LVCVA suggests Adelson a hypocrite on expansion issue

Las Vegas Convention and Visitors Authority officials are suggesting Sheldon Adelson is being hypocritical in his criticism of an LVCVA Convention Center expansion plan.

They say Adelson helped finance an expansion at the facility years ago in a manner similar to the one he is criticizing now.

But an Adelson associate said the 1983 deal "didn't cost taxpayers a nickel," whereas the plan to pay for the current expansion will involve at least $75 million in new public debt.

Earlier this week, Adelson attacked plans to finance a 1.3 million-square-foot expansion of the Convention Center with $52 million of prepaid rent from a consortium of trade shows. The rest of the estimated $125 million cost would come from the sale of bonds.

Convention authority officials say the proposal is similar to a plan adopted in 1983, when Adelson, then owner of Comdex; and the producers of the Winter Consumer Electronics Show agreed to build a 120,000-square-foot expansion at the Convention Center. In return, Comdex and CES got to rent the expanded space for $1 a day for their next 12 shows.

"The difference is that Adelson and CES paid for the whole thing," said Venetian President William Weidner. "There were no bonds issued or debt service to pay, and when it was completed, it was turned over to the Convention Authority.

"The current proposal calls for the consortium to put up $52 million and get a rent discount, while the convention authority has to support the shows while paying at least $3.5 million additional debt service."

Weidner acknowledged the consortium that approached the Las Vegas Convention & Visitors Authority with the pre-paid rent proposal consisted of trade shows once housed at the Sands Expo Center. But he said that wasn't the reason for Adelson's opposition to the proposal.

"Even if you accept the fact there's a secondary agenda, it's still a stupid deal," Weidner said. "If the trade shows want to do what Sheldon did, then build the million square feet, donate it to the Convention Authority and rent if for a dollar. That's a good deal, because there's no public debt involved.

"But this is a phenomenally stupid idea. The consortium is taking the best 12 weeks out of what the Convention Authority says is a maximum effective occupancy of 36 weeks and getting the space at a 37.5 percent discount.

"Why discount the prime dates and issue bonds that will cost the taxpayers extra money? These are tax resources we can use. The Convention Authority can be a huge tax cash cow, but this shows its inability to make smart-enough decisions."

An LVCVA spokesman said the bonds would be paid back from room-tax revenues generated from tourists, not by Clark County taxpayers.

The LVCVA board agreed Tuesday to table a decision on the consortium's expansion plan until April 27.

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