By Ray Smith, Exhibit City News
VEGAS LOOP
Beleaguered by a spate of OSHA safety violations, Boring Company received a vote of confidence from the Las Vegas Convention and Visitors Authority with the approval of a new construction and management agreement for the Vegas Loop.
The authority’s board of directors approved the agreement for an underground transportation connection for the Vegas Loop portion planned for Paradise Road to the Las Vegas Convention Center.
The project calls for two lanes running about two miles south underneath Paradise to UNLV’s Thomas & Mack Center, convention authority CFO Ed Finger describes at the March 12 board meeting.
“They are crucial to moving convention traffic south, eventually to the (Reid International) airport,” he says.
The project will be funded, built, operated, and maintained by Boring Company. LVCVA will continue to own station structures in the Silver Lot, where construction has begun on the Paradise connection.
The agreement with Boring Company also grants perpetual easements on and under the Las Vegas Convention Center campus.
Boring Company, owned by Elon Musk, has been slapped with $112,000 in fines by Nevada OSHA. The citations, which are being disputed by the company, include inadequate worker protection from chemical hazards, skin burns from chemical sludge, unguarded conveyor belts, and the collapse of a concrete muck bin.
“We looked at those incidents, particularly the wall falling, and we made it really clear to the Boring Company that it’s important this project is done safely,” authority CEO Steve Hill told the board. He added that an LVCVA staff member with OSHA experience is available to assist Boring with its project.
“This project is exceptionally important to Las Vegas. It’s really an opportunity to make a dent in traffic congestion,” Hill says.
TELECOM SERVICE
The board awarded a contract for telecommunication services at Las Vegas Convention Center to Cox Nevada Telecom.
The CEO will execute an amendment to the existing revenue contract between LVCVA and Cox for the period from July 1, 2024, through June 30, 2029, with an optional five-year extension. The board also authorized the purchase of technology infrastructure in the amount of $15 million if the contract is terminated early.
Cox’s proposal increases LVCVA’s revenue share from 46 percent to 62 percent, increases the technology fund from 3 percent of gross revenue to $750,000 a year, and replaces existing technology infrastructure.
Cox collects revenue from tradeshow customers for providing telecom services, totaling $16.7 million in 2023. The authority’s commission was $7.7 million. LVCVA makes the final decision on customer pricing.
CFO Finger recognizes that pricing for telecom services is a “consistent pain point” for convention center customers. LVCVA and Cox have committed to working with customers in the coming months on a new pricing structure that may involve using the extra revenue sharing to reduce customer pricing.
VISITOR PROFILE
The average age of visitors to Las Vegas in 2023 dipped to 43.8 years, down from the average 47-year-old in 1993, reports Kevin Bagger, VP of research at LVCVA. It was even lower during the pandemic when Millennials showed the least fear of travel.
The Las Vegas Visitor Profile was introduced in 1975, steering the direction of the convention authority, and it’s easily observed that visitors have gradually changed over the decades, Bagger says.
Millennials represent 45 percent of Las Vegas visitors, followed by Gen X (33 percent), Baby Boomers (14 percent) and Gen Z (8 percent).
(Visitor statistics as provided by the Las Vegas Convention and Visitors Authority)
Visitors are spending less time gambling – 2.4 hours a day on average in 2023, compared with 4.9 hours in 1993 – but their gambling budgets have increased from $445 to $788 during that time. Bagger notes that 1993’s budget, adjusted for inflation, would be around $945 today.
Board member and Las Vegas Councilman Cedric Crear asked if Las Vegas may reach a “tipping point,” pricing itself out with resort fees, parking fees and $20 cocktails.
Longtime residents understand that Las Vegas has “evolved” and the “comping situation is different,” Bagger responds. “We’re sensitive to that elevation, but if you get outside of Las Vegas, you’ll find we’re very competitive with other destinations.”
