Restructuring debt while securing a five-year labor agreement to move forward with plans to create a Global Business District was approved by the Las Vegas Convention and Visitors Authority (LVCVA) during its monthly meeting July 9.
Board members unanimously approved issuing up to $218.5 million in general obligation indebtedness through bonds with funds to repay the amount most likely to come from revenue streams generated by room taxes and use of the Las Vegas Convention Center and other properties controlled by the LVCVA.
A potential ad valorem tax on real and personal property in Clark County also might occur, but board members said the traditional revenue streams generated through room taxes and facilities use always have paid any debts in the past and should negate the need for a property tax. Revenues from such sources are expected to grow a great deal next year and should amount to the second-best year for Las Vegas and Clark County. The best revenue year was in 2008, when more than $220 million was generated through the two revenue sources, and 2014 should prove to be almost as successful as 2008, according to board members.
Some $150 million of the approved debt will be used to help pay for design and architectural services as well as land acquisition. Several properties already have been purchased, mostly along Sierra Vista Drive, which is adjacent to the convention center. Demolition already has begun on several former apartment buildings located on parcels intended to improve the move-in and move-out for tradeshows and events.
During the LVCVA’s June 11 board meeting, more than $1 million was approved to demolish buildings, clear properties and provide abatement oversight of three parcels located at 552, 560 and 594 Sierra Vista Dr. The project is to be done over a 90-day period and will involve leveling and compacting the soil, so the soon-to-be-vacant lots can be used for move-in and move-out during tradeshows.
While work is proceeding on clearing those lots, another land deal has fallen through after the landowners wanted to change deal terms. The LVCVA board in May had approved the acquisition of property located at 920 Sierra Vista Dr. for nearly $4.6 million. The 3.35 acres of land near the intersection of Sierra Vista Drive and Paradise Road is the location of Sierra Vista Square Apartments.
The board also had authorized $680,000 for tenant relocation and leasehold-management costs while preparing the property for eventual demolition. But after approving the purchase, the landowners nixed the deal by changing the terms, and board members on July 9 agreed to negate the deal altogether.
While that deal fell through, the Board of Directors agreed to a new five-year contract with the Service Employees International Union Local 1107, which should ensure no labor issues will arise during the first five years of the 10-year plan for the proposed $2.5 billion Las Vegas Global Business District.