Las Vegas businesses hit hard by Formula 1 ask tourism board for $23 million
Small businesses this week called on the Las Vegas Convention and Visitors Authority (LVCVA) to compensate them for losses suffered at the inaugural Las Vegas F1 Grand Prix. While the Nov. 16-18 campaign reportedly delivered on its promise to inject $1.2 billion into the local economy, the money was not evenly distributed.
At a public meeting with the LVCVA this week, local business attorney Lisa Mayo-DeRiso called on the group to pay $23 million to compensate the owners of more than a dozen restaurants, gas stations and other businesses along the track. The businesses claim nine months of road closures, traffic diversions and blocked entrances nearly left them bankrupt.
Some of those business owners told the Las Vegas Review-Journal they have scheduled meetings with the LVCVA and county and racing officials in hopes of finding a satisfactory resolution without resorting to litigation.
"Who benefits? How many hotels?" Gino Ferraro, owner of Ferraro's Ristorante on Paradise Road, wrote in a letter to Clark County commissioners two weeks ago. “How do we know what the return on investment is for all the money spent destroying the Las Vegas Strip, its surrounding areas and ultimately people’s lives?”
Ferraro said the contest cost his company $2.5 million in sales and $500,000 in profit.
Build bridges over problematic intersections
Of particular concern is a temporary bridge allegedly constructed in October on Flamingo Road above Koval Lane. Originally intended to provide access to resorts and businesses around the racetrack, traffic was also rerouted through facilities such as a Shell gas station and convenience store, with owner Wade Bohn claiming the reroute would generate $4 million in revenue but losing $1 .
The Clark County Public Works Department is studying traffic flow before deciding whether to recommend building a more permanent bridge, but the bridge remains standing — despite the county's promise to remove it after the Super Bowl on Feb. 11.
Room for improvement
"We recognize that the construction work required to host an event of this size disproportionately impacts some people," LVCVA President and CEO Steve Hill said in a statement to the R-J. "We... We learned a lot” In the first year, we have started discussions with businesses near the Flamingo-Koval intersection to understand their concerns. We will continue to work with them to find possible solutions and create opportunities to make future games better for everyone involved. "
Longtime Las Vegas reporter Andrew Kiraly wondered why the LVCVA should foot the bill alone during an appearance on the podcast Friday.
"Why can't Formula 1 pay into this recovery fund?" Kiraly asked at CityCast Las Vegas. “Or why can’t the Big Four (casino companies) pay into this recovery fund? … Why can’t there be some kind of public benefit charge on these huge spectacles that are pouring in, eroding our infrastructure and causing huge trouble for working people? What? A proactive way to address these impacts that we are all feeling."
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Source: www.casino.org
