These are the top 10 business stories, according to the judgment of Review-Journal
staffers:
New resorts
1) Three megaresorts opened and the Las Vegas area got 12,300 additional hotel
rooms, bringing the total to 122,000.
The additional supply drew additional tourists, rather than just taking market share from existing properties.
The Venetian, Paris and Mandalay Bay joined Bellagio, which opened in October 1998, to become the newest resorts on the Strip.
Together, the three new properties cost $3.1 billion. The three new resorts added
820,000 square feet of convention space to the city's inventory. The Venetian alone
contains 500,000 square feet.
The Venetian gave visitors a chance to gaze at the splendor of Venice with recreations of intricately carved columns, marble floors and ceiling corner moldings of gold. Owner Sheldon Adelson, however, became entangled in lawsuits with the resort's contractor and subcontractors.
He also sued the Las Vegas Convention and Visitors Authority over its planned
expansion and continued his battle with the Culinary union.
New commission
2) The National Gambling Impact Study Commission in June reached a compromise on its final report to Congress. The industry was relieved that the commission didn't propose a federal gaming tax or federal regulation of casinos. It did propose limits on lottery advertising, a ban on political contributions by gaming companies and a ban on Internet gambling.
Park Place buys Caesars
3) Park Place Entertainment Corp. agreed to buy Caesars World from Starwood Hotels & Resorts for $3 billion in cash and expected to close the transaction by year's end. Park Place, a Hilton Hotels Corp. spinoff, already operates casinos under the Bally's and Hilton names.
Local economy booms
4) Driven by the expansion of gaming on the Strip, the economy continued to surge. Nevada's total payroll employment grew nearly 8 percent or almost double the pace in the first half of 1999, according to the Federal Reserve Bank of San Francisco.
During the first three quarters, visitor totals were up 10.8 percent for the year,
surprising the Las Vegas Convention and Visitors Authority. Gaming revenue in Clark
County was up 13.5 percent, and average hotel occupancy was hovering near 90
percent.
The only bummer was increasing evidence that New Year's Eve in Las Vegas might not bring as much money as the Strip had anticipated earlier in the year.
National Airlines takes off
5) National Airlines started operations in May, increasing airline passenger traffic
to Las Vegas, especially from the long-sought-after East Coast market. Competitors
added additional flights as well.
Banking industry mergers
6) Consolidation continued in the banking industry. Wells Fargo Bank and Norwest
Bank merged and began operating under the Wells Fargo name. The new Wells Fargo
runs a close second to Bank of America in Nevada deposits. Third place will go to First
Security Bank, which expects to merge with Zions Bancorporation, the owner of Nevada State Bank. Nevada State and Pioneer Citizens Bank merged this year. Community banks continue to be formed.
Mortgage industry rocked
7) Many investors are still waiting to recover some of their investments through
failed Harley Harmon Mortgage, which the state shut down in late 1997. The state
Financial Institutions Division seized first Del Mar Mortgage and then Interstate
Mortgage Group -- two firms that lend investors' money to developers and home
builders.
Michael Shustek's Del Mar, however, challenged the state regulators in court and
won. Del Mar said state investigators could find no financial difficulties that would
prevent its continued operation.
Interstate Mortgage, which had $140 million in outstanding mortgage loans, was
insolvent when the state seized control in November.
Observers were waiting to see whether Financial Commissioner Scott Walshaw would put Interstate Mortgage into receivership or return control to owner David Ferradino.
Home building soars
8) The Southern Nevada Home Builders Association was "cautiously optimistic"
that the industry would set a record for new home sales this year, said Monica Caruso,
association spokeswoman.
The trade association expects the total to top 21,000, exceeding the record of 20,229 set in 1998. The association reported new home sales were up 6 percent at the end of October.
The median price was $143,900, up 8 percent from a year ago, but builders also are encountering higher costs, including fees. Residential land cost $100,000 an acre,
up from $50,000 five years ago, Caruso said.
Sierra Pacific, Nevada Power
9) Sierra Pacific Resources of Reno and Nevada Power Co. of Las Vegas completed a $2.5 billion merger.
Four months later, the combined company, which retained the Sierra name, announced an agreement to buy Portland General Electric from Enron Corp. for $3.1 billion. The merger deals came as Nevada prepared to deregulate its electric utility industry and open it to competition starting March 1.
Nevada Power and its sister subsidiary, Sierra Pacific Power, plan to become
"wires" companies that provide access to their transmission and distribution lines to
competitors.
Sierra Pacific Resources also intends to compete with newcomers in the retail sale
of power, but it agreed to sell the utilities' power plants in obtaining merger approval from the Public Utilities Commission.
Southwest Gas Corp. of Las Vegas obtained PUC approval to be acquired by Oneok of Tulsa, Okla., for $1.77 billion, but the merger partners met regulatory opposition in Arizona.
The state Legislature amended its electric deregulation law. The PUC, the utilities
and interested parties continued their work to bring competition to the industry by
March 1. Issues include a record $110 million, Nevada Power rate case that would
boost residential rates by 15 percent.
BLM land sales
10) The Bureau of Land Management sold the first 20 parcels from 27,000 acres of
federal land in the valley that Congress earmarked for sale. The first sales raised $9.4 million.
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