LVCVA turns the tables on Adelson

A dispute between Venetian hotel-casino officials and the Las Vegas Convention and Visitors Authority continues to simmer.

Both sides want access to the other's financial records. And both sides are being difficult.

After Tuesday's LVCVA Board of Directors meeting, LVCVA staff was to work with Venetian officials to determine whether financial projections related to a planned $100 million Las Vegas Convention Center expansion are accurate.

Venetian officials contend the numbers are incorrect, and believe an LVCVA plan to finance half the expansion with early rent payments from convention customers at discounted rates will ensure Convention Center operating losses for years to come.

Thursday, Venetian officials asked for a meeting between their staff, the LVCVA staff and a Price Waterhouse auditor. According to Andy Abboud, Venetian director of government relations, the Price Waterhouse official's role is to take an unbiased look at LVCVA's figures.

But in a memo to the Venetian, Manuel Cortez, president and chief executive of the LVCVA, asked for a list of detailed financial information from the Venetian in advance of a meeting.

The memo requests "Full accounting of revenue generated by the Sands Expo Center," the convention center connected to the Venetian, a "full accounting of expenditures that support the Sands Expo Center (line items)," an annual report and 10K form from the Sands, a "complete list of business leads provided to the Sands Expo Center by the LVCVA," the "staffing plan of Sands Expo Center to include costs ... by department. Also include numbers and salaries of crossover staff that are utilized between the Venetian Hotel and the Sands Expo Center," the "booking policy," of the Expo Center, copies of any agreements between the Sands Expo Center and any of the conventions that have agreed to pre-pay rent at the LVCC, and the cost of the most recent Sands expansion.

Cortez says the materials are needed to help his staff compare the operations of the Sands Expo Center and the LVCC.

"Statements have been made by Mr. Adelson relative to the operational costs and the differences between the Sands Expo Center and the Las Vegas Convention Center relative to these costs," states Cortez' memo. "Information received will allow our auditing firm to compare and verify any discrepancies."

In a later memo, Cortez declines the Venetian's request for an immediate meeting. "In order for us to prepare for the meeting it is important we be provided the information we requested from you this date," states the memo.

Abboud accused the LVCVA of "stonewalling," saying, "They refuse to sit down and talk with us."

LVCVA spokesman Rob Powers called that assessment "silly."

"There are a lot of very complicated issues here," said Powers. "They have been relentless in asking us for information. The first time we ask them for information they say we're stonewalling."

The Venetian ultimately agreed to give LVCVA auditors full access to its records, but only in the Venetian's office, and only if the LVCVA auditors signed confidentiality agreements. Many of the requested records are not publicly available information, contend Venetian officials.

Abboud says the LVCVA refused this offer.

Meanwhile, Abboud said the Venetian sent its Price Waterhouse auditor knocking on the LVCVA's door. According to Abboud, the auditor met with LVCVA's auditors for an hour. Abboud is unsure whether the auditor was able to gather all the information he needed.

Powers said the LVCVA is attempting to work with the Venetian in every way possible and anything Venetian officials say to the contrary is public posturing

The LVCVA will hold a special meeting April 27 to decide whether to proceed with the Convention Center expansion as planned.

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