Another Stadium Backer- Wynn

[rebelbuck]

Looks like Steve Wynn is backing this stadium plan along with Adelson/Sands. More heavy hitters involved the better right.

http://www.reviewjournal.com/opinio...-wynn-says-las-vegas-should-get-ready-raiders

 

[Rebel1986]

It is looking more and more like it is LVCVA and MGM attempting to keep control of the money and spend it how they wish instead of how those who actually pay the tax want it spent. The expansion of the convention center is a good thing, but it is very narrow minded by their looking at this as the exclusive way to spend the room tax money set aside for projects located within the LV Blvd corridor. One of the arguments is that the location of the proposed stadium, due to its location, is not a benefit to the LV Blvd corridor area, while the convention center is a benefit to all of the casinos that are located within the corridor.

I see several problems with the believe that the convention center expansion is the only way to spend the money. Many of the casinos do not rely on the convention business due to numerous reasons that include convention attendance not being part of their marketing plan, upper level casinos/rooms that do not go after the convention business customer base, already having their own convention space, Hotel/Casinos that are smaller or at the lower budget end, etc. Those casinos do not see nearly the benefits from convention business that the middle level casinos will see. The MGM receives a disproportionate financial advantage that behooves them to back the LVCVA (Sheldon is looking out for himself, but that is also true with the MGM - question is which one also has a benefit to UNLV?). The large conventions at the LVCVA have rooms booked in blocks from many of the MGM casinos in a much higher proportion than those casinos not tied into the convention business, higher end places, and those with their own convention facilities.

I also noted that the point has been brought up on many occasions that the convention center is located within the LV Blvd area and due to the location has a bigger impact. This is another point that just is not true. The closest portion of the convention center is currently located 2.750 feet from LV Blvd and the furthest point of the center is located 6,000 feet from LV Blvd. The proposed football stadium varies in distance from 3,000'-4,500' from LV Blvd. It should be noted that the proposed stadium is just as close to LV Blvd as the convention center.

Between Sheldon and Wynn is a large chunk of the tax payments that fund the LVCVA. This makes me wonder how many other locations within LV Blvd also see just as much of a benefit to get a pro team/stadium into LV as more convention space. The LVCVA has their own agenda that is to continue to grow their employee base and power based whether it is good for those who pay the tax or not in partnership with the MGM corp (who are in deep financial difficulties) who both have their own agendas in regards to where to spend the money.

Not saying to ignore an expansion and makeover, just saying consider a split of a portion of the money for the stadium also.

I just hope to see a couple of more heavy hitters or a group of the smaller hotel/casinos come on board and back the stadium could make a big difference. It would also help if companies like Station Casino, Boyd Gaming, etc get involved.

 

[bcvegaspt]

I'm really hoping these billionaires aren't just talking a big game and then going to look at the public to come up with the other $700+ million for the project. I'm not suggesting where they should spend their money but if they are going to meet with Kronke and Jerry Jones but not put any financing behind it (more than the $150 million from Adelson) they have to know its going to fail.

 

[Rebel1986]

If the stadium ultimately ends up 80%+ financed by private developers, why would they have any reason to tie in with UNLV or anything else to do with the public. A lot of people are saying no public money should be involved, but they still think UNLV would be able to use the stadium? No public funds means it is not likely UNLV would be in the stadium! In all fairness, the state of Nevada owes UNLV at least a few billion to make up for the years of short falls in funding of UNLV compared to unr. Time to pony up!

 

[RebelinWA]

I agree that there should be at least some public money, but 750 is too much. Maybe I could swallow putting down 300m publically. I still think this can be done without public money. If they believe in the cause, then put their wallet where their mouthes are.

 

[Rebel1986]

You want a project that is built with 80% private funding, but still be a public facility. If they are going to pay that high of a percentage of the cost, why would they allow the public to have any involvement in the project (including UNLV).

The involvement of government funding in any project immediately increases the overall project cost by 15-20% or more. (While anything is an estimate, as of about 10 years ago, the average private school building constructed in Las Vegas was roughly half the cost per square foot as that for a public school building which came from when my dad was on the CCSD bond oversight committee).

These rules that increase the cost include bidding requirements, prevailing wage rules (these wages are significantly higher that union wages), levels of bureaucracy in the design and inspection phases for government projects, and a minimum percentage of all government projects must also include a percentage of the contracts go to certified minority owned contractors as well as any of the suppliers also being required to meet these same standards. Not only does the cost tend to be pushed up with the bidding requirements, but there is also a large increase in cost due to all of the paperwork required to certify all of the rules have been observed. The governmental projects also have restrictions that limit the suppliers of materials, as well as many other rules for public works projects that do not exist for the private developers.

Effectively your belief that 300 million is a fair portion of the overall cost of a 1.4 billion dollar project means in reality the public funding would be almost non-existent when including figuring in the increased cost to build a government funded project over a privately funded project.

Currently the overall cost is estimated at 1.4 billion with 650 million coming from private sources, and 750 million from public sources. Anything less than 30% of the overall cost would not make any sense at all in regards to public funding which would be over 400 million. Considering the first request was for 750 million, I would not be surprised if a second offer came back requesting more in the range of 400-600 million from public funds. If enough people get on board and they are willing to negotiate on both sides, I could see a lower number that may be acceptable to all sides (MGM being the exception - I do not believe they would agree to anything above zero cash)

So the answer is they can build the project without government funding, but then there would be no incentive to include UNLV in the equation!

 

[RebelinWA]

I don't expect it to end up being a public facility. They never really addressed who would be in charge of the thing or where the money would go. I seriously doubt that Adelson will throw 150m at a public project out of the kindness of his heart. This is the same guy that gets strange with the change whenever he valets.

 

[rebelbuck]

I get the feeling Adelson/Wynn are going to see what the response is and if they see the public money being the big hurdle (as it is already showing to be) then they slowly up what they will contribute until everyone is close to happy with the breakdown of costs.

Again a lot of people getting fired up about money that was going to be used in one way or the other, Convention or Stadium and doesn't affect most people (rooms/cabs taxes). I just want the thing done. If it costs me and extra $25 a year in some tax I dont really notice to begin with , great lets do it.

 

[Rebel1986]

Just let Northern Nevada fund it to make up for the billions of dollars that has been funneled from Southern Nevada into unr over the last 30 years. Since they always talk about how whenever UNLV gets something new they should also get something at unr, time for us to get our fair share!

P.S. I agree with what you are saying rebelbuck. I see there being adjustments in the final amount of private funds to be spent, but it would help if Station Casinos, Boyd gaming, etc also back the project to show it has a large portion of the industry in support.

As for Adelson being cheap, that is very true. He is just much more open about it while the MGM corporation is full of idiots that paid way too much for everything and now will do anything for a buck. Adelson may be cheap, but he is not in the same league as MGM. Who is the first to look at charging for public parking?

 

[Sam-I-am]

I enjoy the discussion in this thread but LVCVA money is "public" money to me since it was established by the Legislature and is supported by taxes created by the Legislature. The stadium is exactly what the LVCVA's money & resources should go to.

Also, if a stadium for UNLV to bring in visitors and conventions isn't considered to be a priority of the Convention and Visitors Authority like they are in every other large city in America, then we need to get rid of the Board of Directors and replace them with people who know what they're doing.

 

[mvvsmith]

Las Vegas has always seemed like a cycle town, build rooms, then build more convention space and expand the airport. The recession broke that cycle, now it should continue with expand the LVCC and build the stadium, even if it means hiking the room tax ( doesn't effect the residents). Now in the Wynn project and the campus projects like the Hospitality Center, the Gateway, Research Campus and the now housing project where old College Park Apts.used to stand ( the location of my first apt. after I graduated from Clark in '68) and tons of other residential and commercial projects. Your looking at thousands of jobs, billions of dollars spent by both companies state, workers and future employees. That's how this has to be looked at, an investment in the future of the city. I don't think a few hundred million is that significant enough in the long term to warrant NOT doing both the Stadium and the District (LVCC project) concurrently. It is in my opinion the crucial next step for Las Vegas and the most important step in it's history and will insure future investment and the beginning of the next cycle. I may live in Northern Arizona now, but after 55 years of living in LV, I will always be and Las Vegas and a stalwart Rebel fan and supporter.

 

[mvvsmith]

Las Vegas has always seemed like a cycle town, build rooms, then build more convention space and expand the airport. The recession broke that cycle, now it should continue with expand the LVCC and build the stadium, even if it means hiking the room tax ( doesn't effect the residents). Now in the Wynn project and the campus projects like the Hospitality Center, the Gateway, Research Campus and the now housing project where old College Park Apts.used to stand ( the location of my first apt. after I graduated from Clark in '68) and tons of other residential and commercial projects. Your looking at thousands of jobs, billions of dollars spent by both companies, the state, workers and future employees, sales tax revenue increase alone will be enormous add in legalizes marijuana in help schools, teachers and support staff and maybe the state could finally reverse it' finnancial status.That's how this has to be looked at, an investment in the future of the city AND the state. I don't think a few hundred million is that significant enough in the long term to warrant NOT doing both the Stadium and the District (LVCC project) concurrently. It is in my opinion the crucial next step for Las Vegas and the most important step in it's history and will insure future investment and the beginning of the next cycle. I may live in Northern Arizona now, but after 55 years of living in LV, I will always be and Las Vegas and a stalwart Rebel fan and supporter.