Las Vegas Convention and Visitors Authority

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Las Vegas Convention and Visitors Authority

• Luke Puschnig
• Legal Counsel
• Las Vegas Convention and Visitors Authority

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CONVENTION CENTER EXPANSION ISSUES

• Discuss four important issues as to Convention
  Center Expansion
• 1. Why are you building?
• 2. What do you need to build?
• 3. Show me the money
• 4. Muni Bonds? I have to do what?

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WHY ARE YOU BUILDING?

• Is this market or ego?
• How do you determine what the market needs?
• Research, research and research?
• Surveys?
• Asking the industry?
• Ask your current customers?
• Ask your sales staff?
• Ask the hotels?

LAS VEGAS CONVENTION AND VISITORS AUTHORITY
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WHY ARE YOU BUILDING?

• Other relevant questions
• Hotel room capacity to host shows in that
  market?
• Do you have the transportation infrastructure
  to hold the show? (Air, bus, train and POV)
• CC infrastructure to MI/MO?
• Other show needs? (Attractions)
• Do you need to buy land?

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WHAT DOES THE MARKET SAY WE NEED TO BUILD ?

• A convention center is not just exhibit space
• Meeting rooms?
• Assembly areas?
• Association/show areas?
• Food service and other service areas?

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WHAT DOES THE MARKET SAY WE NEED TO BUILD ?

• Again, why? How does this benefit the community?
• Economic benefit?
• Social benefit? (LVCC v. Cashman)

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SHOW ME THE MONEY

• Even in the best of circumstances funding is
  difficult
• Revenue stream?
• Political reality of using that revenue
  stream?
• The real political reality of using that
  revenue stream?

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SHOW ME THE MONEY

• Assuming revenue stream is available, are
  muni bonds available? Other funding?

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TAX FREE MUNI BONDS, WE HAVE TO DO WHAT?

• IRS Private Use Rules
• Fail the private use test!
• Uniform rates
• Maximum use of facilities
• Non-discrimination
• Exceptions Concessions, Misc.

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THE END

• THINK LONG AND HARD
• REMEMBER IT TAKES DECADES TO ESTABLISH A
  CONVENTION DESTINATION, ARE YOU READY FOR THE
  FIGHT?