LV Marathon running in debt

The owner of the Las Vegas Marathon owes hundreds of thousands of dollars to local businesses and organizations, which could lead to trouble getting the 2008 event to the starting line.

Devine Racing is in arrears to at least a dozen vendors for the 2007 race, and the company still has not made good on commitments to several vendors from 2006.

If Devine cannot meet the commitments, the failure could affect the company's ability to get permits for the 2008 race, set for Dec. 7.

Col. Chris Perry, head of the Nevada Highway Patrol, seemed disturbed last week upon learning that the patrol was still due all of its 2007 contract with Devine: $9,678.38.

Perry said Devine had promised payment by April 22, but it never arrived, and Perry was preparing to draft a letter of demand for payment. But two days after Perry spoke with the Review-Journal, his office was paid in full.

Regardless, Perry said, the Highway Patrol's policy with the company has changed, effective immediately.

"They've had a good track record with us," said Perry, noting Devine made its payments in reasonable time in 2005 and 2006. "This is the first time it's been like this, but it's gonna be the only time. They'll get nothing for December 2008 -- no permits from us -- unless we get the full amount up front."

The Highway Patrol's total was among more than $100,000 in payments due provided to the R-J by several vendors. That figures escalates rapidly with companies that were unwilling to go on the record, and several more vendors who could not be reached for comment.

Devine Racing Chief Executive Officer Chris Devine, in a statement released Saturday, confirmed his company's financial problems. He said that the company suffered a significant loss on the 2007 race, its third running since Devine bought the race in 2005 from Las Vegan Al Boka.

But Devine said that the company is "currently executing the sale of two significant assets, which are expected to close by mid-June" and that the sales will be used to address the company's issues with the Las Vegas Marathon.

The company also owns the Los Angeles and Salt Lake marathons and the Chicago Half Marathon, and Devine has ownership interest in several radio companies.

Denise Miller, special events coordinator for A Company Inc., said her company is still due the full amount of its 2007 contract. For competitive reasons, Miller would not reveal the amount, but she said her company provided 389 standard portable toilets, two presidential trailer units and three units that complied with the Americans with Disabilities Act.

"We've not been paid a dime," said Miller, who said she last spoke with Devine Racing on April 10. "I told the woman who answered who I was with, and she said they'd call back within an hour. I left a voice message (later that day) and followed up for a few days. ... We never heard a word."

What made the situation more frustrating for Miller was finding out long after the 2007 race that A Company was the only one to bid for the portable sanitation contract.

Jackpot Sanitation, irritated by payment delays for the 2006 race, would not bid in 2007, and Executive Restroom Solutions -- which handled the 2005 marathon -- had gone out of business.

Miller's counterpart at Jackpot, Kim Nowak, was sympathetic but hardly surprised. Nowak was tipped off by ERS -- which was still in business in 2006 -- about the difficulties Devine had meeting its obligations. Jackpot required half of the fee in advance of the 2006 race and got all it was due, after almost five months.

"They didn't even approach us (to bid) for 2007," Nowak said of Devine Racing. "Just judging from what I've heard, they must just be going down the phone book."

There's only one City of Las Vegas in the phone book, though. As part of its agreement to obtain a permit from the city, Devine must pay the overtime involved for Metropolitan Police Department officers to man the course.

The company was required to front half of the expected fees in 2007, paying $96,079.75 on Nov. 30, two days before the race. On Dec. 27, a check was cut for $60,126.25 to complete the obligation, said Judy Bleak, the accounting director for the Police Department.

But even the muscle of government agencies has not always been enough.

North Las Vegas is still due $6,190.48 from December, with the bill sent to Devine on Jan. 31, said Brenda Fischer, director of communications for the city.

"It has not been paid. We have sent them past-due letters," said Fischer, noting Devine is trying to work out a suitable payment arrangement, which has kept the city from turning the issue over to a collections agency.

Desert Entertainment, which provides staging for on-course entertainment and in the start-finish area at Mandalay Bay, is apparently on a short list of vendors who have been paid in full. Still, company President Bill Fleming said he is unlikely to offer his services after the experience of the past two years.

"I'm not interested in dealing with them anymore," said Fleming, who recently was paid off for 2007 on an approximately $10,000 contract. "I'd rather not have the work and rather not have the headache."

For some organizations, that is much easier said than done. Two charitable groups -- Help of Southern Nevada and the local chapter of Easter Seals -- allocated substantial volunteer help to the marathon in 2006 and 2007 but are still owed approximately $4,000 apiece.

Easter Seals, which provides work opportunities for adults with disabilities, was responsible for organizing and stuffing the registration bags for all of the participants and for manning a water station along the course.

Scott Mullen, vice president of development for Easter Seals, said his organization has received only partial payment, but he probably would continue the relationship with Devine to keep getting work opportunities for disabled adults.

Fuilala Riley, chief operations officer for Help of Southern Nevada, could not make that same promise. In December, the organization provided a crew of 80 to follow the runners from the starting line and clean up behind them, and the group cleaned up the areas around all of the watering stations along the course.

The organization had a $2,500 contract for 2006 and a $5,000 contract for 2007. Riley received a $2,000 payment within the past two weeks, which covered the remainder of the 2006 obligation but still left $4,000 outstanding.

"Honestly, the aggravation isn't worth what we receive,'' Riley said. ''It's a long day for our volunteers and staff, a 13-hour day, and most of them do it because of the benefit the charity gets. I don't want the volunteers to feel like this is just wasted time."

Bailey's Sweeper Services, which has operated for 20 years in Las Vegas, also might forgo a third round with the marathon.

General manager Paul Loebig, who said it "took forever" to get paid in 2006 on a contract of approximately $5,200, still agreed to send more trucks for 2007, putting eight of his 11 vehicles on the course. Race-day cleanup on Dec. 2 and some touch-up work on Dec. 3 led to a bill of $10,250, which Bailey's sent on Dec. 5.

Loebig still is awaiting any amount of that sum. An invoice provided by Bailey's earlier this month -- with more than $950 in late fees -- shows a total due of $11,200.44.

Loebig said he was most dismayed by the lack of communication from Devine Racing.

"I hadn't heard from anyone (in months)," Loebig said.

Many other businesses -- from printers to warehousing and barricade companies and waste removal services -- refused to comment on the status of their contracts with Devine, neither confirming nor denying they are due money.

But Loebig did not mince words with regard to Devine Racing.

"They siphon money out of Las Vegas, they don't pay people, and they don't reinvest in Clark County," he said. "They have made no effort."

Clark County Commissioner Rory Reid, a supporter of the marathon from Day One after Devine bought the race from Boka, said he has spoken with the company and has insisted on rapid progress to resolve its financial commitments.

"They're not unaware that there are expectations that this be fixed quickly," said Reid, adding he had become aware of the depth of the problem only "very recently."

Reid said, "I told them we expect that it be taken care of, and they assured me a plan was in place. ... Time will tell."