What’s your economic vision for Las Vegas? Grant offers $800K no-strings-attached prize

By Conor Shine

Wednesday, Aug. 7, 2013 | 2:33 p.m.

Las Vegas accepted a $1 million federal grant Wednesday to conduct a competition to develop long-term economic plans for the city.

But the ultimate winner of this no-strings-attached award can spend the money any way it wants, even on a sports car or trip to the Bahamas.

City officials, of course, hope the eventual winner of the Strong Cities, Strong Communities grant will use the money in a more constructive way that enhances Las Vegas, but they’ll have no way to ensure that.

The new program funded by the federal Economic Development Administration is taking a novel approach to generating innovative ideas for local economies.

Instead of the city paying an outside firm to come up with a report on generating economic growth, the city will use the grant money as a prize, with the best idea receiving $800,000. And while one winning team will walk away with the huge prize free and clear, the city will be required to spend $250,000 from its general fund budget for infrastructure and planning needed for the winning proposal.

The hope is the large prize will draw diverse new ideas and economic plans for Las Vegas, all of which would belong to the city — even those that don’t win any prizes.

According to a presentation Wednesday to the City Council, the program will “strengthen communities by enhancing capacity of local governments” and encourage new “economic vision and strategies” that will lead to job growth and business creation.

This unique program — based on successful models in the private sector that use large cash prizes to stimulate competition and innovation — and its no-strings-attached award worried council members.

“I was kind of shocked at the way the money’s spent. Basically what we’re doing is accepting $1 million to give out $900,000 of prizes,” Councilman Stavros Anthony said. “And what’s even more shocking is the $800,000 that we give to somebody, they could go down to San Diego and buy a beach house with it.”

The seeming boondoggle of a grant gave council members a chance to take a few shots at the federal government’s spending habits, but after half an hour of discussion most of the council members came to a shared conclusion — if the money doesn’t go to Las Vegas, it will just get spent somewhere else. They voted to accept the grant 5 to 2, with Anthony and Councilman Bob Beers, who described the program’s guidelines as “vague and amorphous,” in opposition.

Councilman Bob Coffin said he thought the investment would be paid back in the multitude of new and creative ideas the city will get from the competitors.

“I think the fact that we own all the plans, we in essence own all the ideas that are submitted ... they’re idea people, we pay people for ideas and we will get all their ideas.” Coffin said. “I do not see a downside to this. At first glance it looked like it was some free money we should turn back, but trust me some other city wants this real bad and would be willing to take it.”

Las Vegas was one of three cities — along with Greensboro, N.C., and Hartford, Conn. — chosen in September 2012 to receive the award.

With the council’s approval, the city will have 18 months to administer the program. At this point, no guidelines or criteria for submissions have been established, except that proposals must be based around one of four subjects — Cashman Field, the medical district, business parks or redevelopment projects.

About $100,000 of the $1 million grant will be used to hire a firm to advertise the program, help develop rules for submission and select a committee that will judge entries.

The contest will take place in two phases — all submissions will be judged in the first round, with first-, second- and third-place winners receiving prizes of $60,000, $30,000 and $10,000, respectively.

The second round will include the three finalists, who will be allowed to refine their pitches before the ultimate decision. One winner will receive the $800,000 grand prize.