Tag Archives: economic stimulus

Las Vegas’ New City Hall Project Continues to Chug Along

Project plans for a new Las Vegas City Hall appear to be moving forward, despite higher than expected interest rates.  To provide a mechanism for more effective interest rates, Las Vegas is seriously looking now at using “Build America” bonds to finance their new city hall. 

By using these bonds to finance the project it will cost Las Vegas as much as $267 million, but save the city  $82 million over 30 years, based on current estimates of competitive funding methods. 

Las Vegas has already awarded a $107,800 engineering contract to design a 650-space parking garage adjacent to the proposed six-story, 303,000-sq-ft building City Hall complex at First Street and Clark Avenue.  

The complex, if and when it is finished, is planned to have a 250,000-sq-ft of office space, a 500-seat city council chamber and a public exhibition space, as well as an outdoor plaza with solar panel trees that serve as shade structures. 

Las Vegas Mayor Oscar Goodman said recently that prospects for the project were bleak because the interest rates on one possible funding mechanism were as much as 8 percent too high. 

But Goodman says the Build America bonds are improving the viability of the project. 

The Build America bond program is part of President Barack Obama’s stimulus package which lets state and local governments issue taxable bonds for capital projects and get a direct federal subsidy payment from the Treasury Department for a portion of their borrowing costs. 

The Las Vegas City Council will be meeting today to further discuss the issue, but the final vote on whether to continue to move forward on the city hall plan won’t occur until November or December.

If approved, the Las Vegas City Hall project is expected to finish by mid-2011– and create 13,000 new jobs.

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Speeding Tourists into Las Vegas at 150 or 300 mph – or not at all?

Sooner of later, most predict, the stagnant Las Vegas economy will recover.  The only question is what the crowning stimulus will be and when will it happen.  To have over 42 million visitors annually to come to Las Vegas and stay in the projected 157,000 hotel rooms projected by 2011, bringing about a true economic recovery, what better of an enticing solution than to provide a high-speed train to supplant current driving and flying modes, whisking riders between Las Vegas and Southern California, the route usually taken by visiting tourists.maglev

It sounds like a good idea to goose Nevada and Southern California tourism numbers, but is it really a viable solution?  Political jaw flapping has been ballyhooed for years and especially now with the $8 billion in federal money available for competing fast trains that offer the best solution.

Two alternative proposals are currently on the table.  One is a publicly-funded maglev train, smoothly propelling tourists at speeds up to 300 mph by magnetic levitation into Ontario, California, close to the airport and hub for Southern California.  It uses a technology untried in this country because it is so expensive to build. The price tag- $12 billion.

The other is the DesertXpress, which would use traditional steel wheels on steel tracks, driven at speeds up to 150 mph with electric or diesel-electric power. It would end in the desert town of Victorville, requiring more than an hour’s drive to get to the terminus  proposed by the the maglev. Although the $4 billion project was pitched as a privately funded venture, its backers say now they may seek government loans.

Both of the proposed lines would transport passengers between Las Vegas and Southern California in about 80 minutes for about $50 — with one going at half the speed and covering two-thirds the distance of the other.

The choices raise pivotal questions as the nation weighs its appetite for risk and considers whether such a system should be in public versus private hands.   Would people in these financially trying times even consider hopping aboard either of these futuristic trains?  Las Vegas Backstage Access contends that that’s the key statistical profile that first needs to be researched prior to any determination on which method, if any, is best to deploy. 

This week, the federal Transportation Department is planned to unveil guidelines for those seeking to apply for a portion of the $8 billion passed by Congress as part of the economic recovery package. Decisions will be made this year.   Hopefully, the guidelines will follow from a robust, statistically valid needs analysis.

The maglev project desperately needs public dollars and has appealed to Obama’s transportation secretary, Ray LaHood, for $1.8 billion to develop the first segment — from Las Vegas to the state line at Primm — and to continue planning the rest of the route.

DesertXpress Enterprises LLC has shunned federal aid, promising to be privately financed and turn a profit, a feat no other modern rail line has been able to accomplish in this country. But it is also in the market for federal loans.

If the maglev project gets a federal boost of stimulus dollars, it could make it difficult for DesertXpress backers to raise private equity. If DesertXpress can leverage its newfound support from Senate Majority Leader Harry Reid, it could knock maglev out of the picture.

Maglev’s boosters say that even if DesertXpress is constructed, it will still pursue its own project. But skeptics doubt there is sufficient appetite, financial or otherwise, for the Federal Railroad Administration to permit both trains.

This maglev project is the brainchild of the California-Nevada Super Speed Train Commission, a highfalutin name for a nonprofit entity formed in 1988 with the sole purpose of developing a fast train between Las Vegas and Southern California.

The commission, made up of private citizens and public officials, entertained several technologies before choosing magnetic levitation in 1991 and choosing American Magline Group as its developer in 1993.

The maglev train,  proposed originally in 2002, proposes to zoom passengers between Vegas and the Disneyland area, enabling tourists in either city to experience the other, just 80 minutes away, without need of automobile. The northbound maglev would stop in Ontario to connect with the airport, and would stop southbound stop at Ivanpah, to connect with an airport planned for there. The project could break ground in 2011.

With California separately building a north-south high-speed train line between San Francisco and Orange County, the maglev team envisions passengers being able to connect to the California train at its stop in Anaheim station to continue to Los Angeles’ Union Station.

Groundbreaking for the California network could happen in as little as the next few years, funded by an $11 billion bond issue approved by California voters last year.  It is considered a front-runner in being awarded federal stimulus money.

Maglev critics, though, deride the technology as wishful futurism, and transportation experts say it is maglev’s price tag, not the science, that has left it undeveloped in this country.

In fact, the world’s only operating commercial maglev line links Shanghai and Pudong International Airport — a 19-mile-long run completed in 7 1/2 minutes.

That system, now in its ninth upgrade, is what American Magline wants to build between Anaheim, California and Las Vegas.

Not only Reid, but much of Nevada’s political class has at times supported the maglev train. And then DesertXpress plans emerged, relatively suddenly, to pose a competitive challenge.  That has left lawmakers to rework their support. Democratic Rep. Dina Titus, a former commission member as an appointee of three governors, thinks maglev is the “technology of the future,” but is now giving some thought to DesertXpress, her spokesman said.  Democratic Rep. Shelley Berkley is among those who support “whichever one is successful.”  Sitting on fence.

Over the years, the commission has raised $10 million for maglev — more than $7 million in federal allocations championed mainly by Reid and more than $2 million in state and local funding.

Internal Revenue Service filings from recent years show that most of the commission’s annual expenditures go to the American Magline Group, the consortium of private companies that is developing the project.

Rail lines are an expensive undertaking:  Before a single track is laid, millions are spent drafting the inches-thick environmental review required by the federal government.

After two decades, the commission’s maglev project is suddenly losing the paper war.In just a few short years, the DesertXpress backers have spent $25 million producing an environmental report.  DesertXpress is the nation’s only privately financed train proposal before the Transportation Department’s Federal Railroad Administration.

If their plan is approved this year, DesertXpress backers say, they can raise private funding and break ground in 2010. Earlier groundbreakings have been postponed.

Although Reid secured another $45 million last year for maglev, the money has not been spent because the commission had been unable to raise the required matching funds until American Magline Group contributed the $11 million two months ago.

Should precursor rider statistics first staunchily justify the real feasibility/usage of any high-speed train, before reviewing and selecting of any particluar method, Las Vegas Backstage Access would favor the maglev proposal.  

The DesertXpress appears to be a dead-end train to nowhere proposal, a mass transit system doomed to economic and ridership failure from the get-go.  Few riders from Las Vegas, it is believed, would relish the idea of stopping in desolate Victorville and then wait to catch another train or rent a car to drive or find an airline to fly their last leg across the Mojave Desert to Southern California, adding considerable more time and expense to their trip.   

The maglev train would provide a relatively more successful ridership and would greatly boost Las Vegas tourism numbers and relieve traffic congestion at McCarran International Airport, on the I-15 freeway and in Clark County, especially along the Strip corridor. Without having the maglev option, passengers could just as easily and economically fly the entire route in one stop.  And more may just opt to do the usual four-hour plus grueling drive. Looking to long-term debt, the DesertXpress would most likely be severely challenged and potentially cause much more relative public funding than the maglev to stay afloat.

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President Obama Visits Nellis Air Force Base today in Las Vegas

Nellis Air Force Base in Las Vegas hosted President Barack Obama today giving him an up close tour of the 140-acre solar photovoltaic array that has been running since December 2007.  The installation at Nellis is the largest of it’s kind in the United States and an example of how solar energy can be captured and processed in a sun-soaked state. nellis

The Nellis power plant was funded by NV Energy in return for energy credits which may be sold to other utilities.  The Air Force buys their power at reduced rates and rough estimates indicate that the solar array could save the service $1 million per year or $40 million over the 40 year lifespan of the project. 

While at Nellis, President Obama gave a speech at the Thunderbirds’ hanger to 400 airmen and other base personnel about the progress made during the first 100 days of the Recovery and Reinvestment Act.  

Obama said the expectation is that there will be more than $467 million in stimulus money used “to expand and accelerate the development, deployment and use of geothermal and solar energy throughout the United States.” Nevada is in line for more than $1.5 billion dollars in Recovery Act funds. 

Today’s event followed the Tuesday night Caesars Palace fundraiser for Democratic Senator Harry Reid that the President attended. 

President Obama will leave Nevada for Los Angeles later today where he will attend a Democratic National Committee fundraiser.

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Las Vegas Cougars Pimp PUMA’s

In this uncertain and perilous economy we live, companies grab on to any glimmering ray of hope, no matter how dim.  Companies are pushed to the brink, gearing up to an unprecedented creative overdrive.  Just look at General Motors and Segway.  With GM trembling on the brink of bankruptcy, having already grabbed $13 billion in their government bailout, and now faced with the challenge of producing substantial results – people want to buy their cars – in about 50 days to the Feds or die trying. 

GM has reinvented themselves in warp speed, entering into a new partnership with Segway to produce a new 300-pound urban assault car– a vehicle not showing the characteristic smiling metal or plastic grille. It’s General Motors’ latest effort to lend its expertise in car manufacturing and exterior design and recast itself, hopefully, as a viable, environmentally friendly automaker.

The zero emissions, green power electric prototype vehicle was demonstrated in New York on April 7.  The joint GM and Segway project, coined “Project P.U.M.A.” (Personal Urban Mobility and Accessibility), consists of a lithium-ion battery powered two-seater that is canopied in a roll cage and has two wheels.  Having a top speed of 35 m.p.h., the PUMA can travel up to 35 miles between recharges.  About half the length of a Smart car, it basically consists of two Segway PTs (Personal Transporters) joined in a chassis with a transparent shield covering the top and front, and an electric drive and batteries from GM. 

But that’s not the half of it.    Despite not having airbags, the vehicle has other lifesaving and stress reduction advantages.   The cars sport automatic vehicle-to-vehicle communications systems — they can drive and park themselves, automatically detecting other moving vehicles and people in their path, while continuously synchronizing with each other to ease the flow of traffic.    The OnStar wireless communication system will enable people to communicate and locate each other in a city. 

What does this have to do with Las Vegas?  We should join in on the GM partnership, of course.  Squash those sugarplum fairy ideas of building a Las Vegas mob shrine or building that new Taj Mahal city hall.  Think American; invest in GM.  Help turn their dream into a reality. 

For GM and Las Vegas leaders, the challenge and incentive is now to show the government and the public that they’re capable of forward thinking when it comes to implementing programs that save people money, relieve city congestion and curb our urban driving rage syndrome. 

The City of Las Vegas should take part of the pent up budgeted money and use it to promote the new idea and commercialization of it all by building the requisite city electric-powered infrastructure.   Since many Las Vegas homes don’t have garages to house and charge electric vehicles, develop electric-charged depots that are conveniently dispersed throughout the city. 

Further, facing a heated Las Vegas unemployment rate over 10 percent, twice as much as a year ago, the city should part with their budgeted money to hire pick-wielding laborers to expand Las Vegas’ deplorable bike lane network.  That way the environmentally friendly PUMAS won’t be pounced on by competing gas guzzlers as they rapidly fade into dinosaur la-la land. 

Though GM says it would cost only 25 to 30 percent as much to own and operate PUMA as a conventional car, our city could be at least socially gracious enough to self-fund their own economic stimulus bailout program, so Las Vegas down and out people faced with ever shrinking incomes could purchase a PUMA to call their own. 

The thought of having no more driving stress is surreal. Not whiling away time in endless traffic jams that have become a continuous part of Las Vegas life?  Can it happen? 

And imagine all the positive Las Vegas nightlife by-products:  Pimp a PUMA and safely drive AND drink all night long on the Strip.  Gone are all those drunken driving cases that clog our already taxed court system.  Drivers just program in their entire fave peep list and automatically travel incognito throughout the evening- safely, without texting and tweeting.  

Paris Hilton and Lindsay Lohan would no doubt be in her tenth heaven. 

Just pray the automatic pilot doesn’t fail.

Check out the PUMA in action.

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Newspaper Industry Faces Tough Times, Las Vegas Backstage Access Helps

The newspaper industry in the U.S. is currently going through tough times, mirroring the malaise of our economy. newspapersPlease listen to the CBS News segment.   Las Vegas Backstage Access can help publishers not just weather the storm, but grow.

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Nevada Tourism Industry Under Fire

tourismNevada is home to many industries ranging from agriculture and ranching to the manufacture of lawn equipment and titanium products.  In the 1930s Nevada was known as much for the divorce industry as it was for mining.  But today, Nevada’s best known industry is tourism.  And tourism is under fire at the Carson City capital building in Nevada. 

As with most states, Nevada’s balanced budget requirement means that all the dollars and cents must equal out.  So when Nevada Gov. Jim Gibbons settled in to prepare the 2009 budget, declining revenue and economic downward trending made it necessary to decrease allotments for a variety of state funded agencies.   Education and health services have received the most media attention.  But in the process of allotting the evaporating funds, the Tourism Commission and the Economic Development Commission have also taken critical budget hits. 

The primary recommendation is to merge the two departments which would generate an expected savings of 58%.  Staff would be reduced from 28 to 18 and the vacant Nevada tourism director position would remain not filled.   In addition, funding would potentially be cut to current projects that support the Nevada Ballet Theatre, the Neon Museum, and the Atomic Testing Museum.

 Some of the budget cuts currently under consideration could actually result in the unintentional decrease of part of the natural revenue stream.  Because of staffing reductions and expense controls, the Tourism Commission’s Nevada magazine, would most likely become a lighter offering.  Advertisers who routinely use the magazine to promote their Las Vegas and Nevada events may be inclined to try another media format. and once they do, many may not return. 

Unless the other 49 states once again make divorce difficult to obtain, Nevada needs to ensure that tourism dollars are being spent in the best way possible to woo vacationers to stay and play the Nevada way.

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Las Vegas Sports Books Favor Arizona Cardinals in Super Bowl

The Pittsburgh Steelers are favored by 6 ½ to 7 points over the Arizona Cardinals in Sunday’s Super Bowl XLIII arizonacardinalscontest at Tampa, Florida.  Most of the early wagering at Las Vegas sports books has been for the underdog Cardinals. 

Wynn Las Vegas has the Steelers has a 7-point favorite. The Las Vegas Hilton has moved the line to 6 ½ and minus- 110.   Lucky’s sports books lowered Pittsburgh’s money-line price to minus-215 and, to attempt to dramatically boost the Super Bowl handle, posted about 165 proposition bets at seven sports books. 

The ‘dog is definitely receiving the lion’s share of wagering action. 

But there is no speculation about the Cardinals-Steelers matchup drawing a much needed $100 million revenue haul for Nevada.  

A Super Bowl-record $94.5 million was wagered in Nevada in 2006, when the Steelers upended the Seahawks, 21-10.  Nevada’s total wagering for last year’s game was $92.1 million.

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