Las Vegas Convention Center has long-term plans to create the Las Vegas Global Business District. (Photo by LVCVA)
While it has a dizzying array of entertainment options that awaits guests, even Las Vegas knows it must do more than hang an “Open” sign for business in order to remain competitive not only nationally but even with next door neighbors. It is but one reason these days there are as many cranes as casinos dotting the city’s landscape.
“There are no givens in any city and any venue,” said Michael Roth, VP Communications for AEG Live, which is partnering with MGM Resorts International to build a new arena set to open in spring 2016. “You have to first provide the right location and the right comfort and amenities for the guests or they won’t come back.”
The new Las Vegas arena is but one of those projects currently either under construction or part of a renovation or expansion in America’s favorite playground. Construction began on May 1 with groundbreaking, followed by the demolition of existing buildings and excavation of an oval area for the arena. The arena will be located between New York-New York and the Monte Carlo casino hotels.
“It will be a world-class arena for sports and entertainment,” Roth said. “I can’t imagine a touring act that plays arenas that’s not going to want to stop in Las Vegas for one or two shows. You also have a very active market with local citizens and that is so often important to family shows like the circus and ice shows and certainly Las Vegas has proven to be a very active market for award shows. There are shows that have not contemplated Las Vegas before, but once they see the amenities and technology being built in the new building, I think they all will consider Las Vegas as well.”
Roth noted that at the groundbreaking a number of dignitaries who spoke were representative of the variety of events that the venue will host, from boxing to Ultimate Fighting Championships to NCAA basketball and other championships and, of course, concerts. The private partnership deal between AEG and MGM to build the arena will cost $375 million.
MGM Resorts along with Cirque du Soleil is involved in another new project that will open in May 2015 and host Rock in Rio, one of the world’s largest music festivals. The 33-acre, open-air venue will be built near Sahara Avenue and its property Circus Circus and will become a permanent venue with a daily capacity to host 80,000 people to view five stages.
Rock in Rio started in 1985 and has welcomed more than 1,120 performances to one billion fans across the world. Las Vegas will invest $20 million to develop the infrastructure for the four-day festival held every two years and will also be utilized for other events.
Renovations Reign
It’s not just new construction that is bubbling up in Las Vegas. Another arena of note, the famed Thomas & Mack Center on the campus of the University of Nevada at Las Vegas, is undergoing a major renovation to the 31-year-old building that hosts Runnin’ Rebel basketball.
Much of the renovation will be committed to deferred maintenance, said Michael Newcomb, executive director. “An upgrade of all electrical and HVAC is a priority, because without these systems we risk downtime due to failure. Along with the deferred maintenance rehab we will be adding and refurbishing concourse restrooms and concession stands, bringing everything up to the proper code as well as providing more restrooms and more points of sale.”
Thomas & Mack began its renovations the first week of October and is slated for a spring 2016 completion.
The venue’s last major renovation was in 1999 and enhanced a lot of areas on the concourse and outside the venue. The current renovation project costs $47 million, which was acquired from the state through bonds based on slot tax revenue, the same funding that built the arena and covered the last renovation.
“We are out there raising additional money to enhance and add to the project,” Newcomb said.
Unconventional Growth
Consider the city’s convention business, which thanks to a proposed expansion could lead to an additional 480,000 new attendees as current conventions grow and up to 20 new conventions that may relocate to Las Vegas, according to Rossi Ralenkotter, president and CEO of the Las Vegas Convention & Visitors Authority (LVCVA).
The LVCVA recently unveiled its plans for the Las Vegas Global Business District. This overarching vision will be the next evolution of the trade show business in the destination and will launch Las Vegas 25 years ahead of the competition, said Ralenkotter.
Envisioned to be completed in phases, the Las Vegas Global Business District creates an international business destination synonymous with the world famous Las Vegas brand by incorporating major renovations of the Las Vegas Convention Center, expanding the World Trade Center designation and developing transportation connectivity through a centralized hub.
“As the number one trade show destination in North America, we can’t and won’t stand still,” Ralenkotter said. “Our largest shows have told us they want to expand by using more exhibit space and attracting more delegates. We want to be able to meet those needs.”
Ralenkotter added that the LVCVA is in the early phases of the project and exploring both land acquisition opportunities and funding opportunities.
“In addition, we recently released a feasibility report outlining the estimated economic impact of the Las Vegas Global Business District,” Ralenkotter said. “According to that report, the project is expected to create 6,000 construction-related jobs and when complete, the resulting increase in economic activity could sustain up to 6,000 permanent jobs and generate an estimated incremental impact of nearly $700 million and $221 million in wages and salaries. That’s a significant and much needed boost to Southern Nevada’s economy.”
Ralenkotter said that the expansion for the 2.2-million-sq.-ft. Las Vegas Convention Center, the country’s third largest convention center that currently operates at capacity and hosts approximately 1.2 million delegates every year, will be completed in two phases with the first phase adding 750,000 sq. ft. of new exhibit space and 187,500 sq. ft. of supporting meeting space, while the second phases will focus on renovating the existing facility and includes a 100,000-sq.-ft. general session space and another 100,000 sq. ft. of meeting space.
Proposed Projects
Back on campus, the UNLV Campus Improvement Authority Board (CIAB) in September agreed to request a two-year extension of the timeline for its work on a proposed UNLV stadium.
“The report included discussion on the type, size and potential cost of various stadium options, with a particular focus on three stadium options – open air, domed and state-of-the-art collegiate option,” said Tony Allen, director of media relations at UNLV.
The report and recommendations will be presented for discussion during the 2015 Nevada Legislative Session. The extension, which would require action by state legislators in 2015, would enable the CIAB to continue its work through the 2017 Nevada Legislative Session. Extending the authority of the CIAB through the end of the 2017 legislative session will allow it to continue to explore additional funding options and refine other elements of the project.
“I think the need for a new state-of-the-art collegiate stadium has been clearly demonstrated and the project can be viable, but this is a work in progress and projects like this take time,” said Don Snyder, UNLV president. “This stadium is an important project for the longterm future of the community and UNLV, but it must be weighed against all the other needs at the university and in Southern Nevada. We will continue to work on this project, but it will be developed over a longer period of time.”
Whatever the project, Las Vegas will continue thriving as long as those involved in building for the future continue to have a vision.
“We don’t ever expect a given in any project we do,” Roth said. “We work very hard to make sure we have the right atmosphere on every single level to encourage people and to respectfully take their money to come in and buy a ticket for an event that we hope will be unforgettable. That’s how you build your future fan base.”
Interviewed for this story: Tony Allen, (702) 895-0893; Michael Newcomb, (702) 895-1003; Rossi Ralenkotter, (702) 892-0711; Michael Roth, (213) 763-7712; Don Snyder, (702) 895-3201