Las Vegas is delaying a planned $890-million convention-center upgrade amid falling visitor numbers and reduced gaming receipts. The Las Vegas Convention and Visitors Authority expects a 21.8% drop in room tax revenue for fiscal 2009, prompting construction plans to be shelved until mid-2010. LVCVA will pay up to $5 million annually to service the project’s existing debt. About $140 million has been committed toward construction thus far, of which 68.5% is being financed. The project was scheduled to finish in 2011. In February 2006, MWH Global Inc., Broomfield, Colo., with HNTB, Kansas City, Mo., was awarded a four-year, $45-million contract as construction manager. The project would increase the convention center’s total size by 15.8% to 3.8 million sq ft. But rising costs had upped the project’s price tag by 17.2% in 2007. “With the recession, we think it is fiscally responsible and prudent not to incur additional debt at this time,” says LVCVA spokesman Vince Alberta.
Recession Puts Big Las Vegas Convention Project on Hold
March 11, 2009