Use of luxury suite on agenda for Las Vegas Stadium Authority

The Las Vegas Stadium Authority may vote Thursday on an agreement that would give authority members access to luxury box seats in the Las Vegas stadium.

An authority spokesman said use of the suite would be for “economic and community development purposes.” A similar agreement in Minnesota for U.S. Bank Stadium resulted in two officials with the Minnesota Sports Facilities Authority resigning after a state audit found most of the seats were being used by family and friends of authority members.

The new section of the lease agreement with the Oakland Raiders says that once the authority has contributed the public’s $750 million share of the stadium costs, it will be given free access to one suite designated by the Raiders, an unspecified number of tickets to all games, excluding the Super Bowl or any championship game in which the Raiders are involved, and “a number of complimentary parking passes.”

The section was unveiled Monday when the agenda for Thursday’s meeting was posted.

Jeremy Aguero, a principal for Las Vegas-based Applied Analysis, which serves as staff to the authority, said the Raiders offered the suite for marketing purposes, a common arrangement between a team and a board with stadium oversight.

Leveraging the stadium

“The language was added to the lease agreement because the Raiders and the authority agreed that having a suite that could be used for economic and community development purposes would be a positive way to leverage the stadium as a community asset,” Aguero said in an email explaining the new section of the lease agreement.

“The Raiders did not need to provide such a suite, but generously did,” he said. “The authority will ultimately need to set a policy for the use of the suite; however, it is not provided for nor intended to be a benefit or perk for authority board members themselves.”

That’s how a similar agreement between the Minnesota Vikings and the Minnesota Sports Facilities Authority was billed for two suites at U.S. Bank Stadium in Minneapolis where the NFL’s Super Bowl game was played last month.

Family and friends used suites

A 26-page audit report from the Minnesota Office of the Legislative Auditor released in February 2017 found that of the 352 tickets used by the authority for U.S. Bank Stadium’s Norseman Suite, 45 percent were used by family and friends, 29 percent by marketing guests and 16 percent by the authority and its staff. Auditors questioned the purpose of the remaining 10 percent of tickets used.

The audit determined that the authority’s commissioners and executive director didn’t break any laws when they gave free tickets to family members and friends, but they did “violate a core ethical principle.”

The audit also found that the authority failed to comply with state law by not maintaining a record of who received tickets to its stadium suites adding that state law does allow the authority to keep certain marketing information private after it is created.

About a week after the audit was made public, authority chairwoman Michele Kelm-Helgen and executive director Ted Mondale announced plans to resign from their positions. The St. Paul Pioneer Press reported that Kelm-Helgen apologized for the suite issue, but defended the authority, saying giving tickets to friends and family was standard practice for such stadiums.

The audit recommended that the Minnesota Legislature enact laws to control the authority’s use of complimentary tickets to events at U.S. Bank Stadium, to allow one or both of the authority’s suites to be used for nonprofit charitable purposes and to control the use of complimentary tickets at all sports and entertainment facilities built with public money.

‘A form of gratuity’

An attorney who has represented Major League Baseball teams in a variety of sports and recreational cases suggested that the Las Vegas Stadium Authority outline some of the policies involving the use of the stadium suite before approving the lease agreement.

“Because it is a controversial relocation — you know that all eyes are going to be on it — why not address it thoroughly and come up with parameters, guidelines and boundaries about how those boxes are to be used?” said Carla Varriale of the New York-based Havkins Rosenfeld Ritzert & Varriale law firm.

“You want to make sure there’s going to be a value there for the taxpayer,” Varriale said in a telephone interview. “If the authority or the state or local government is using it for true economic development purposes, including what the purposes are and how they’re going to be defined and who decides, is a benefit to the taxpayer as well. Where you get in trouble, as was the case in Minnesota, is when it becomes a form of gratuity for the friends of the politicians. It’s got to be a true economic development project.”

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

ad-high_impact_4
Raiders Videos
Vegas Nation: Off season update
Ed Graney, Bryan Salmond, Michael Gehlken and Gilbert Manzano sit down and discuss the latest news around the Raiders.
Las Vegas Morning Update — Sunday, July 8
The Raiders team is secretive about tickets, and the new Miss Nevada is Alexis Hilts.
Vegas Nation Stadium Show: Analysis of Raiders Stadium Construction Site
Review-Journal sports reporter Ed Graney and business reporter Rick Velotta go over the recent updates on the Raiders stadium and owner Mark Davis serving food to construction workers.
Las Vegas Morning Update - Friday, June 29, 2018
The Resort on Mount Charleston has sold, Raiders owner Mark Davis throws a barbecue, and a Las Vegas woman found dead was a police informant.
Vegas Nation: Gruden Gives "Final Exams"
Vegas Nation host Bryan Salmond and Raiders beat writer Michael Gehlken go over the Raiders improvement throughout training and how Gruden has been pushing the Raiders.
Vegas Nation: Raiders Deciding On Opening Day Kicker
Raiders beat reporter Michael Gehlken and Review-Journal sports columnist Ed Graney go over he Raiders choosing an opening day kicker and Doug Martin's potential.
Vegas Nation: Mandatory Mini Camp
Vegas Nation host Bryan Salmond, Raiders beat writer Micheal Gehlken and Review-Journal sports writer Ed Graney go over day one of the Raiders mini camp.
Vegas Nation: Derrick Johnson standing out at OTAs
Vegas Nation host Bryan Salmond and Raiders beat writer Michael Gehlken go over the Raiders OTAs and how the team is adjusting to new coaching style of head coach Jon Gruden.
Vegas Nation: Week Two Of OTA's
Vegas Nation host Bryan Salmond and Raiders beat writer Michael Gehlken go over the start of week two of the Raiders OTA's.
Vegas Nation: NFL Owners Meeting Day 2
Vegas Nation host Bryan Salmond and Review-Journal sports writer Gilbert Manzano go over the NFL owners meeting.
Las Vegas Stadium construction site drone footage
The Raiders set up a drone at the Las Vegas Stadium construction site on May 20, 2018.
Las Vegas Stadium Milestones
Las Vegas Stadium Milestones as of May 16, 2018.
Vegas Nation: NFL Owners Meeting Day 1
Vegas Nation host Bryan Salmond and Review-Journal sports writer Gilbert Manzano go over the NFL owners meeting.
Vegas Nation: Raiders Participate In First Day Of Practice
Vegas Nation host Bryan Salmond and Raiders beat writer Michael Gehlken go over the Raiders first day of practice.
Vegas Nation: Raiders Minicamp
Raiders beat writer Michael Gehlken goes over the Raiders minicamp and questions surrounding the Raiders picking defensive lineman Maurice Hurst from Michigan.
P.J. Hall, Maurice Hurst and Jon Gruden Talk About Mini Camp
P.J. Hall, Maurice Hurst and Jon Gruden go over the Raiders Mini camp.
Reggie McKenzie On Final Day Of NFL Draft
Raiders general manager Reggie McKenzie talks about the Raiders final draft picks.
Vegas Nation: Raiders Final Draft Picks
Vegas Nation host Bryan Salmond, Raiders beat writer Michael Gehlken and Review-Journal reporter Gilbert Manzano go over the last day of the draft pick for the Raiders.
Gruden On Day Two Of Nfl Draft Picks
Raiders head coach Jon Gruden discusses the teams second day draft picks.
Raiders trade again, draft DT P.J. Hall and OT Brandon Parker
Raiders trade again and draft DT P.J. Hall and OT Brandon Parker. The team moved back again Friday, this time exchanging the No. 41 overall pick for the No. 57 selection. It then selected former Sam Houston State defensive tackle P.J. Hall. The Raiders parted with No. 75, trading up 10 spots to select former North Carolina A&T offensive tackle Brandon Parker.
Gruden On Bryant Joining Raiders, Bryant On What He Has Left To Prove
Raiders head coach Jon Gruden talks about what Bryant will bring to the Raiders and Bryant talks about what he has left to prove.
Gruden, Miller On First Round Pick
Raiders head coach Jon Gruden and first round pick Kolton Miller talk about the NFL draft first round pick for the Raiders.
Las Vegas Raiders Stadium can help economic boom, expert says
Study after study has concluded that stadiums aren’t effective economic development drivers. But a leading urban growth researcher says Orlando and Las Vegas are exceptions because of the strength of their regions’ tourism economies. The Raiders are building a 65,000-seat, $1.8 billion indoor stadium at Interstate 15 and Russell Road using $750 million of public money authorized by the Nevada Legislature. Las Vegas has a leg up on many cities, because it has an airport at which business people can catch a nonstop flight to virtually any domestic destination. Panelist Cathy Tull, chief marketing officer of the Las Vegas Convention and Visitors Authority, said the presence of out-of-town media for playoff games featuring the Vegas Golden Knights has given the city media mentions that money can’t buy. Another issue receiving the panel’s attention is the need for mass transit with all the teams, venues and anticipated visitation they will generate. Panelists also discussed the prospect of attracting big events like the Super Bowl, the NFL draft and NCAA tournaments.
Reggie Mckenzie On Raiders First Draft Pick
Raiders general manager Reggie Mckenzie on Raiders first draft pick.
Vegas Nation: First Round NFL Draft Pick
Vegas Nation host Bryan Salmond, Review-Journal writer Gilbert Manzano and Raiders beat writer Michael Gelhken go over the first round of the NFL draft picks and the Raiders choices.
Business
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)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like