Rent increased at LV Convention Center

The Las Vegas Convention and Visitor's Authority board approved rental rate increases for the Las Vegas Convention Center Tuesday, but postponed raising rents at the Cashman Field Convention Center in the face of opposition from non-profit groups and some board members.

At the LVCC, rents were increased from 15 cents per square foot to 20 cents per square foot. The increase, which will not apply to events already booked, will increase revenues by $1.8 million over the next year. By the 2001-2002 fiscal year, the increases will bring in an additional $8.7 million per year.

The increased rents will be phased in to apply to current customers as they sign up for future shows.

The increase is needed to keep pace with a 94.3 percent increase in operating expenses since the last rent increase in 1985. Officials emphasized that even with the increase, the Las Vegas Convention Center will still be cheaper than other comparable Western convention centers, and that Convention Center clients are not upset about the increase.

"We've not met with any resistance whatsoever," said Thomas Smith, LVCVA vice president of facilities.

The same cannot be said of a proposal to raise rents at the Cashman Field Convention Center. Under a proposal made public last month, the LVCVA would raise Cashman Field convention rates from 15 cents to 20 cents per square foot for trade shows and conventions, and from 5 cents to 20 cents per square foot for public events.

Facilities officials say the Cashman increases are also needed to keep pace with increasing costs, noting the complex currently receives a $4 million annual subsidy from the LVCVA just to keep operating. But several non-profit groups that use the Cashman complex for events worry the increases will price them out of the facility.

When the LVCVA first proposed the increases at last month's board meeting, stiff resistance from board member Mary Kincaid prompted a the board to postpone its decision until Tuesday's meeting. Tuesday, Smith asked the board for another delay.

That didn't stop several members of non-profit groups who use the Cashman facility from voicing their opinions.

"The proposal for the 300 percent rate increase is hard to take," said John Hanson, whose group The Bridal Spectacular rents space at Cashman Field every year.

Anna Brown, president of the International Festival Association, which holds an international food festival at Cashman each year, said higher rents will interfere with her group's practice of giving scholarships to members.

"We do have a problem with you charging non-profit groups that are only trying to give back to the community," Brown said.

Smith said the LVCVA staff will take a closer look at the current revenue and loss figures from Cashman Field's convention complex before submitting a rent increase proposal at next month's meeting.

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