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Q+A: jim murren state budget In North vs. South battle, who's getting robbed? By Andrew Doughman staff writer steve marcus big plans: Jim Murren, chairman/CEO of MGM Resorts International, said "it's the beginning of a new era for MGM." mgm resorts' plans for new park, arena have ceo excited By Richard N. Velotta senior staff writer MGM Resorts International reported its best quarter in five years this month. Chairman and CEO Jim Murren reflected on the financial turnaround and looked ahead to MGM's next big task: developing an outdoor dining, retail and recreation plaza between New York-New York and the Monte Carlo. When will the public begin seeing construction on the new park and arena planned near New York-New York? I'm particularly excited about this. The preparation of the site is already underway on both the facades of the New York-New York and the Monte Carlo. The public won't be able to see some of that right away, but it will progress throughout this year. The major tenants will open up in the first quarter. We'll have Hershey's over at New YorkNew York. Over at Monte Carlo, the SBE Double Barrel Roadhouse will also be open. Then, you move into the park itself. I'm particularly engaged in that. It's important to me and to the Strip, so we want to get this right from the stand| 2 7 M AY 2 0 1 3 20130527_VI07_F.indd 7 | point of a public space. We'll have a big anchor there, Shake Shack. You can't get into a Shake Shack anywhere in the country. It'll be a big hit. Other elements will be on the north façade of New York-New York, including a brewpub that opens up New York-New York to this park. That will progress into 2014, and we'll move into the arena (a 20,000-seat arena) in 2016. What's the connection with SBE? That's the Hyde group we work with at Bellagio. It's also the company that has dozens of nightclubs and restaurants in the Southern California market. They also opened the SLS in South Beach, and they're the owner and developer of the old Sahara hotel here. That's the partner we're going to have for that Double Barrel Roadhouse we'll have at the Monte Carlo. MGM Resorts had record earnings this quarter, and you said, "It's the beginning of a new era for MGM." But the gaming industry is telling state lawmakers that it's in terrible shape and can't see murren, page 14 CARSON CITY — Greedy Northern Nevadans are hoarding the state's money while Southern Nevada's families and children go without. Ever heard that one before? For years, observers have noted how the state seems to operate a hypothetical conveyer belt that redistributes southern wealth in a way that favors northern road construction, schools and universities. At the same time, some northern lawmakers are certain they're donating to the south. "They're both right on the surface," said John Restrepo, an economist with RCG Economics in Las Vegas. Here's how this works: GOP Assemblyman John Ellison of Elko said rural counties subsidize urban counties through the "net proceeds of minerals" taxes that mines pay to the state. "Mining is paying a large portion," Ellison said. "A lot of net proceeds of minerals goes back to the general fund, which helps the state." Translation: Mining counties are less like Scrooge and more like Santa. Meanwhile, southern legislators have been quick to note that the south has the bulk of the population — 72 percent — and generates most of the tax revenue in the state. This is also true. A 2009 study from Applied Analysis quantifies what might appear to be common sense: Clark County's tourism economy generates most of the state's gaming and sales tax money. "Today, Clark County's economy is generating a disproportionate share of state general fund revenues, a substantial share of which is spent in other parts of the state," the study's authors concluded. The study also notes that "Clark County does heavily 'subsidize' the remainder of the state" to an extent that is "beyond credible rebuttal." To say every county gets a fair shake, legislators have to ask how fairness is measured. Should they measure dollars per person? How about a county's total economic activity as a percentage of the state's total economic activity? How about the number of people who use state programs and services? "It's not really north vs. south," said Assemblywoman Maggie Carlton, D-Las Vegas. "It's population and what the actual needs are. Depending on the issue, it bounces back and forth." These are difficult issues to sort out. The authors of the 2009 study note that it is only a "preliminary analysis," not a solution for the problems. 7 5/23/13 2:25:52 PM