Wednesday, Dec. 9, 1998 | 11:43 a.m.
The Las Vegas Convention and Visitors Authority board of directors is negotiating with a group of its customers to help build a 1 million-square-foot exhibit hall south of Desert Inn Road.
The board authorized LVCVA President Manuel Cortez to sign a contract with a consortium that wants to pay $50 million in prepaid rent to help build the new south hall at the Las Vegas Convention Center.
The two-story hall would be located on what now is a parking lot. A section of meeting rooms would connect the exhibit hall to the south end of the existing convention center and span Desert Inn Road.
The section of meeting rooms over Desert Inn Road would create a tunnel roughly the length of a football field. The exhibit hall would have two levels of floor space of about 500,000 square feet each.
It's the first time the LVCVA is considering building a two-story exhibit hall. The Sands Expo Center has trade show floors on two levels.
LVCVA officials would not identify members of the consortium, stating its membership has not been finalized. Tom Smith, vice president of facilities for the LVCVA, said the consortium consists of trade show presenters and there are six companies represented with a seventh considering joining.
The development of buildings in exchange for prepaid rent is not unprecedented in Las Vegas. Smith said the developers of the Comdex computer show and the Winter Consumer Electronics Show teamed to contribute to the construction of the area formerly known as the west hall several years ago.
"It's a win-win situation for everybody around," said Smith, adding the consortium would be credited at the standard rental rate.
The benefit to the consortium, Smith said, is that it would be assured of the new facility's space for its shows, probably for several years.
The $50 million the board approved accepting from the consortium represents about 60 percent of the total cost of the project. Cortez said the remaining $30 million to $35 million would be borrowed and the agency has the bonding capacity to handle the financing.
The board will consider hiring an architect to design the project next month. Cortez said he hopes ground will be broken in March or April, with completion planned in spring 2000.
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