LVCVA: Not demolishing Riviera could cost area economy $15.8 billion over 30 years
May 10, 2016 - 3:49 pm

Workers from All-Star Fence assemble the perimeter surrounding the iconic Riviera Hotel & Casino in Las Vegas, which closed on Monday, May 4, 2015 after 60 years. (Mark Damon/Las Vegas News Bureau)

The sign at the shuttered Riviera hotel-casino is seen on the Las Vegas Strip on Tuesday, March 29, 2016. The casino, once demolished, will make way for an expansion of the Las Vegas Convention Center. Daniel Clark/Las Vegas Review-Journal Follow @DanJClarkPhoto

The Las Vegas Convention and Visitors Authority board of directors agreed to a plan on Tuesday, April 12, 2016, which will bring down the Riviera's two hotel towers in implosions this summer. (Brett Le Blanc/Las Vegas Review-Journal Follow @bleblancphoto)

The Las Vegas Convention and Visitors Authority board of directors agreed to a plan on Tuesday, April 12, 2016, which will bring down the Riviera's two hotel towers in implosions this summer. (Brett Le Blanc/Las Vegas Review-Journal Follow @bleblancphoto)

Advertising for the expansion of the Las Vegas Convention Center is seen outside the site of the shuttered Riviera hotel-casino on the Las Vegas Strip on Tuesday, March 29, 2016. Daniel Clark/Las Vegas Review-Journal Follow @DanJClarkPhoto

Chains and barbed wire block a hole in the fence at the site of the shuttered Riviera hotel-casino on the Las Vegas Strip on Tuesday, March 29, 2016. The casino, once demolished, will make way for an expansion of the Las Vegas Convention Center. Daniel Clark/Las Vegas Review-Journal Follow @DanJClarkPhoto

The box office at the Riviera, where audiences have been purchasing tickets to the popular "Crazy Girls" show, Sunday, April 26, 2015. (Kimberly De La Cruz/Las Vegas Review-Journal)

People carry items during the liquidation sale at the closed Riviera hotel-casino, 2901 South Las Vegas Boulevard Wednesday, May 13, 2015. (Jeff Scheid/Las Vegas Review-Journal) Follow Jeff Scheid on Twitter @jlscheid
While blocking the demolition of the shuttered Riviera is a long shot at best, the Las Vegas Convention and Visitors Authority board of directors is taking no chances.
Board members on Tuesday unanimously approved an economic impact analysis that says it would cost Southern Nevada $15.8 billion in economic output if the demolition is blocked.
An initiative petition filed by Henderson resident Kelden Engel seeking approval of an ordinance that would “legally prevent the demolition of any structures that are currently or have ever been situated on land denoted by Clark County Assessor’s Parcel Number 162-09-703-001.”
That legal description is the land that houses the Riviera, acquired by the authority more than a year ago for a Las Vegas Convention Center expansion project.
Work crews already have begun demolishing the low-rise buildings on the site, but two towers are targeted for implosions in late June and late August.
The authority indicated it has received no indication that Engel would attempt to legally block the demolition pending the outcome of an initiative.
The economic impact analysis information will be posted on the Clark County elections website.
The analysis lists a first-year financial hit of $213.8 million to the authority if demolition efforts are stopped. That includes the $186 million purchase price of the property, a $4.2 million demobilization cost for breaking the demolition contract and $16.5 million in lost facility-use revenue. Officials said the authority already has committed to CES in January and the ConExpo-Con/Ag international construction equipment trade show in March.
The 30-year analysis claims a potential loss of $495 million in facility use rentals per year.
Clark County Registrar Joe Gloria said he issued notice of an intent to circulate a petition in April.
An initiative petition requires signatures from 15 percent of the number of people who voted in the 2014 general election. Gloria said for the petition to qualify for the November ballot, about 51,000 signatures would be required to be submitted by July 1.
Engel could not be reached Tuesday on the status of the petition drive or of any further plans to block the demolition.
The authority acquired the 60-year-old, 23-story property in February 2015 for $191 million, which included $8.5 million in related acquisition costs.
Since buying the property, the authority’s owner representative, Cordell Corp., has conducted a detailed investigation of hazardous materials on the site and how to remove them before imploding the two towers.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta.
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