Las Vegas convention authority sees 6.7 percent rise in budget

A spike in revenue from room tax receipts and facility use rentals will bump the Las Vegas Convention and Visitors Authority’s budget by 6.7 percent in the next fiscal year.

The authority’s board, in a special meeting, on Thursday unanimously approved a $248.4 million operating budget.

An increase in visitation and the gradual upturn in the average daily room rate has led to a projection that room tax revenue would increase by 3 percent in the next year.

Room-tax revenue provides the largest portion of the LVCVA’s budget.

In addition to higher room-tax revenue, the authority is anticipating a 12 percent increase in facility rental fees, thanks to a two-tiered rate increase approved by the board in 2015.

Under the planned rate increase, rental fees will go up 13.8 percent at the Las Vegas Convention Center beginning July 1 followed by a 6 percent increase two years after that.

The rate of 29 cents per net square foot, in effect since Feb. 14, 2006, would be increased to 33 cents per square foot on July 1, and to 35 cents per square foot on July 1, 2018. Rates also would increase from the current 14.5 cents per net square foot on move-in and move-out days to 16.5 cents per square foot on July 1 and 17.5 cents on July 1, 2018.

The authority expects the increases would increase revenue by $700,000 in fiscal year 2018, $1.3 million by 2019, $3.5 million by 2020, $3.9 million by 2021, $4.4 million by 2022 and $5.2 million by 2023, much of which would be dedicated to a $1.4 billion project to upgrade and expand the Convention Center.

But the big increase is in room-tax revenue. In the 2014-15 fiscal year, room-tax revenue totaled $239.3 million. At the end of the current fiscal year, June 30, revenue is projected to hit $245.1 million. The authority’s financial experts are conservatively estimating receiving $267.2 million by the end of the 2016-17 fiscal year.

Southern Nevada is ahead of 2015’s visitation pace by 3.5 percent after the first quarter of 2016 and the average daily room rate is up 4 percent over the first quarter of last year.

The authority doesn’t keep all the room-tax revenue collected with some of it portioned out to education, transportation, parks and state tourism initiatives. This year, $26.9 million is destined for community support.

The LVCVA’s operating budget doesn’t include payments to capital expense projects and debt service on past bond issues. In the budget approved by the board, the capital fund spend is expected to be $115.4 million for the year and $134.5 million will be spent retiring debt.

Other highlights from the budget:

The LVCVA will spend $96.5 million for advertising and $45.2 million for marketing the destination in the coming year. The authority’s research shows that keeping the city’s name before the public is key to driving additional visitation.

The special events budget is listed at $14.3 million, including $11.2 million targeted to Las Vegas Events, the separate nonprofit organization that manages events on behalf of the LVCVA. The budget has $3.5 million targeted for the National Finals Rodeo in December and $1 million for the U.S. Bowling Conference women’s tournament. Other big spends are $625,000 for New Year’s Eve and $500,000 each for the Mountain West and Pac-12 basketball tournaments.

The authority is required to disclose planned lobbying expenditures for the upcoming legislative session. The LVCVA has listed expenses of $177,000, which includes $120,000 in compensation to lobbyists.

The budget has $23 million in contractual obligations for 2016-17. The largest contract, by far, belongs to R&R Partners, at $15.5 million for advertising and marketing communications. It runs through June 2021. Another big contract is with Cordell Corp., the Las Vegas Convention Center project representative. The contract runs through February and is budgeted for $862,000. Terracon Consultants has a $796,944 contract through December for testing and hazardous materials abatement for the demolition of the Riviera site and KGA Architecture is on contract through June 2017 for $475,000 for Riviera site demolition and site improvements.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta

ad-high_impact_4
Business
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like