40 additional jobs throughout the local economy. In addition, the project is expected to generate a total economic output of approximately $20.2 million during the same 10-year study period. Stated otherwise, for every dollar generated by the museum, a total of $1.95 will be generated throughout the regional economy.
"Especially during this economic downturn, it is important that the city support projects that create new jobs and will help bring much-needed dollars to our community."
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"According to findings in a November 2009 study by Applied Analysis of Las Vegas.......blah, blah, blah,
Isn't this the same guy that the Mayor just loved when he came before the council just a few weeks ago and told his honor everything that he wanted to hear about the private sector?
Yes it is Jeremy Aguero, Applied Analysis of Las Vegas. Imagine that!!!!
Where does the money come from to pay back the loan to the sanitation fund?
From laying people off and creating more umemployment? Dimishish services to the public, great job Mayor!!!!!
Where is that in the city charter?
LVCEA you can save your jobs by agreeing to the cuts the city has proposed. I don't know why LVCEA is so reluctant to the cuts that would save their job for now. Something is better than nothing. I have noticed that the pay increases and longevity pay is way too generous than most cities and counties. Most cities and counties only give COLA increases and longevity pay is usually cut off after the fifth year. The Mob Museum has nothing to do with pay and benefits. Usually projects of this nature are funded by another source and outlay long ago.
Well said express445. The union brought the layoffs on by themselves. They made their bed. Now sleep in it.
Nobody should lose a job, but Govt employees seem to think they have a right to a job no matter what the situation. In the private business companies hire and lay off all the time as the times and finance dictate. I do not see why working for the Govt should be any other way.
just what vegas needs-a mob museum-you got to be kidding me. good gambling made vegas, and thats what will bring it back if anyone is listening. laying anyone off for this museum is just plain stupid.
Down with the wasteful Mob Museum!! This is a travesty against all that is going on with layoffs, budget cuts etc. Give the money to the teachers..
I think we all (Nevada Voters) should remember the Mob Museum when it comes time for election of the Las Vegas City Council officials. I know I will. Oscar Goodman is determine to praise his old, and current mob friends with this Mob Museum. The Mayor has arm twisted the councilman to vote for this very bad project. Get real people, a Mob Museum! Wake up all you stupid Las Vegas voters. This Mayor has help take down this City. No state officials outside Nevada respects the Las Vegas Mayor. You all voted for him. Oscar is still taking care of the Blitzstien types and using City money to do it.
I wonder if those now working on the new Mob Museum (including all of the various supervisors and administrators) have taken the required 8 percent wage cut.
The Mob Museum will create 92 jobs when it opens. Let's remember that figure and come back six months after it opens and see how many jobs have been cut !
More promises. Springs Preserve was supposed to be the biggest attraction in years. Barely making it. Neonflopolis was also supposed to create hundreds of jobs. Yeah, Right!
The Mob Museum will suffer a similar consequence. If it was such a great idea, the private sector would have jumped on it in a heartbeat. Just another failed legacy of King Oscar.
...and if this project were coming in UNDER-budget, the Union would probably then start complaining that the project didn't cost ENOUGH because not enough Union labor was used in the construction.
Given how often the Union gives press-releases and stages irrelevant *protests* against companies that have nothing to do with their "grievances", no one can take anything they say seriously. Just look at their "SHAME ON XXX-LABOR DISPUTE" banners they place in front of businesses all over town. 9 times out of ten they're protesting some other business or division of that company in a different state that has nothing at all to do with the local union hall. And even then it's not because of the business itself, but some sub-contractor's actions. But they organize these unfounded protests to create a Chilling-Effect on the businesses they don't like.
So again, how can anyone take anything that the union says as a valid statement?
I look forward to the day when you union haters get
the service you so deserve. And believe this; It will happen to everyone. The tip of the iceberg is
all we've seen. It will get much, much worse.
Anyone been out to the DMV lately?
Mob Museums, Palatial City Hall, Showgirls, Gin, expense accounts, personal driver, all part of Oscar's autocracy.
It's good to be King!
I believe the Mayor has finally had one to many gin drinks. Does he really believe the Mob Museum is the fix for the downtown economy.... WAIT, I forgot about the crocodile farm he is now trying to get in the downtown redevelopment. I know this wasn't funded back when the economy was great. But, then again he probably doesn't want to talk about that yet. Maybe the worst Mayor of all time will hire back the 200 employees he has fired, to throw chickens at feeding time for the crocodiles. Whats next a bigfoot exhibit, maybe an alien space ship ride.
Axiom: I think the question you ask is bigger than the #2 milllon of taxpayer monies you spoke of recently.
- This story says: "The museum is expected to cost approximately $42 million to construct and is being funded through local, state and federal grants." Are these "grants" just another name for taxpayer-funded money?
- FURTHER, the article reports: "The city also says STUDIES show it will bring in about $20 million in revenue to the city's budget coffers for the next 10 years."
- SAME PROFIT CLAIM, different words: "In addition, the project is expected to generate a total economic output of approximately $20.2 million during the same 10-year study period."
- ANOTHER PROFIT CLAIM of extreme profits but this time limited to the CONSTRUCTION PERIOD and only ONE STUDY:
"According to findings in a November 2009 study by Applied Analysis of Las Vegas, the Mob Museum is expected to generate a combined economic output of more than $62.3 million during construction and employ approximately 227 direct and indirect workers during construction."
Really? Anybody in the construction business believe that?
- QUESTIONS:
1. I would like to know what rationale was used by the City of Las Vegas to support such 10-year estimates of profits that may be generated - (repeated twice, but in different language.)
2. What will "227 direct and indirect workers during construction..." DO, that will enable this project to generate a "combined economic output" of more than $62.3 million"?
Most construction projects (buildings, museums, theaters - even hotels and casinos, DO NOT generate ANY profits DURING CONSTRUCTION. The money only comes in when they open the doors - and make a profit from sales, rents, etc.
3. I would like to know what Diana Paul means by saying: "...the Mob Museum is expected to generate a combined economic output of more than $62.3 million during construction.
The article does not say how and where that (profit?) is going to come from.
Since the CONSTRUCTION COSTS of the museum are said to be $42 million, then the $63.2 million in "combined economic output" CANNOT MEAN - PROFIT - produced DURING CONSTRUCTION.
So is the $63.2 estimate supposed to mean the "combined economic output" is the result of EXPENDITURES - costs for construction? (Such as, building materials, labor, etc.)
IF SO, this would indicate that the cost of construction is actually HIGHER than $42 million.
Which is it?
FINAL COMMENT:
This story presents more questions than it answers. On the surface, it looks like a bunch of "cut and paste" quotes from various City, and contractors - who are trying to present ESTIMATED PROFITS as the City's excuse for EXPENDITURES REQUIRED.
What will 92 people DO in this museum, anyway? Is this number inflated?
What are the maintenance costs? Are they included in the estimates?
Where is the Las Vegas version of a "CBO" when we need them?
And next, the city of Henderson will follow Oscar down the "Field of Dreams and Tax Money" with their "Air and Space Museum", which will feature actual footage of the Rocket Fuel explosions in the 80's, as well as a "Toxic Waste walking trail" starting at the Timet/Tronox hexavalent chromium,titanium, and perchlorate waste ditches, past the glowing Tuscany sundivision, and ending at the abandoned Magnesium mines off of Lake Mead Parkway.
There's no doubt that this will be another winning project by the city, more successful than Lake Lost Vegas as well as the beautifully done redevelopment of downtown Henderson/North Tijuana.
How many jobs will be created in China due to the sale of Chinese made souveniers? Are these being counted?
right on gmag
I'm confused... Oscar wants to cut jobs and pay because he doesn't know how much worse the economy will get... but when it comes to his pet project he is sure that it is going to profit by huge amounts over the next ten years? How can that possibly be? Sounds fishy. Oh, maybe it is because he sits on the board of the mob museum and will be stealing money (collecting a paycheck) from there when he is done bankrupting the city.
Museums, be it a Fine Art Museum or a Mob Museum can bring in a new breed of visitors to Vegas and it is an added attraction and part of the city, Unions bring in leeches to our city who don't care for the welfare of the community as a whole unit. Unions espouse solidarity but when in times of dire need they only think of themselves.
Go Mayor, fire as many of these leeches as you possibly can!!!!!
"The museum will permanently employ approximately 92 people; 52 directly attributable to its operations and 40 additional jobs throughout the local economy."
I hope they are not union positions.
Its the kings new clothes! Neonopolis for the new millenium! The taxpayers foot the bill for another Goodman abortion!
In 5 years when they are boarding it up. The new council members will blame Oscar like Obama blames Bush.
i really like how most of you have no idea how grants really work. When the city is awarded a grant weather it be given by the state or the federal government it must be used for the purpose it is awarded. if they use the money for something not specified by the guidelines then they loose it. the majority of this project is funded by federal money . so yes i would rather they build a museum something vegas desperately needs and create jobs then send the money back. they,re hands are tied and just so everyone knows we have some of the hightest paid city employees in the country, one of our firemen has a salary of over 600 thousand dollars for christ sake you can look that up if you dont believe me.