Goodman, Culinary clash over tourism tax district

A 5.5-acre block of land in downtown Las Vegas got tempers flaring today as the City Council debated, and ultimately endorsed, establishing a special tax district that critics say would hurt school funding.

The discussion came with audience chanting, people talking over each other, references to classic literature and appeals to motherly wisdom.

City officials want to establish a tourism improvement district on land surrounding the old federal courthouse, which is being turned into the Mob Museum. The district would divert sales tax money from new businesses on the property to pay for infrastructure improvements — new sidewalks, a plaza and a public parking garage.

But critics — in this case, roughly two dozen Culinary union members once again going after a downtown project — said the city would hurt local schools while helping a wealthy development company.

City leaders responded that the land isn’t generating any tax revenue now and that the revenue generated would exceed projected new costs to the school district.

D. Taylor, secretary-treasurer of Culinary Local 226, wasn’t buying it.

“I feel like I’m in Never-Never Land here,” he said. “This is like Robin Hood in reverse. You’re taking from the masses to give to the wealthy.

“Today you have the opportunity to vote for children in schools, or you can vote for the benefit of large, multibillion(-dollar) out-of-state developers. As my mother once said, it’s not what you say, it’s what you do.”

Council members voted to approve the district and send it on to the Nevada Commission on Tourism and the office of Gov. Jim Gibbons. Both the commission and the governor must approve the district before it can be established. Those hearings have not been scheduled.

Mayor Oscar Goodman reiterated that the land is city-owned and tax-exempt.

“Right now, zero taxes, zero money is coming from this property, so don’t say we’re taking money away from the schools,” Goodman said. “We’re trying to get a project where we can get money to the school district.”

Taylor’s comments went over his allotted time to speak, and when time expired, Goodman — unlike with other speakers today — tried to strictly enforce the time limit.

“Let him talk! Let him talk!” chanted union members as Goodman and Taylor argued over whether he could finish his remarks.

Finally it was agreed that Taylor could have another two minutes if one of the other union members gave up a chance to comment.

“They’ve been very patient,” Taylor said. “They’re taxpayers and I’m sorry you don’t feel like you should listen to them.”

“Wait a second,” interrupted Goodman. “I said I would listen to everybody. I gave them two minutes, I gave you three. You’re the one taking their time away from being able to talk — not me, buddy.”

According to an analysis prepared for the city, development on the post office site, including retail, restaurants and office space, would generate $26 million in additional tax revenue annually, from which $3 million a year would be kept for 20 years to pay for the public improvements.

From the new revenue, $1.5 million would be available for education, the breakdown states. The school district would incur an estimated $825,000 cost increase because of new people moving to the area to take jobs at the development, although city officials said that projection could be high, since rising unemployment could mean that available workers are already here.

That would leave almost $700,000 in new school revenue, said city officials, some of whom appeared exasperated at being criticized for pushing projects downtown.

“I can’t understand why people continue to say that this council is trying to rape the school district,” said Mayor Pro Tem Gary Reese. “I would never do anything to take away from the schools.

“I can’t say this is going to be built. If it is, the school system is going to benefit.”

The project around the Mob Museum, formally known as the Las Vegas Museum of Organized Crime and Law Enforcement, is tied to the redevelopment of the Lady Luck casino across the street. Los Angeles-based CIM Group is the developer on both projects.

CIM must invest at least $100 million in the now-shuttered Lady Luck in order to get access to the land around the museum, according to its agreement with the city.

Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.