CLARK COUNTY BOARD OF COMMISSIONERS
AGENDA ITEM
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Petitioner: |
Denis Cederburg, Director of Public Works |
Recommendation:
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Approve and authorize the Chair to sign the Third Amendment to Touchdown Structures Advertising License Agreement among Clark County and CPLV Property Owner LLC, Corner Investment Company LLC d/b/a The Cromwell, and Parball Newco LLC d/b/a Horseshoe Las Vegas f/k/a Bally's Las Vegas to allow advertising on digital LED displays on the exterior of the elevator towers for the pedestrian bridges located at the intersection of Las Vegas Boulevard and Flamingo Road, and extend the term of the agreement to December 31, 2045. (For possible action)
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FISCAL IMPACT:
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BACKGROUND:
On December 19, 2017, the Board of County Commissioners approved the "Touchdown Structures Advertising License Agreement" for a one-year term, effective March 1, 2018, with CPLV Property Owner LLC, Corner Investment Company, LLC d/b/a The Cromwell, and Parball Newco, LLC d/b/a Bally's Las Vegas, which own property on the northwest, northeast and southeast corners of Las Vegas Boulevard and Flamingo Road adjacent to touchdown structures for the pedestrian bridges. There are six touchdown structures associated with these pedestrian bridges.
The Board approved the first amendment to the agreement on February 18, 2020, which increased the annual fee by 25% for the year 2019 and 7% for each subsequent year, for the term of five years, and provided for a possible two-year extension to the term of the agreement. The second amendment to the agreement, approved by the Board on August 17, 2021, suspended payment of the annual fee for twelve months and extended the agreement term to February 18, 2026.
This third amendment to the agreement will allow for digital LED displays on the touchdown structures and establish the monthly fee for the rights to place advertising on the LED displays. The current annual fee paid for the six touchdown structures is $249,051, which is $41,508.50 each. The new annual fee for each LED display will start at $141,050 or 20% of the monthly gross revenue, whichever is greater. The fee will then increase by 2% annually. This third amendment removes one of the six touchdown structures from the agreement, for a remaining total of five touchdown structures. The term of the agreement is extended to December 31, 2045. The third amendment has been approved by Clark County Public Works staff and the District Attorney's Office.