Procedures for building Global Business District pass hurdle

A newly formed committee of the Las Vegas Convention and Visitors Authority on Friday recommended approval of a simple charter setting the ground rules for construction of the $2.3 billion Global Business District project.

The six-member Las Vegas Global Business District committee also recommended approval of two rate increases to rent space at the Las Vegas Convention Center that would take effect July 1, 2016, and July 1, 2018, and raise additional money for the project.

The committee, formed by the authority board at its March meeting, will provide recommendations to the board on policy, funding and hiring decisions for the project, considered one of the most important public programs in Southern Nevada’s future.

The project includes an overhaul of the Las Vegas Convention Center, construction of a new 750,000-square-foot convention hall, a general assembly facility, a World Trade Center and design and construction of a transportation system.

Construction is planned on the site of the Riviera, which the authority purchased for $182.5 million in a high-profile transaction in February, and on a parking lot the authority owns at Paradise Road and Convention Center Drive.

In addition to making decisions on the project transparent, the committee is charged with overseeing the contract selection process and making sure the facility isn’t all design and no function.

“Sometimes, contractors tend to make things prettier than they are useful,” said committee member Tom Collins, a Clark County commissioner.

Authority legal counsel Luke Puschnig said the three-page charter was designed to be simple and flexible to enable members to consider a wide variety of policy decisions and to maintain transparency with the public.

The committee is to be comprised of at least two private industry members and two public officials, but initially, it includes three of each — Mandalay Bay executive Chuck Bowling as chairman, Caesars Entertainment executive Tom Jenkin and Las Vegas Metro Chamber of Commerce CEO Kristin McMillan as well as Las Vegas Councilman Steve Ross, North Las Vegas Mayor John Lee and Collins.

After recommending approval of the charter, the board undertook the task that led to the committee’s formation in the first place — making a recommendation on the hiring of an owner representative to manage the day-to-day operations of building the district.

The committee is recommending hiring California-based Cordell Corp. with a $270,000 contract for the six-month predesign phase of the project.

Cordell is basically a two-person operation, and project manager Terry Miller told the committee that he and partner Don Webb would hire personnel based on the needs of the job.

Committee members made it clear that they expect Southern Nevada contractors to get top consideration for architecture, design and construction jobs.

Cordell has provided project management work on convention centers, airports, sports stadiums and arena and road projects across the country.

Miller said if Cordell is selected for the contract, he and Webb might move the company’s corporate headquarters to Las Vegas since the project is expected to take up to 10 years to complete.

While critics have said management of the project is top-heavy with administrators, authority CEO Rossi Ralenkotter said every decision-maker will have different responsibilities on the project.

Cordell would have responsibilities for clearing the Riviera property as soon as possible and for new construction. Randall Walker of RHWalker Consulting, who reports to Terry Jicinsky, senior vice president of operations, will provide information on refurbishing existing facilities at the Convention Center. Ralenkotter, the committee and the authority board will ride herd over the entire project.

Committee members also recommended a 13.8 percent increase in convention center facility rates, followed by a 6 percent increase two years after that.

Under the recommended increase, the rate of 29 cents per net square foot, in effect since Feb. 14, 2006, would be increased to 33 cents per square foot July 1, 2016, and to 35 cents per square foot 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 July 1, 2016, and 17.5 cents July 1, 2018.

The authority expects the changes 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 the district project.

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