WEBVTT 00:00:00.000 --> 00:00:06.649 Welcome to the 37th annual Las Vegas 00:00:06.649 --> 00:00:07.790 Perspective. 00:00:07.790 --> 00:00:10.549 My name is Jonas Peterson. I'm the CEO of 00:00:10.549 --> 00:00:12.860 the Las Vegas Global Economic Alliance, 00:00:12.860 --> 00:00:16.040 and I am so excited. I am honored to be 00:00:16.040 --> 00:00:19.220 your host this morning. Truth is, this is 00:00:19.220 --> 00:00:23.090 my favorite event of the entire year 00:00:23.090 --> 00:00:26.480 And thanks to your support, thanks to 00:00:26.480 --> 00:00:29.390 your overwhelming support this turned 00:00:29.390 --> 00:00:31.070 out to be a really hot ticket this year 00:00:31.070 --> 00:00:33.410 I don't know if you guys saw this but we 00:00:33.410 --> 00:00:36.530 sold out not a week ahead of time, not 00:00:36.530 --> 00:00:40.570 two weeks, but over a month in advance, 00:00:40.570 --> 00:00:45.650 right? is that worth thank you thank you 00:00:45.650 --> 00:00:48.170 not only that but I'm glad you guys are 00:00:48.170 --> 00:00:49.610 here we had to turn away around a 00:00:49.610 --> 00:00:51.980 hundred that wanted to be with us this 00:00:51.980 --> 00:00:53.900 morning so congratulations to you for 00:00:53.900 --> 00:00:56.330 making the cut early thank you for 00:00:56.330 --> 00:00:58.880 coming out but seriously this tells us 00:00:58.880 --> 00:01:01.790 two things one we're probably going to 00:01:01.790 --> 00:01:03.920 need to look at a bigger room next year 00:01:03.920 --> 00:01:07.130 and two more importantly that we're on 00:01:07.130 --> 00:01:10.160 the right track to deliver on the brand 00:01:10.160 --> 00:01:12.410 promise for perspective that brand 00:01:12.410 --> 00:01:13.970 promise is to be Southern Nevada's 00:01:13.970 --> 00:01:16.520 premier source for community and 00:01:16.520 --> 00:01:19.360 economic information analysis and 00:01:19.360 --> 00:01:23.210 forecasting now for this morning we've 00:01:23.210 --> 00:01:24.590 been working with our perspective 00:01:24.590 --> 00:01:27.740 Council to raise the bar once again and 00:01:27.740 --> 00:01:30.080 I am excited for what we have in store 00:01:30.080 --> 00:01:32.270 for you. Let me tell you a little bit 00:01:32.270 --> 00:01:34.909 about what we have planned. It starts 00:01:34.909 --> 00:01:37.760 with the prospective data book that you 00:01:37.760 --> 00:01:39.020 received when you came in this morning. 00:01:39.020 --> 00:01:41.600 In that book, you will find a 00:01:41.600 --> 00:01:43.909 comprehensive overview of the market as 00:01:43.909 --> 00:01:46.820 it exists today. It's jam-packed with 00:01:46.820 --> 00:01:50.000 information and statistics that you need 00:01:50.000 --> 00:01:52.840 to know to understand our community, our 00:01:52.840 --> 00:01:56.450 economy and where it's going. That's just 00:01:56.450 --> 00:01:59.570 the beginning. This year, we put in new 00:01:59.570 --> 00:02:01.640 content from dozens of community and 00:02:01.640 --> 00:02:03.890 business leaders so that you can hear in 00:02:03.890 --> 00:02:07.490 their own words about major projects and 00:02:07.490 --> 00:02:09.139 priorities that they expect for the next 00:02:09.139 --> 00:02:11.030 12 months. These are the big 00:02:11.030 --> 00:02:12.700 organizations in our reach. 00:02:12.700 --> 00:02:15.280 fFom higher education to our cities to 00:02:15.280 --> 00:02:18.060 our TC to the Water Authority, and much 00:02:18.060 --> 00:02:21.580 more. In addition, in the book, we've 00:02:21.580 --> 00:02:24.700 retooled our polling to do a deeper dive 00:02:24.700 --> 00:02:26.920 into the attitudes and opinions of the 00:02:26.920 --> 00:02:29.200 Southern Nevada workforce. We want you to 00:02:29.200 --> 00:02:30.489 be able to understand what the business 00:02:30.489 --> 00:02:32.950 community is thinking on key topics, 00:02:32.950 --> 00:02:35.560 sometimes controversial topics like 00:02:35.560 --> 00:02:38.380 marijuana, stadium development, minimum 00:02:38.380 --> 00:02:43.239 wage and much more. Also in the book, 00:02:43.239 --> 00:02:45.790 you got forecast content where we pull 00:02:45.790 --> 00:02:47.349 in subject matter. Experts, 00:02:47.349 --> 00:02:49.690 dozens of subject matter experts, and ask 00:02:49.690 --> 00:02:51.790 them to give their prediction on what's 00:02:51.790 --> 00:02:54.099 going to happen in the economy over the 00:02:54.099 --> 00:02:56.470 next 12 months. All that packed into the 00:02:56.470 --> 00:02:59.260 book. And if we can advance, all right? So 00:02:59.260 --> 00:03:01.420 you starts with the book during the 00:03:01.420 --> 00:03:03.400 event today. We've got a powerhouse 00:03:03.400 --> 00:03:05.470 lineup for you of speakers that are 00:03:05.470 --> 00:03:07.260 going to do a deep dive into our economy 00:03:07.260 --> 00:03:09.849 into advancing the business of health 00:03:09.849 --> 00:03:12.519 care and a look at the future of gaming. 00:03:12.519 --> 00:03:15.700 This is a powerhouse group of 00:03:15.700 --> 00:03:18.819 speakers, and it doesn't stop there. 00:03:18.819 --> 00:03:21.370 As you know with perspective, we want you 00:03:21.370 --> 00:03:22.859 to be equipped with the latest 00:03:22.859 --> 00:03:25.269 information and analysis throughout the 00:03:25.269 --> 00:03:27.760 year. So is our gift to you, we're going 00:03:27.760 --> 00:03:29.590 to be sending each of you that are here 00:03:29.590 --> 00:03:32.500 this morning, quarterly newsletters with 00:03:32.500 --> 00:03:35.079 more data analysis on topics like 00:03:35.079 --> 00:03:37.030 education, infrastructure and 00:03:37.030 --> 00:03:40.769 competitiveness throughout the year. And 00:03:40.769 --> 00:03:45.010 we're also extending your access to the 00:03:45.010 --> 00:03:46.480 LVG, a data portal. 00:03:46.480 --> 00:03:47.920 You probably remember last year, we 00:03:47.920 --> 00:03:50.019 showcased this new product. This is an 00:03:50.019 --> 00:03:53.519 online tool that has real-time data 00:03:53.519 --> 00:03:55.900 thousands of indicators and data points 00:03:55.900 --> 00:03:57.549 all updated in real time along with 00:03:57.549 --> 00:04:00.220 community mapping and much more. This is 00:04:00.220 --> 00:04:01.959 our gift to you as well. Where if you're 00:04:01.959 --> 00:04:03.370 here this morning, we want you to be able 00:04:03.370 --> 00:04:04.780 to have this. So you will receive an 00:04:04.780 --> 00:04:07.120 email with a one-year subscription to 00:04:07.120 --> 00:04:11.790 the data portal and one last thing as 00:04:11.790 --> 00:04:14.049 you leave this morning, we have the 00:04:14.049 --> 00:04:15.910 latest project from our research center. 00:04:15.910 --> 00:04:17.680 We're calling it the Southern Nevada 00:04:17.680 --> 00:04:20.680 community map. This is not an ordinary 00:04:20.680 --> 00:04:23.320 map, you'll grab it on your way out. 00:04:23.320 --> 00:04:26.290 I want to tell you how it was created 00:04:26.290 --> 00:04:28.660 We approached our friends that applied 00:04:28.660 --> 00:04:31.630 analysis, and we asked them, "Can you help 00:04:31.630 --> 00:04:35.650 us make a map that tells the future?" We 00:04:35.650 --> 00:04:38.560 expected them to say no because that's 00:04:38.560 --> 00:04:41.710 that's a ridiculous request. They said, 00:04:41.710 --> 00:04:44.500 "Yes." They always do and the result is a 00:04:44.500 --> 00:04:47.140 map that showcases the billions of 00:04:47.140 --> 00:04:49.330 dollars of capital investment that we 00:04:49.330 --> 00:04:51.820 expect to move forward along the Strip. 00:04:51.820 --> 00:04:53.860 The billions more that's moving in our 00:04:53.860 --> 00:04:55.810 economy through private businesses 00:04:55.810 --> 00:04:57.550 around the region, new school 00:04:57.550 --> 00:05:00.550 construction key assets, and so much more. 00:05:00.550 --> 00:05:02.650 Take a close look at that map 00:05:02.650 --> 00:05:04.300 when you receive it on the way out. I 00:05:04.300 --> 00:05:08.310 think you will agree that it is awesome. 00:05:08.310 --> 00:05:10.930 Now, we hope all this content it's 00:05:10.930 --> 00:05:13.390 designed to add value to you so that 00:05:13.390 --> 00:05:14.590 through the upcoming year you can make 00:05:14.590 --> 00:05:17.980 better decisions at LVG, we believe that 00:05:17.980 --> 00:05:20.200 information is the currency of economic 00:05:20.200 --> 00:05:22.000 development and when we can equip 00:05:22.000 --> 00:05:24.640 leaders like you with better information, 00:05:24.640 --> 00:05:28.000 we as a team will make better decisions, 00:05:28.000 --> 00:05:30.340 have a stronger community and have a 00:05:30.340 --> 00:05:34.060 stronger economy. That's what perspective 00:05:34.060 --> 00:05:38.140 is all about. All right. So again, thank 00:05:38.140 --> 00:05:40.300 you for coming this morning. I want to 00:05:40.300 --> 00:05:44.110 recognize a very special group. Make sure 00:05:44.110 --> 00:05:46.330 I get this right so pull out the cards 00:05:46.330 --> 00:05:48.760 for this. This is our Perspective Council. 00:05:48.760 --> 00:05:51.460 The Perspective Council is responsible 00:05:51.460 --> 00:05:53.950 for leading everything you see here, the 00:05:53.950 --> 00:05:58.090 event, the speakers, the content. They're 00:05:58.090 --> 00:05:59.680 not only sponsors but they're involved 00:05:59.680 --> 00:06:01.930 in the process. There's an exceptional 00:06:01.930 --> 00:06:04.090 group and I want to recognize them and 00:06:04.090 --> 00:06:05.560 then give them each a big round of 00:06:05.560 --> 00:06:08.500 applause. It starts with Cox 00:06:08.500 --> 00:06:11.200 Communications, Derek Hill and your team. 00:06:11.200 --> 00:06:12.760 could you guys stand up? Where you guys 00:06:12.760 --> 00:06:15.419 at? I just... 00:06:18.330 --> 00:06:21.400 So let me tell you just a little bit. 00:06:21.400 --> 00:06:26.409 Derek is our vice chairman at LVGEA. Cox 00:06:26.409 --> 00:06:29.250 is our pinnacle level investor and 00:06:29.250 --> 00:06:32.319 they're all two on the prospective 00:06:32.319 --> 00:06:34.750 Council. An amazing group. Thank you so 00:06:34.750 --> 00:06:37.030 much. We appreciate you guys. Derek, you 00:06:37.030 --> 00:06:39.639 are amazing. Thank you. 8 News Now 00:06:39.639 --> 00:06:41.620 Lisa Howfield and the team does, stand 00:06:41.620 --> 00:06:44.250 up for you. There you are 00:06:44.250 --> 00:06:49.449 stand up and take a look at the crowd 00:06:49.449 --> 00:06:51.580 that Lisa brings with. I believe this is 00:06:51.580 --> 00:06:54.759 the largest group, you know, from 8 News 00:06:54.759 --> 00:06:56.319 now that we have a perspective this 00:06:56.319 --> 00:06:58.210 morning. So thank you so much. We 00:06:58.210 --> 00:06:59.259 appreciate it. 00:06:59.259 --> 00:07:02.349 Awesome at Nevada State Bank, Shannon 00:07:02.349 --> 00:07:05.740 Petersen and the team, many times they're 00:07:05.740 --> 00:07:11.080 there. Shannon's one of our new board 00:07:11.080 --> 00:07:12.879 members at LVGA. 00:07:12.879 --> 00:07:15.340 Thank you so much for this court. A 00:07:15.340 --> 00:07:17.409 champion for our community at Wells 00:07:17.409 --> 00:07:20.080 Fargo, Curt Clawson and the team. Stand on 00:07:20.080 --> 00:07:22.409 up, guys. 00:07:26.310 --> 00:07:29.440 Curt is on our executive committee at LVGA. 00:07:29.440 --> 00:07:32.380 A rock star for this community always 00:07:32.380 --> 00:07:34.710 saying as. Curt, you are amazing. Thank you, 00:07:34.710 --> 00:07:38.170 and last but not least. The team at 00:07:38.170 --> 00:07:41.320 Applied Analysis guys sent up Jeremy, 00:07:41.320 --> 00:07:42.520 Brian, 00:07:42.520 --> 00:07:49.930 Rachel, Melanie. The team, this is our 00:07:49.930 --> 00:07:53.070 go-to group this is the brains behind 00:07:53.070 --> 00:07:55.420 perspective. Perspective, I want you know, 00:07:55.420 --> 00:07:57.460 they always say yes. They're always 00:07:57.460 --> 00:07:59.200 striving to make this better, and they 00:07:59.200 --> 00:08:01.420 blow us away when we ask for crazy 00:08:01.420 --> 00:08:03.280 research requests. They find a way to 00:08:03.280 --> 00:08:05.590 make it happen. We love you guys. Thank 00:08:05.590 --> 00:08:08.800 you so much, all right? So that is our 00:08:08.800 --> 00:08:11.020 perspective council. We also got a group 00:08:11.020 --> 00:08:12.670 of in-kind investors that stepped up 00:08:12.670 --> 00:08:14.260 this year. Let me read them off. We'll 00:08:14.260 --> 00:08:15.790 give them a round of applause at the end 00:08:15.790 --> 00:08:17.230 for helping us get the word out about 00:08:17.230 --> 00:08:20.230 this event. We got KNPR, Lotus 00:08:20.230 --> 00:08:23.260 Broadcasting, Elite Media and Vegas PBS. 00:08:23.260 --> 00:08:24.730 Let's give a round of applause for this 00:08:24.730 --> 00:08:26.910 group. 00:08:29.430 --> 00:08:31.810 Thank you. There's a lot of elected 00:08:31.810 --> 00:08:33.880 officials in the room. I caught a few of 00:08:33.880 --> 00:08:35.500 you as you're coming in. So this 00:08:35.500 --> 00:08:37.179 is probably an incomplete list, but I'm 00:08:37.179 --> 00:08:38.080 going to give it a shot. 00:08:38.080 --> 00:08:40.480 We've got mayor elect Deborah March from 00:08:40.480 --> 00:08:43.960 Henderson here. Stand on up. Councilman 00:08:43.960 --> 00:08:46.180 John Mars I believe is with us. This 00:08:46.180 --> 00:08:48.480 morning councilman Dan Stewart, 00:08:48.480 --> 00:08:50.950 councilman Stavros Anthony and 00:08:50.950 --> 00:08:52.710 Commissioner Susan Prager. 00:08:52.710 --> 00:08:55.990 Welcome elected officials. Stand on up if 00:08:55.990 --> 00:09:02.560 I missed anybody all right now. It's the 00:09:02.560 --> 00:09:04.060 fun part. We get to kick off the party. 00:09:04.060 --> 00:09:06.250 We're going to invite up our first panel 00:09:06.250 --> 00:09:08.680 before I do that, though, I want to remind 00:09:08.680 --> 00:09:11.410 you to join the conversation on Twitter 00:09:11.410 --> 00:09:14.950 #LVperspective. If you do that, I 00:09:14.950 --> 00:09:16.540 think there's even on the the tent on 00:09:16.540 --> 00:09:17.970 your table. You can ask questions 00:09:17.970 --> 00:09:20.230 following our panel. You can be a part of 00:09:20.230 --> 00:09:21.610 the discussion. In fact. I think we're 00:09:21.610 --> 00:09:23.740 going to throw up a live Twitter wall in 00:09:23.740 --> 00:09:25.480 just a little bit, so you will see that 00:09:25.480 --> 00:09:28.150 firsthand. Here's our first panel. It's on 00:09:28.150 --> 00:09:30.910 advancing the business of healthcare. Why? 00:09:30.910 --> 00:09:32.800 Because there are amazing things 00:09:32.800 --> 00:09:35.140 happening in this, in this industry, right? 00:09:35.140 --> 00:09:36.880 Now, in fact, if you look at our economy, 00:09:36.880 --> 00:09:39.360 it's the fastest jobs reducing segment. 00:09:39.360 --> 00:09:41.950 There's major projects plan that you're 00:09:41.950 --> 00:09:44.140 going to hear about and to tell you 00:09:44.140 --> 00:09:45.880 about that. We've got a rock star group 00:09:45.880 --> 00:09:48.160 of panelists. Let's start it off. 00:09:48.160 --> 00:09:50.410 Betsy Fretwell from the city of Las 00:09:50.410 --> 00:09:52.960 Vegas city manager, Betsy, could you come 00:09:52.960 --> 00:09:55.230 join us? 00:09:56.660 --> 00:10:00.560 From UNLV, we got the founding dean of 00:10:00.560 --> 00:10:02.590 the medical school, Dr. Barbara Atkinson. 00:10:02.590 --> 00:10:04.240 Welcome. Come join us. 00:10:04.240 --> 00:10:09.730 [Applause] 00:10:09.730 --> 00:10:13.250 From Toro University, the one and only, 00:10:13.250 --> 00:10:26.540 Shelley Berkley, yeah. 00:10:26.540 --> 00:10:29.300 And Doug Geinzer from Las Vegas HEALS. A man 00:10:29.300 --> 00:10:30.890 who knows a lot about healthcare. Welcome. 00:10:30.890 --> 00:10:42.320 Welcome. All right, all right. Good morning. 00:10:42.320 --> 00:10:46.790 How are we doing? Excellent. So that's big. 00:10:46.790 --> 00:10:49.310 If we could, I would like to kick it off 00:10:49.310 --> 00:10:51.620 with you. Have them start us off, and 00:10:51.620 --> 00:10:53.600 here's the question? Could you give us 00:10:53.600 --> 00:10:54.830 the big picture? Why is 00:10:54.830 --> 00:10:56.810 healthcare important to growing our 00:10:56.810 --> 00:11:00.020 economy and also what is the city of Las 00:11:00.020 --> 00:11:02.840 Vegas doing in particular to grow this 00:11:02.840 --> 00:11:06.370 industry? Thank you, good morning, everyone. 00:11:06.370 --> 00:11:09.050 It's a real pleasure to be here. 00:11:09.050 --> 00:11:11.120 Healthcare is a critical industry for us. 00:11:11.120 --> 00:11:12.890 One: we're underweighted in it and 00:11:12.890 --> 00:11:15.020 everyone knows that when we do our 00:11:15.020 --> 00:11:17.600 surveys at the city of Las Vegas that 00:11:17.600 --> 00:11:19.640 there is always a concern about access 00:11:19.640 --> 00:11:23.750 and quality. And so we know that we have 00:11:23.750 --> 00:11:26.450 incredible quality, here in town, but we 00:11:26.450 --> 00:11:28.970 do have an access issue, and many of the 00:11:28.970 --> 00:11:30.530 panelists who are here with me today, are 00:11:30.530 --> 00:11:33.050 working to improve that access by 00:11:33.050 --> 00:11:34.850 creating new doctors and new medical 00:11:34.850 --> 00:11:36.550 professionals that will help us. 00:11:36.550 --> 00:11:40.220 It also helps bolster our economy. These 00:11:40.220 --> 00:11:42.110 are good-paying jobs people, who are well 00:11:42.110 --> 00:11:45.230 educated and they help us grow and 00:11:45.230 --> 00:11:47.630 diversify. And that's been a critical 00:11:47.630 --> 00:11:50.870 component for the city of Las Vegas. Most 00:11:50.870 --> 00:11:53.180 recently, we put together a medical 00:11:53.180 --> 00:11:56.120 district advisory board, about three or 00:11:56.120 --> 00:11:57.740 four years ago, at the request of 00:11:57.740 --> 00:11:59.840 Councilman Tarkanian and Mayor Carolyn 00:11:59.840 --> 00:12:02.840 Goodman. We did that because we have one 00:12:02.840 --> 00:12:05.060 of the single largest footprints of 00:12:05.060 --> 00:12:07.250 medical care, and service delivery in the 00:12:07.250 --> 00:12:10.490 middle of the city of Las Vegas. So, of 00:12:10.490 --> 00:12:13.390 the distribution of healthcare 00:12:13.390 --> 00:12:17.000 providers. In this community, we represent 00:12:17.000 --> 00:12:19.910 64% of them right? In the medical 00:12:19.910 --> 00:12:21.680 district in the heart of the city of Las 00:12:21.680 --> 00:12:23.600 Vegas. And if you're trying to figure out 00:12:23.600 --> 00:12:25.370 where that medical district is, it's 00:12:25.370 --> 00:12:28.310 right by UMC. So, if you can picture that 00:12:28.310 --> 00:12:31.880 right along Charleston, near Rancho, near 00:12:31.880 --> 00:12:35.029 I-15. And also the council embarked upon 00:12:35.029 --> 00:12:37.940 a plan to expand that district. And we've 00:12:37.940 --> 00:12:41.330 added over 400 acres to that 200 acres, 00:12:41.330 --> 00:12:43.010 so that we have plenty of room for 00:12:43.010 --> 00:12:46.570 expansion. The council also adopted an 00:12:46.570 --> 00:12:49.610 incredible master plan for that area in 00:12:49.610 --> 00:12:52.010 partnership with all the institutional 00:12:52.010 --> 00:12:55.430 providers in that 200 original acres, and 00:12:55.430 --> 00:12:58.220 the expanded area that will bring us 00:12:58.220 --> 00:13:00.770 over 600 acres of medical district 00:13:00.770 --> 00:13:03.350 development. This is critically important 00:13:03.350 --> 00:13:05.390 because if the city is investing wisely 00:13:05.390 --> 00:13:08.589 in infrastructure, and all of the 00:13:08.589 --> 00:13:11.240 providers in the area are partnering on 00:13:11.240 --> 00:13:13.130 things that have a common good to them. 00:13:13.130 --> 00:13:16.310 So not programmatic decisions not 00:13:16.310 --> 00:13:19.160 whether or not Dr. Atkinson has 60 or 80 00:13:19.160 --> 00:13:22.130 students per class, but really how are we 00:13:22.130 --> 00:13:24.890 providing Street networks and a variety 00:13:24.890 --> 00:13:26.630 of other infrastructure that helps drive 00:13:26.630 --> 00:13:27.500 the cost down 00:13:27.500 --> 00:13:29.240 to providing quality and affordable 00:13:29.240 --> 00:13:31.970 healthcare to our community. It can 00:13:31.970 --> 00:13:34.010 happen in the health district in the 00:13:34.010 --> 00:13:36.170 medical district through our healthcare 00:13:36.170 --> 00:13:38.720 providers. We really feel like this is an 00:13:38.720 --> 00:13:40.760 important play for the city's economic 00:13:40.760 --> 00:13:42.770 development plan, and that's what we have 00:13:42.770 --> 00:13:44.630 been focusing on to make a huge 00:13:44.630 --> 00:13:46.970 difference for our entire community. And 00:13:46.970 --> 00:13:49.250 we believe that we can be the hub. This 00:13:49.250 --> 00:13:50.570 doesn't replace what needs to be 00:13:50.570 --> 00:13:52.310 happening throughout the community. This 00:13:52.310 --> 00:13:54.470 accentuates what needs to be happening 00:13:54.470 --> 00:13:56.540 throughout the community and creates a 00:13:56.540 --> 00:13:58.490 hub in the middle of the city where 00:13:58.490 --> 00:14:00.860 everybody can get to it for those things 00:14:00.860 --> 00:14:02.570 that we can only have one up. For 00:14:02.570 --> 00:14:04.459 instance, and those are the kinds of 00:14:04.459 --> 00:14:05.810 things that we've been pursuing at the 00:14:05.810 --> 00:14:08.839 city, we have great hopes for the medical 00:14:08.839 --> 00:14:10.250 school and what it brings to that 00:14:10.250 --> 00:14:12.020 district. We're thrilled that the Medical 00:14:12.020 --> 00:14:13.490 Education building is going to be there, 00:14:13.490 --> 00:14:15.470 and we have high hopes for additional 00:14:15.470 --> 00:14:17.390 expansion in that area as the medical 00:14:17.390 --> 00:14:19.400 school grows. Those are the things we're 00:14:19.400 --> 00:14:21.130 focusing in on at the city of Las Vegas 00:14:21.130 --> 00:14:23.600 Beautiful. Dr. Atkinson, your 00:14:23.600 --> 00:14:27.170 up next. We know that the, our first class 00:14:27.170 --> 00:14:28.730 at the School of Medicine is coming 00:14:28.730 --> 00:14:30.829 online this summer. Could you give us a 00:14:30.829 --> 00:14:33.259 taste of the kind of? What's next? What 00:14:33.259 --> 00:14:34.759 are the major steps? What are you excited 00:14:34.759 --> 00:14:37.579 about? Well, I'm excited about it all or 00:14:37.579 --> 00:14:40.370 what I'm excited about the class. First, I 00:14:40.370 --> 00:14:43.310 just have to tell you quickly, it's sixty 00:14:43.310 --> 00:14:45.740 students. They're starting on July 17th, 00:14:45.740 --> 00:14:48.529 they're starting with EMT training, but 00:14:48.529 --> 00:14:50.630 of those 60 students. They are all from 00:14:50.630 --> 00:14:53.000 Nevada or they have very strong ties to 00:14:53.000 --> 00:14:55.430 Nevada we just interviewed Nevada 00:14:55.430 --> 00:14:57.800 students. We had over 900 applicants and 00:14:57.800 --> 00:15:00.410 300 of them were from Nevada, so we 00:15:00.410 --> 00:15:02.420 didn't even have to go beyond that and 00:15:02.420 --> 00:15:05.839 that's exciting in itself so they're 00:15:05.839 --> 00:15:08.000 getting ready to start what we're really 00:15:08.000 --> 00:15:11.389 working on this summer, too, is setting up 00:15:11.389 --> 00:15:14.269 the clinical Enterprise. So, on July 1st, 00:15:14.269 --> 00:15:17.329 the people who were the faculty at UNR 00:15:17.329 --> 00:15:19.790 School of Medicine, which who are 00:15:19.790 --> 00:15:21.889 practicing in Las Vegas are all moving 00:15:21.889 --> 00:15:24.920 over to be UNLV faculty. So that's about 00:15:24.920 --> 00:15:26.839 a hundred and twenty-five physicians, and 00:15:26.839 --> 00:15:31.100 another 25 or so administrators and so. 00:15:31.100 --> 00:15:33.290 They practice in the medical district 00:15:33.290 --> 00:15:34.819 mostly. Although, they have a few other 00:15:34.819 --> 00:15:37.130 sites, as well. They'll be practicing 00:15:37.130 --> 00:15:39.920 under UNLV medicine starting then. And so, 00:15:39.920 --> 00:15:41.959 we have to convert those practices into 00:15:41.959 --> 00:15:46.160 a whole different level of care. A level 00:15:46.160 --> 00:15:47.990 of care that really is one that you 00:15:47.990 --> 00:15:50.389 would be proud to come to. So, that's a 00:15:50.389 --> 00:15:53.000 major effort that's going on right now. 00:15:53.000 --> 00:15:55.160 Recontracting everything. Everything 00:15:55.160 --> 00:15:58.040 from getting telephones, EMRs, patient 00:15:58.040 --> 00:16:00.529 records, ready to move over. It's a big 00:16:00.529 --> 00:16:02.720 deal to move that many people besides 00:16:02.720 --> 00:16:05.329 them. Moving over, they have 300 practice 00:16:05.329 --> 00:16:07.399 plan employees that front desk, the 00:16:07.399 --> 00:16:09.290 billing, people, everybody else. That goes 00:16:09.290 --> 00:16:11.029 with the practice . They're coming over, 00:16:11.029 --> 00:16:13.819 and 300 residents are moving over to 00:16:13.819 --> 00:16:17.149 become, you know, UNLV residents. So we're 00:16:17.149 --> 00:16:19.970 going from having about 80 faculty and 00:16:19.970 --> 00:16:22.069 staff in the School of Medicine to over 00:16:22.069 --> 00:16:25.759 800 on July 1st. So that's a pretty big 00:16:25.759 --> 00:16:29.000 deal. That's about a quarter of what UNLV 00:16:29.000 --> 00:16:31.399 is altogether. So, adding that many new 00:16:31.399 --> 00:16:34.880 people is, is really exciting but the 00:16:34.880 --> 00:16:36.800 practice is going to be very exciting, 00:16:36.800 --> 00:16:38.390 but it'll take us a little while to get 00:16:38.390 --> 00:16:40.430 it to where it needs to be beside that. 00:16:40.430 --> 00:16:42.830 We're working on starting that medical 00:16:42.830 --> 00:16:44.570 education building, and I have to say, the 00:16:44.570 --> 00:16:46.820 city has been an incredible partner with 00:16:46.820 --> 00:16:49.160 us on this and the county has as well, 00:16:49.160 --> 00:16:52.130 but County gave us 9 acres of land in 00:16:52.130 --> 00:16:54.350 the medical district. We've already moved 00:16:54.350 --> 00:16:56.450 all our current faculty to the medical 00:16:56.450 --> 00:16:58.519 district so we are clearly in the 00:16:58.519 --> 00:17:01.010 medical district. Now, we are in the 00:17:01.010 --> 00:17:03.050 second phase of design of the building 00:17:03.050 --> 00:17:05.240 whereas you've probably read in the 00:17:05.240 --> 00:17:07.040 papers, looking for our hundred million 00:17:07.040 --> 00:17:08.780 dollar donor. We hope we'll be able to 00:17:08.780 --> 00:17:10.910 say we have that. We hope we'll be able 00:17:10.910 --> 00:17:12.980 to actually break ground on the building 00:17:12.980 --> 00:17:17.089 I hope in the fall. We'll see. So that's 00:17:17.089 --> 00:17:19.640 going on, and I think those are probably 00:17:19.640 --> 00:17:22.309 the major efforts. We do have a research 00:17:22.309 --> 00:17:23.809 effort going on, and that's one that's 00:17:23.809 --> 00:17:25.939 really important for the community. It's 00:17:25.939 --> 00:17:28.300 sort of trailing to a certain degree. 00:17:28.300 --> 00:17:31.070 Everything else, because we did education 00:17:31.070 --> 00:17:33.890 first, clinical second and research third. 00:17:33.890 --> 00:17:37.450 But it's coming, we just celebrated a big 00:17:37.450 --> 00:17:41.750 Mountain West conglomeration of people 00:17:41.750 --> 00:17:43.550 who are all part of a research team that 00:17:43.550 --> 00:17:44.900 works together to build research 00:17:44.900 --> 00:17:46.790 infrastructure, and that's what's really 00:17:46.790 --> 00:17:49.130 going to drive the economic piece of the 00:17:49.130 --> 00:17:51.530 healthcare district. And I'll just say 00:17:51.530 --> 00:17:54.380 that the projection of a Medical School 00:17:54.380 --> 00:17:58.760 in a help, in a medical district with 00:17:58.760 --> 00:18:00.710 everything. It brings is something like a 00:18:00.710 --> 00:18:03.530 3.6 billion dollar a year. A 00:18:03.530 --> 00:18:06.440 year economic benefit to the community, 00:18:06.440 --> 00:18:08.570 and should have something like 00:18:08.570 --> 00:18:11.240 twenty-two thousand new jobs within the 00:18:11.240 --> 00:18:13.790 next 15 years. So that's what we're up to 00:18:13.790 --> 00:18:16.669 awesome all right? Shelley I'm coming 00:18:16.669 --> 00:18:18.890 your way actually, for the next one. So 00:18:18.890 --> 00:18:20.720 Shelly, you have a unique perspective, 00:18:20.720 --> 00:18:22.429 right? You've been involved in the 00:18:22.429 --> 00:18:24.770 highest levels of government, and in 00:18:24.770 --> 00:18:27.530 medical education, I want to ask for your 00:18:27.530 --> 00:18:29.540 thoughts on one of those topics that's 00:18:29.540 --> 00:18:31.580 critical, involves both those graduates in 00:18:31.580 --> 00:18:33.559 Medical Education. I know our state 00:18:33.559 --> 00:18:35.360 legislature in particular is taking a look 00:18:35.360 --> 00:18:38.000 at this. What is it? Why do we need more 00:18:38.000 --> 00:18:39.679 of it? Could you give us your thoughts on 00:18:39.679 --> 00:18:41.929 that? Yeah, thank you very much. And thanks 00:18:41.929 --> 00:18:44.559 for having me. Good morning, everybody. 00:18:44.559 --> 00:18:47.750 GME is a very important issue and very 00:18:47.750 --> 00:18:50.420 critical to the state of Nevada. 00:18:50.420 --> 00:18:53.900 We are going to attract doctors and keep 00:18:53.900 --> 00:18:57.800 them here when you graduate medical 00:18:57.800 --> 00:18:59.840 schools. You still cannot practice 00:18:59.840 --> 00:19:01.910 medicine. You have a minimum of three 00:19:01.910 --> 00:19:04.130 more years of training which is your 00:19:04.130 --> 00:19:07.580 residency graduates medical education 00:19:07.580 --> 00:19:11.570 now. Years ago, its graduate medical 00:19:11.570 --> 00:19:14.840 education dollars. How do we pay for GME, 00:19:14.840 --> 00:19:17.450 comes out of Medicare funding, from the 00:19:17.450 --> 00:19:21.320 feds. Years ago, it was capped, which means 00:19:21.320 --> 00:19:24.050 if you're an East Coast state that has 00:19:24.050 --> 00:19:27.050 lots of GME. You continued getting 00:19:27.050 --> 00:19:29.660 funding for a growth state like Nevada, 00:19:29.660 --> 00:19:32.360 where we've had a huge population 00:19:32.360 --> 00:19:35.480 explosion. It's been devastating to us, 00:19:35.480 --> 00:19:38.510 because the GME is cap. There's no 00:19:38.510 --> 00:19:41.180 funding from the feds, so are very 00:19:41.180 --> 00:19:44.020 limited funding, from the feds so 00:19:44.020 --> 00:19:46.460 understanding that you need three more 00:19:46.460 --> 00:19:48.950 years of training before you can 00:19:48.950 --> 00:19:51.860 practice medicine. It is essential that 00:19:51.860 --> 00:19:55.880 the state of Nevada create its own GME. 00:19:55.880 --> 00:19:59.210 And so the governor, and I am very high 00:19:59.210 --> 00:20:01.610 on Governor Sandoval, for a whole host of 00:20:01.610 --> 00:20:05.810 reasons, but he understood that we needed 00:20:05.810 --> 00:20:08.900 to create and spend some money on the 00:20:08.900 --> 00:20:13.250 state level in order to create GME. So, 00:20:13.250 --> 00:20:17.030 last legislative session he ensured in 00:20:17.030 --> 00:20:19.690 his budget was a 10 million dollar 00:20:19.690 --> 00:20:23.000 appropriation to create primary care 00:20:23.000 --> 00:20:26.180 GME's. Why is that important? Because the 00:20:26.180 --> 00:20:28.520 greatest shortage of doctors. Although, we 00:20:28.520 --> 00:20:31.160 have shortages across the board, greatest 00:20:31.160 --> 00:20:34.210 shortage of doctors is primary care 00:20:34.210 --> 00:20:38.810 physicians. As consequently, we were able 00:20:38.810 --> 00:20:41.930 to utilize that ten million dollars, five 00:20:41.930 --> 00:20:44.300 million each year, of the biennium to 00:20:44.300 --> 00:20:47.810 create Graduate Medical Education. Now, in 00:20:47.810 --> 00:20:52.670 this legislative session, he again in his 00:20:52.670 --> 00:20:55.010 budget was another ten million dollars. 00:20:55.010 --> 00:20:57.560 I've been tracking it in the legislature 00:20:57.560 --> 00:21:00.580 and the legislature; I believe when their 00:21:00.580 --> 00:21:02.970 budget is put to bed the 00:21:02.970 --> 00:21:05.580 ten million dollars will survive, and we 00:21:05.580 --> 00:21:08.220 will be able to use it for GME it is 00:21:08.220 --> 00:21:11.220 very important that it stays in primary 00:21:11.220 --> 00:21:13.919 care because that is the greatest need 00:21:13.919 --> 00:21:15.510 in the state of Nevada. 00:21:15.510 --> 00:21:18.419 Let me quickly end with this, and it's 00:21:18.419 --> 00:21:21.480 easy to understand why is GME here and 00:21:21.480 --> 00:21:25.289 Nevada important because 70% of doctors 00:21:25.289 --> 00:21:27.990 end up practicing where they do their 00:21:27.990 --> 00:21:31.200 GME, their Graduate Medical Education. If 00:21:31.200 --> 00:21:33.750 we don't have enough Graduate Medical 00:21:33.750 --> 00:21:36.480 Education in the state of Nevada. These 00:21:36.480 --> 00:21:39.780 young men and women these future doctors 00:21:39.780 --> 00:21:42.929 end up going away, and unless they have a 00:21:42.929 --> 00:21:44.909 tie with the state of Nevada. They're not 00:21:44.909 --> 00:21:47.100 coming back, and it makes sense. They're 00:21:47.100 --> 00:21:48.929 making contacts in the medical community. 00:21:48.929 --> 00:21:50.429 They're getting married. They're 00:21:50.429 --> 00:21:52.919 establishing ties in the community that 00:21:52.919 --> 00:21:54.840 they're getting having their residency. 00:21:54.840 --> 00:21:58.980 And a simple way to understand this: Toro 00:21:58.980 --> 00:22:01.650 University graduates a hundred and 00:22:01.650 --> 00:22:04.650 thirty-five future doctors every year. 00:22:04.650 --> 00:22:07.950 We're very proud of that. We had 3700 00:22:07.950 --> 00:22:09.929 applications for a hundred and 00:22:09.929 --> 00:22:12.330 thirty-five slots this year. We can 00:22:12.330 --> 00:22:15.240 afford to be very selective of who we 00:22:15.240 --> 00:22:17.970 admit into our program. If we admit you, 00:22:17.970 --> 00:22:20.130 we expect you to graduate, and we're 00:22:20.130 --> 00:22:22.049 going to do everything we can to help 00:22:22.049 --> 00:22:26.850 you. We have 30 residences will 90 but 30, 00:22:26.850 --> 00:22:30.510 30, 30. Because it's 30, a year with valid 00:22:30.510 --> 00:22:33.419 with the valley health system that means 00:22:33.419 --> 00:22:36.630 that if we feel every residency with the 00:22:36.630 --> 00:22:40.049 Toro students. A hundred and five of my 00:22:40.049 --> 00:22:43.080 graduates of future doctors have to 00:22:43.080 --> 00:22:46.049 leave the state of Nevada in order to 00:22:46.049 --> 00:22:49.049 get their training. That is insane. And 00:22:49.049 --> 00:22:51.030 Barbara and I have talked about this. A 00:22:51.030 --> 00:22:53.549 lot of you could have a new medical school. 00:22:53.549 --> 00:22:55.470 You could have 20 new medical schools. 00:22:55.470 --> 00:22:57.840 We're all still competing for the same 00:22:57.840 --> 00:23:01.679 small number of residences. Until this 00:23:01.679 --> 00:23:04.650 stage gets more residences, we are not 00:23:04.650 --> 00:23:09.059 not going to be able to keep doctors 00:23:09.059 --> 00:23:11.880 here, and it's simple math. And it doesn't 00:23:11.880 --> 00:23:14.220 take a genius to figure this out. So if 00:23:14.220 --> 00:23:16.090 you ask, and maybe doing something to ask 00:23:16.090 --> 00:23:19.330 later, "What can I do?" Call your legislator. 00:23:19.330 --> 00:23:21.610 We know them. That's the beauty of Nevada 00:23:21.610 --> 00:23:24.309 tell them to make sure that GME money, 00:23:24.309 --> 00:23:27.669 primary care physicians is in the budget 00:23:27.669 --> 00:23:30.090 this year. So we can start more 00:23:30.090 --> 00:23:33.640 residences in the following few years so 00:23:33.640 --> 00:23:36.010 important, so important audience. So there. 00:23:36.010 --> 00:23:45.549 Thank you. All right, Doug. You're up next 00:23:45.549 --> 00:23:47.380 want to hop into your world for a little 00:23:47.380 --> 00:23:49.690 bit the audience when they leave today, 00:23:49.690 --> 00:23:50.830 they're going to look at that community 00:23:50.830 --> 00:23:52.690 map, and they're going to see hospitals, 00:23:52.690 --> 00:23:56.080 clinics springing up all over the valley. 00:23:56.080 --> 00:23:58.720 Could you tell us a little bit striving 00:23:58.720 --> 00:24:00.250 this trend? Maybe share a few examples. 00:24:00.250 --> 00:24:03.490 Sure. So it's a lot of things during the 00:24:03.490 --> 00:24:05.799 Great Recession. We went into that under 00:24:05.799 --> 00:24:08.380 bedded as a community. We just flat out 00:24:08.380 --> 00:24:10.750 did not have a bed enough beds to serve 00:24:10.750 --> 00:24:13.390 the community. The tear during that 00:24:13.390 --> 00:24:16.630 recession our unemployment rates went up. 00:24:16.630 --> 00:24:19.840 Therefore, our uninsured what not. So a 00:24:19.840 --> 00:24:21.580 lot of folks just didn't have access to 00:24:21.580 --> 00:24:25.750 care because of that we were the first 00:24:25.750 --> 00:24:28.179 state or the first republican governor 00:24:28.179 --> 00:24:30.070 that approved the expansion of Medicaid 00:24:30.070 --> 00:24:32.740 through the Affordable Care Act that 00:24:32.740 --> 00:24:35.679 brought in 300,000 new additionally 00:24:35.679 --> 00:24:39.340 insured so these 300,000 needed a place 00:24:39.340 --> 00:24:42.490 to access care and what that's it. Is it 00:24:42.490 --> 00:24:44.350 also provided a patient that would 00:24:44.350 --> 00:24:45.970 present themselves at the hospitals that 00:24:45.970 --> 00:24:49.600 now had a payer source not quite at the 00:24:49.600 --> 00:24:51.760 level that they need to to be profitable? 00:24:51.760 --> 00:24:53.620 But they had a payer source attached to 00:24:53.620 --> 00:24:56.049 them, so everybody started growing again. 00:24:56.049 --> 00:24:57.490 At the same time, some other things 00:24:57.490 --> 00:24:59.590 happen where they started. They corrected 00:24:59.590 --> 00:25:01.149 the reimbursement rate for inpatient 00:25:01.149 --> 00:25:03.210 behavioral health, so you saw some 00:25:03.210 --> 00:25:05.919 readjustment around the community. So now, 00:25:05.919 --> 00:25:08.140 you're watching all of these facilities 00:25:08.140 --> 00:25:10.659 and all these systems grow. I think a lot 00:25:10.659 --> 00:25:11.710 of the growth that's going on in the 00:25:11.710 --> 00:25:13.870 medical district and with the UNLV 00:25:13.870 --> 00:25:16.029 School of Medicine is going to continue 00:25:16.029 --> 00:25:19.720 and we're building out now to embrace 00:25:19.720 --> 00:25:22.330 and be prepared for a major 00:25:22.330 --> 00:25:25.179 transformation into academic medicine. So 00:25:25.179 --> 00:25:27.100 as that happens and more residents are 00:25:27.100 --> 00:25:28.720 coming through, and 70% of those are 00:25:28.720 --> 00:25:29.530 staying here. 00:25:29.530 --> 00:25:31.440 They're going to be opening up practices. 00:25:31.440 --> 00:25:33.670 Then we'll start developing specialty 00:25:33.670 --> 00:25:35.320 and subspecialty programs and fellowship 00:25:35.320 --> 00:25:38.920 programs to bring on the the access to 00:25:38.920 --> 00:25:40.840 care that we desperately need. You're 00:25:40.840 --> 00:25:43.690 seeing other systems such as yesterday, 00:25:43.690 --> 00:25:45.130 there's a great presentation from the 00:25:45.130 --> 00:25:47.500 folks from Union Village in Henderson 00:25:47.500 --> 00:25:48.790 Hospital. That was a hospital that was 00:25:48.790 --> 00:25:50.200 opened up just a year ago, and they're 00:25:50.200 --> 00:25:52.840 already expanding they're already at 00:25:52.840 --> 00:25:55.600 that capacity. Every single Hospital in 00:25:55.600 --> 00:25:57.580 this town is growing at some rate 00:25:57.580 --> 00:25:58.980 whether it's Centennial, Spring Valley, 00:25:58.980 --> 00:26:01.630 Mountain View, Sunrise is building a new 00:26:01.630 --> 00:26:04.270 tower. You're seeing the introduction of 00:26:04.270 --> 00:26:06.430 stand-alone ERs. You're seeing the 00:26:06.430 --> 00:26:09.400 introduction of community hospitals or 00:26:09.400 --> 00:26:11.560 micro hospitals, and this is all 00:26:11.560 --> 00:26:14.440 improving access to care because we all 00:26:14.440 --> 00:26:17.260 want to access care whereas closest to 00:26:17.260 --> 00:26:19.510 where we live. And you're going to see a 00:26:19.510 --> 00:26:21.430 huge transformation that's for years to 00:26:21.430 --> 00:26:22.090 come. 00:26:22.090 --> 00:26:24.130 So I think it's an exciting time for 00:26:24.130 --> 00:26:26.290 medicine in Las Vegas. I think the great 00:26:26.290 --> 00:26:27.730 work that's being done by our governor 00:26:27.730 --> 00:26:28.960 with the expansion of Graduate Medical 00:26:28.960 --> 00:26:31.180 Education, what's happening with you and 00:26:31.180 --> 00:26:32.770 I'll be medicine. What's going on at the 00:26:32.770 --> 00:26:35.770 medical district? Health care is now top 00:26:35.770 --> 00:26:38.740 of mind, and tip of tongue. It's happening. 00:26:38.740 --> 00:26:40.240 It's growing and it's driving this 00:26:40.240 --> 00:26:42.120 community and it's going to require 00:26:42.120 --> 00:26:44.890 strengthening that healthcare pillar for 00:26:44.890 --> 00:26:46.810 true economic diversification to happen 00:26:46.810 --> 00:26:48.970 because, as we're trying to recruit 00:26:48.970 --> 00:26:51.280 attract and expand companies to come 00:26:51.280 --> 00:26:54.840 here. Those executives want to offer 00:26:54.840 --> 00:26:57.640 their family, their executives, families 00:26:57.640 --> 00:26:59.260 and all of their employees, and their 00:26:59.260 --> 00:27:00.880 families good health care, and good 00:27:00.880 --> 00:27:03.220 education. And so I think the healthcare 00:27:03.220 --> 00:27:04.570 community has really come together to 00:27:04.570 --> 00:27:06.990 help provide that part of the equation 00:27:06.990 --> 00:27:09.280 beautiful, beautiful. All right, panel. I'm 00:27:09.280 --> 00:27:10.750 going to open up the next question to 00:27:10.750 --> 00:27:12.580 everybody. This is a little bit of a hot 00:27:12.580 --> 00:27:16.600 button issue: reimbursement rates. Could 00:27:16.600 --> 00:27:18.520 you guys could you tell us about what's 00:27:18.520 --> 00:27:20.230 going on with reimbursement rates? How do 00:27:20.230 --> 00:27:22.990 we stack up to other markets? Why is it 00:27:22.990 --> 00:27:25.380 important? What can we do about it? 00:27:25.380 --> 00:27:28.150 So I'll jump in there. Sorry to hog the 00:27:28.150 --> 00:27:30.790 microphone a little bit, and a little bit 00:27:30.790 --> 00:27:35.320 of a selfish plug. So Las Vegas Heals has 00:27:35.320 --> 00:27:37.180 a reimbursement survey out on the street. 00:27:37.180 --> 00:27:39.010 We partnered up with the LVGEA on this. 00:27:39.010 --> 00:27:40.920 So, 00:27:40.920 --> 00:27:43.470 let me explain why reimbursements is so 00:27:43.470 --> 00:27:46.260 important economic development really is 00:27:46.260 --> 00:27:48.570 job creation, okay, and workforce 00:27:48.570 --> 00:27:49.950 development. It's what it comes down to. 00:27:49.950 --> 00:27:52.740 In workforce development, you've got two 00:27:52.740 --> 00:27:55.050 parts of that equation recruitment of a 00:27:55.050 --> 00:27:57.620 workforce and retention of a workforce. 00:27:57.620 --> 00:28:00.690 We have worked extremely hard over the 00:28:00.690 --> 00:28:02.640 course of the last four years to expand 00:28:02.640 --> 00:28:06.360 our physician pipeline. So, the expansion 00:28:06.360 --> 00:28:07.830 of Graduate Medical Education to put 00:28:07.830 --> 00:28:09.690 some perspective to that we're going 00:28:09.690 --> 00:28:11.760 from programs existing in three 00:28:11.760 --> 00:28:13.260 hospitals by the end of this year. We 00:28:13.260 --> 00:28:14.730 should probably have programs and 12 00:28:14.730 --> 00:28:19.140 hospitals, which is gigantic. And so we've 00:28:19.140 --> 00:28:21.660 spent all this time developing this 00:28:21.660 --> 00:28:23.040 pipeline of physicians with the new 00:28:23.040 --> 00:28:24.600 Medical School with the expansion of 00:28:24.600 --> 00:28:26.970 Toro and everything that's going on we 00:28:26.970 --> 00:28:28.710 now need to focus our attention to the 00:28:28.710 --> 00:28:30.350 retention part of the equation and 00:28:30.350 --> 00:28:33.750 that's keeping them here. And the 00:28:33.750 --> 00:28:36.450 residency programs get them here. What 00:28:36.450 --> 00:28:39.020 keeps doctors here is their pay, and 00:28:39.020 --> 00:28:41.790 their pay is directly tied to 00:28:41.790 --> 00:28:44.520 reimbursement rates? So if we are not 00:28:44.520 --> 00:28:47.490 reimbursing them adequately all of this 00:28:47.490 --> 00:28:49.200 infrastructure that we've been building 00:28:49.200 --> 00:28:51.410 over the last five years is for naught. 00:28:51.410 --> 00:28:54.030 So, we have to get this part of the 00:28:54.030 --> 00:28:57.270 equation right? Nevada, as a whole, is one 00:28:57.270 --> 00:28:59.490 of the worst reimburse markets in the 00:28:59.490 --> 00:29:03.000 entire country, so physicians have the 00:29:03.000 --> 00:29:05.120 choice because they're in demand 00:29:05.120 --> 00:29:08.250 everywhere. The physician shortage is not 00:29:08.250 --> 00:29:10.530 just in Nevada. It is in every single 00:29:10.530 --> 00:29:14.100 state and so doctors have choices where 00:29:14.100 --> 00:29:15.960 they could live and when they could go 00:29:15.960 --> 00:29:18.000 to a neighboring states, and they could 00:29:18.000 --> 00:29:20.820 earn 40 percent more and see less 00:29:20.820 --> 00:29:22.890 patients and do what they truly care 00:29:22.890 --> 00:29:24.060 about. And is delivering exceptional 00:29:24.060 --> 00:29:26.970 patient care spending time with the 00:29:26.970 --> 00:29:28.980 patient's they could choose where 00:29:28.980 --> 00:29:31.020 they're going to go. So in order for 00:29:31.020 --> 00:29:32.520 Nevada to have a competitive advantage, 00:29:32.520 --> 00:29:35.640 we must address reimbursement rates. If 00:29:35.640 --> 00:29:37.890 we don't get that right, we're going to 00:29:37.890 --> 00:29:44.780 have serious serious challenges. Well, 00:29:45.610 --> 00:29:48.910 my husband is a nephrologist. They 00:29:48.910 --> 00:29:50.920 when I first started dating him, I 00:29:50.920 --> 00:29:52.510 thought that was sex with dead people. 00:29:52.510 --> 00:29:59.560 It's not. It's, he's a gay doctor, thank 00:29:59.560 --> 00:30:02.890 God. A kid and Ragnar and my stepdaughter 00:30:02.890 --> 00:30:06.130 is a primary care physician. So we do 00:30:06.130 --> 00:30:08.440 health care in our family. It's a very 00:30:08.440 --> 00:30:10.510 simple thing and just get on it. 00:30:10.510 --> 00:30:12.520 Reimbursement is important because 00:30:12.520 --> 00:30:15.040 doctors like to eat and support their 00:30:15.040 --> 00:30:17.560 families and if the reimbursement rates 00:30:17.560 --> 00:30:19.780 are low they are going to go elsewhere 00:30:19.780 --> 00:30:22.660 but it also has a lot to do with the 00:30:22.660 --> 00:30:25.030 insurance companies who are negotiating 00:30:25.030 --> 00:30:28.840 the rates with the doctors and because 00:30:28.840 --> 00:30:34.300 there is very few choices of private 00:30:34.300 --> 00:30:38.050 health insurers. The insurance companies 00:30:38.050 --> 00:30:40.870 can pretty well determine what they are 00:30:40.870 --> 00:30:43.420 going to pay for the services if the 00:30:43.420 --> 00:30:45.640 doctor wants to be in their network. And 00:30:45.640 --> 00:30:48.820 so, my husband is a managing doctor of 00:30:48.820 --> 00:30:51.790 his group. There's 33 doctors. 700 00:30:51.790 --> 00:30:53.740 employees in his group. It's a big 00:30:53.740 --> 00:30:56.560 practice, but when he is dealing with the 00:30:56.560 --> 00:30:58.990 insurance companies they are offering to 00:30:58.990 --> 00:31:01.480 reimburse them 50 percent of Medicare, 00:31:01.480 --> 00:31:04.540 which is pathetic. Anyway, Medicare is one 00:31:04.540 --> 00:31:07.390 of his high pays, not one of his low pays. 00:31:07.390 --> 00:31:09.310 And you know, they could look, you know, 00:31:09.310 --> 00:31:12.310 we just going to deal with your 00:31:12.310 --> 00:31:16.510 competitor, and we're giving them 50. 50 00:31:16.510 --> 00:31:18.790 percent of Medicare. You want it or you 00:31:18.790 --> 00:31:21.160 don't want it. Now Larry's groups going 00:31:21.160 --> 00:31:22.870 to want to be part of that Network, too. 00:31:22.870 --> 00:31:25.650 So those primary care physicians can 00:31:25.650 --> 00:31:29.380 refer their patient to whoever, 00:31:29.380 --> 00:31:31.810 whatever doctors in that network. So it 00:31:31.810 --> 00:31:35.230 has a lot to do with lack of competition 00:31:35.230 --> 00:31:38.170 with insurance companies offering this 00:31:38.170 --> 00:31:41.980 type of insurance medical insurance to 00:31:41.980 --> 00:31:45.580 our so, I guess, our fellow citizens. 00:31:45.580 --> 00:31:47.110 That's huge. 00:31:47.110 --> 00:31:49.470 Another thing that is going to be 00:31:49.470 --> 00:31:53.560 devastating for this state if President 00:31:53.560 --> 00:31:56.800 Trump's proposal to cut eight hundred 00:31:56.800 --> 00:31:58.600 billion dollars out of men, 00:31:58.600 --> 00:32:01.120 the cave goes through. I sincerely doubt 00:32:01.120 --> 00:32:04.270 it will. It is going to be devastating 00:32:04.270 --> 00:32:06.610 for the state of Nevada because that's 00:32:06.610 --> 00:32:09.730 how poor people get their services and 00:32:09.730 --> 00:32:11.380 it's important to know this. In 00:32:11.380 --> 00:32:14.440 conclusion, just because you don't have 00:32:14.440 --> 00:32:16.870 health insurance doesn't mean you don't 00:32:16.870 --> 00:32:20.049 get sick. You wait until you get really 00:32:20.049 --> 00:32:21.910 sick and you end up in the emergency 00:32:21.910 --> 00:32:24.910 rooms of the hospital. What is the most 00:32:24.910 --> 00:32:28.660 expensive type of treatment? Emergency 00:32:28.660 --> 00:32:30.789 room treatment and there is a reason 00:32:30.789 --> 00:32:34.390 that UMC is no longer having 70 million 00:32:34.390 --> 00:32:36.880 dollar yearly deficits. They're not in 00:32:36.880 --> 00:32:39.690 the red anymore, and that's because 00:32:39.690 --> 00:32:43.539 Obamacare expanded Medicaid. Governor 00:32:43.539 --> 00:32:46.960 Sandoval agreed that they should that 00:32:46.960 --> 00:32:49.030 the state of Nevada should expand its 00:32:49.030 --> 00:32:51.280 Medicaid program and as the 00:32:51.280 --> 00:32:54.159 reimbursement from the feds gets lower 00:32:54.159 --> 00:32:57.130 and lower the cost to the taxpayers of 00:32:57.130 --> 00:32:59.620 the state of Nevada is going to rise and 00:32:59.620 --> 00:33:03.070 rise and rise. It could be a big budget 00:33:03.070 --> 00:33:07.059 buster, and for somebody like Barbara, who 00:33:07.059 --> 00:33:09.820 needs those state dollar, of course. Itoro 00:33:09.820 --> 00:33:12.210 doesn't take any state or federal money. 00:33:12.210 --> 00:33:18.880 However, for yes for a medical school 00:33:18.880 --> 00:33:22.330 that's dependent on state funding, the 00:33:22.330 --> 00:33:24.640 fact that Medicaid is going to be cut is 00:33:24.640 --> 00:33:27.039 really going to hurt, that they're going 00:33:27.039 --> 00:33:29.110 to have to make up the shortfall and 00:33:29.110 --> 00:33:32.169 things like UNLV Medical School. And so 00:33:32.169 --> 00:33:34.419 many other programs that we as citizens 00:33:34.419 --> 00:33:37.210 expect from our government aren't going 00:33:37.210 --> 00:33:39.039 to are going to be cut because this is a 00:33:39.039 --> 00:33:41.679 low tax state and our fellow citizens 00:33:41.679 --> 00:33:45.549 don't want their taxes increased, alright. 00:33:45.549 --> 00:33:48.610 Thank you, thank you. We've got so many 00:33:48.610 --> 00:33:50.350 more questions that I want to ask, but 00:33:50.350 --> 00:33:52.090 it's important that we open it up to you 00:33:52.090 --> 00:33:55.059 guys. So this is a segment where, let's 00:33:55.059 --> 00:33:56.470 see if we can't fit in some questions 00:33:56.470 --> 00:33:58.780 from Twitter. And then we're going to 00:33:58.780 --> 00:34:02.520 have a roving microphone as well 00:34:02.640 --> 00:34:06.809 Twitter's not working okay. 00:34:06.900 --> 00:34:09.340 Our feed is not working, all right. What's 00:34:09.340 --> 00:34:13.929 the visit? This is good to know. So from 00:34:13.929 --> 00:34:16.418 the audience, do we have a question for 00:34:16.418 --> 00:34:21.010 this panel? Anybody will come get you 00:34:21.010 --> 00:34:23.739 with a microphone while you're waiting. Can 00:34:23.739 --> 00:34:26.649 I make it? Yeah, all right. Rebuttal. A 00:34:26.649 --> 00:34:31.179 little carrot. I just don't want to 00:34:31.179 --> 00:34:33.159 leave the audience with something that I 00:34:33.159 --> 00:34:35.020 think is a misconception. I agree with 00:34:35.020 --> 00:34:37.360 Shelley on almost everything and for 00:34:37.360 --> 00:34:40.119 sure on the GME, we absolutely need it 00:34:40.119 --> 00:34:42.310 and it is in the governor's budget. So 00:34:42.310 --> 00:34:44.290 and it does look like it's going through. 00:34:44.290 --> 00:34:46.989 What I disagree with is that primary 00:34:46.989 --> 00:34:49.480 care is all we need. We need specialty 00:34:49.480 --> 00:34:52.000 care in this city as well. You do one 00:34:52.000 --> 00:34:53.739 first, and then the other, and you're 00:34:53.739 --> 00:34:56.020 right. We need to both make money from 00:34:56.020 --> 00:34:58.210 primary care. And you don't get the 00:34:58.210 --> 00:35:00.610 pipeline that refers, Let me just tell 00:35:00.610 --> 00:35:02.730 you why we need specialties now too, 00:35:02.730 --> 00:35:05.740 because almost half of the students that 00:35:05.740 --> 00:35:09.150 that went to Reno University of 00:35:09.150 --> 00:35:12.460 Nevada-reno School of Medicine left the 00:35:12.460 --> 00:35:14.320 state because the specialty training 00:35:14.320 --> 00:35:16.869 they wanted isn't given in the state so 00:35:16.869 --> 00:35:19.540 to actually fix the students leaving the 00:35:19.540 --> 00:35:21.190 state. They have to have specialty 00:35:21.190 --> 00:35:23.500 residents, and if you look at the medical 00:35:23.500 --> 00:35:25.119 care that's missing. It's the highest 00:35:25.119 --> 00:35:27.340 level of medical care that doesn't exist 00:35:27.340 --> 00:35:30.010 at all things like liver transplants, 00:35:30.010 --> 00:35:32.260 bone marrow transplants, pancreas 00:35:32.260 --> 00:35:34.990 transplants, a heart failure program was 00:35:34.990 --> 00:35:37.510 an external pump. Those are all programs 00:35:37.510 --> 00:35:39.880 that need to be here in Las Vegas, and 00:35:39.880 --> 00:35:41.140 you shouldn't have to leave even 00:35:41.140 --> 00:35:43.450 insurance companies have to pay to send 00:35:43.450 --> 00:35:45.280 people out of state for those kinds of 00:35:45.280 --> 00:35:48.070 things. So we really need the other 00:35:48.070 --> 00:35:49.930 residences, and just to tell you what 00:35:49.930 --> 00:35:51.760 residences are missing in this state. 00:35:51.760 --> 00:35:54.010 Some very basic things like in 00:35:54.010 --> 00:35:56.500 nephrology fellowship, for one, is missing. 00:35:56.500 --> 00:35:58.869 But things like dermatology, 00:35:58.869 --> 00:36:01.750 ophthalmology, neurosurgery, cardiac 00:36:01.750 --> 00:36:05.830 surgery, orthopedics just started. So we 00:36:05.830 --> 00:36:09.540 now have that all of the radiology, 00:36:09.540 --> 00:36:12.760 anesthesia, pathology, radiation, oncology, 00:36:12.760 --> 00:36:15.130 I could probably name a lot more and 00:36:15.130 --> 00:36:16.810 there's not a single pediatric 00:36:16.810 --> 00:36:17.960 fellowship. 00:36:17.960 --> 00:36:20.599 Only three medicine fellowship. So if you 00:36:20.599 --> 00:36:23.450 want to, there's no oncology cancer 00:36:23.450 --> 00:36:25.730 fellowships. So all of those need to be 00:36:25.730 --> 00:36:28.700 built in this city and as fast as they 00:36:28.700 --> 00:36:30.710 can be built and I will say that 00:36:30.710 --> 00:36:32.540 depending on what charts you look at if 00:36:32.540 --> 00:36:34.580 you look at a national average of 00:36:34.580 --> 00:36:38.240 specialty versus primary care were more 00:36:38.240 --> 00:36:41.180 scarce in specialties. If you look at 00:36:41.180 --> 00:36:43.070 the Mountain West which includes things 00:36:43.070 --> 00:36:45.859 like Idaho, Wyoming, in Montana 00:36:45.859 --> 00:36:48.890 primary care is more comparing us to 00:36:48.890 --> 00:36:51.560 them is really more in demand. But it 00:36:51.560 --> 00:36:53.450 just goes to show that their region as a 00:36:53.450 --> 00:36:55.369 whole needs more specialty care. So 00:36:55.369 --> 00:36:57.109 couldn't leave it without that super 00:36:57.109 --> 00:36:59.089 important. And in four years, when you 00:36:59.089 --> 00:37:01.640 graduate your first class. Barbara, I 00:37:01.640 --> 00:37:03.800 think, we should start those specialties 00:37:03.800 --> 00:37:05.930 right. Now, let's get the primary care 00:37:05.930 --> 00:37:08.540 physicians, what? Let's be real. We need 00:37:08.540 --> 00:37:11.030 all of them, and we need them all now. So 00:37:11.030 --> 00:37:12.950 please, talk to the governor. Talk to your 00:37:12.950 --> 00:37:15.109 legislators. Let's get the GME funded, 00:37:15.109 --> 00:37:16.880 Let's get the Medical School funded, and 00:37:16.880 --> 00:37:19.040 let's just get this done. So people quit 00:37:19.040 --> 00:37:20.869 getting on the airplane to go get their 00:37:20.869 --> 00:37:23.750 care, that should not be OK for us in 00:37:23.750 --> 00:37:26.420 this city anymore. And all of these 00:37:26.420 --> 00:37:28.040 people are completely dedicated to 00:37:28.040 --> 00:37:30.920 turning that ship around, but it takes 00:37:30.920 --> 00:37:36.050 every citizen to care and act that is 00:37:36.050 --> 00:37:38.570 the perfect summary. A transition to you. 00:37:38.570 --> 00:37:41.119 Guys, we do have a question from the 00:37:41.119 --> 00:37:42.070 audience. 00:37:42.070 --> 00:37:44.930 Team. Yup. There we go all right. Fire away. 00:37:44.930 --> 00:37:47.000 Rachel's all Mesquite Regional Business. 00:37:47.000 --> 00:37:49.880 We're about an hour east of here, and we 00:37:49.880 --> 00:37:51.830 feel the same way except people get in 00:37:51.830 --> 00:37:53.780 their car and come here for medical care. 00:37:53.780 --> 00:37:56.480 So is there going to be an effort to 00:37:56.480 --> 00:37:58.220 reach out to rural Clark County 00:37:58.220 --> 00:38:00.680 communities? Can we have some residences 00:38:00.680 --> 00:38:03.650 in Mesquite, in Boulder City, and Laughlin, 00:38:03.650 --> 00:38:08.089 and some of our other partners? I can 00:38:08.089 --> 00:38:09.920 start out saying that I think the big 00:38:09.920 --> 00:38:11.990 the biggest thing that could help rural 00:38:11.990 --> 00:38:14.270 Clark County, and rural Nevada is 00:38:14.270 --> 00:38:16.190 telemedicine, and I think that's really 00:38:16.190 --> 00:38:17.990 the thing of the future, and that's 00:38:17.990 --> 00:38:20.990 something that's really good for urban 00:38:20.990 --> 00:38:24.020 areas too. For follow-up, you need to be 00:38:24.020 --> 00:38:26.690 see a doctor in person the first time, 00:38:26.690 --> 00:38:29.000 but often for follow-up especially with 00:38:29.000 --> 00:38:31.190 chronic diseases, it could happen in your 00:38:31.190 --> 00:38:31.430 home, 00:38:31.430 --> 00:38:34.579 and save you the drive and save you, save 00:38:34.579 --> 00:38:36.740 you, the parking and so on. 00:38:36.740 --> 00:38:39.800 Let the echo what Barbara is saying, Kuro 00:38:39.800 --> 00:38:42.500 is very aggressively moving into 00:38:42.500 --> 00:38:44.960 telemedicine. I think it is very 00:38:44.960 --> 00:38:47.990 important if there are not enough health 00:38:47.990 --> 00:38:50.359 care providers, and there are not in the 00:38:50.359 --> 00:38:54.500 state of Nevada. See a very good way. It's 00:38:54.500 --> 00:38:57.530 not the ideal perfect way, but a very 00:38:57.530 --> 00:39:00.290 good way to access healthcare and to 00:39:00.290 --> 00:39:02.540 speak to a health care provider is 00:39:02.540 --> 00:39:05.059 through telemedicine. So, we are also 00:39:05.059 --> 00:39:07.220 moving in that direction very very 00:39:07.220 --> 00:39:11.960 rapidly and very aggressively. Excellent. 00:39:11.960 --> 00:39:14.839 I know we're running short on time so 00:39:14.839 --> 00:39:16.670 we're going to cut cut this segment 00:39:16.670 --> 00:39:18.829 short. And give this group a huge round 00:39:18.829 --> 00:39:25.220 of applause? Can you join me? Thank you so 00:39:25.220 --> 00:39:36.619 much, all right. I hope you can see how 00:39:36.619 --> 00:39:38.930 critical healthcare is to our economy, 00:39:38.930 --> 00:39:41.420 and to really to our community and 00:39:41.420 --> 00:39:43.490 getting to that next level. I hope you 00:39:43.490 --> 00:39:45.799 learn something there. We're going to 00:39:45.799 --> 00:39:49.849 move on to our first keynote, and I want 00:39:49.849 --> 00:39:52.700 to introduce this by saying a friend 00:39:52.700 --> 00:39:54.650 once told me, "You'll know when you 00:39:54.650 --> 00:39:58.809 arrived in Las Vegas when Jeremy agüero 00:39:58.809 --> 00:40:03.470 considers you a friend," right? I believe 00:40:03.470 --> 00:40:06.170 that that's kind of true and I'm proud 00:40:06.170 --> 00:40:08.960 to say Jeremy, I consider you a friend. 00:40:08.960 --> 00:40:11.650 You're one of the smartest people I know. 00:40:11.650 --> 00:40:14.240 This is the presentation that I know you 00:40:14.240 --> 00:40:16.579 guys really keep coming back for year 00:40:16.579 --> 00:40:18.890 after year. That makes perspective. Great, 00:40:18.890 --> 00:40:21.380 let's give a warm welcome to Jeremy 00:40:21.380 --> 00:40:24.609 Agüero with a plot analysis. 00:40:27.380 --> 00:40:30.510 [Music] 00:40:31.180 --> 00:40:33.770 Good morning. I appreciate everybody 00:40:33.770 --> 00:40:37.370 being here today as Jonas, my very good 00:40:37.370 --> 00:40:41.630 friend, indicated my job is to come up 00:40:41.630 --> 00:40:43.250 here and provide you somewhat of an 00:40:43.250 --> 00:40:44.570 overview in terms of where we are as an 00:40:44.570 --> 00:40:46.010 economy. And where we think that were 00:40:46.010 --> 00:40:47.240 ultimately heading. Before I do that, 00:40:47.240 --> 00:40:49.310 Jonas was so nice to say thank you to 00:40:49.310 --> 00:40:50.870 our firm and the other sponsors that we 00:40:50.870 --> 00:40:52.790 have and everyone being here. But he 00:40:52.790 --> 00:40:55.610 would never be so presumptive is to say 00:40:55.610 --> 00:40:58.010 to mention the LVGEA and all the 00:40:58.010 --> 00:40:59.570 wonderful things that they do and their 00:40:59.570 --> 00:41:01.490 entire staff does to put on this event. 00:41:01.490 --> 00:41:09.260 Please give them a round in developing 00:41:09.260 --> 00:41:11.120 my presentation today. The title of my 00:41:11.120 --> 00:41:13.280 presentation is Coming Full Circle. It 00:41:13.280 --> 00:41:15.080 occurs to me that our community is going 00:41:15.080 --> 00:41:17.000 through some unique brand approach 00:41:17.000 --> 00:41:20.890 traumatic stress. Excuse me, yeah. Me too. 00:41:20.890 --> 00:41:23.840 Post-traumatic stress disorder in terms 00:41:23.840 --> 00:41:25.520 of this ability to start to 00:41:25.520 --> 00:41:27.170 conceptualize the fact that our economy 00:41:27.170 --> 00:41:28.760 is no longer in recession that we're 00:41:28.760 --> 00:41:30.200 starting to move forward, and the 00:41:30.200 --> 00:41:31.400 questions that I get are relatively 00:41:31.400 --> 00:41:33.950 similar. Hey look. What's going to happen 00:41:33.950 --> 00:41:35.450 next? When are we going to fall off this 00:41:35.450 --> 00:41:37.760 cliff? Are we growing too fast? This means 00:41:37.760 --> 00:41:39.350 we're getting out over our skis. Are we 00:41:39.350 --> 00:41:40.790 just setting ourselves up to happen 00:41:40.790 --> 00:41:42.620 again? Should I invest? All of those type 00:41:42.620 --> 00:41:45.020 of things seem to be this recurring set 00:41:45.020 --> 00:41:46.520 of questions. And so, I'd like to take 00:41:46.520 --> 00:41:48.260 some time to put some of those arrests. 00:41:48.260 --> 00:41:50.390 And I understand why we got to this 00:41:50.390 --> 00:41:52.940 point. Let's not forget about all of the 00:41:52.940 --> 00:41:54.740 articles that came out for the better, 00:41:54.740 --> 00:41:57.290 part of a five-year period right? 00:41:57.290 --> 00:41:59.390 Crowds returned but we're no one's going 00:41:59.390 --> 00:42:01.640 to gamble the housing market continues 00:42:01.640 --> 00:42:04.640 to slide Las Vegas economy, absolutely in 00:42:04.640 --> 00:42:07.340 freefall. My personal favorite, Las Vegas 00:42:07.340 --> 00:42:10.300 economy, among the worst in the world 00:42:10.300 --> 00:42:14.030 report, says now I can think of lots of 00:42:14.030 --> 00:42:17.330 places on planet Earth many of them end. 00:42:17.330 --> 00:42:20.510 With something like Tajikistan, you 00:42:20.510 --> 00:42:22.910 know, whatever that I don't even ever 00:42:22.910 --> 00:42:25.370 believe that we are the worst on planet 00:42:25.370 --> 00:42:27.590 earth. And then the other one that was 00:42:27.590 --> 00:42:29.900 out there was, of course, Las Vegas from 00:42:29.900 --> 00:42:32.000 Time magazine, where Joel Stein called 00:42:32.000 --> 00:42:35.630 Las Vegas the world's greatest ghost 00:42:35.630 --> 00:42:36.360 town 00:42:36.360 --> 00:42:39.180 in waiting. Right? This is why we continue 00:42:39.180 --> 00:42:42.300 to have this type of concern, and I get 00:42:42.300 --> 00:42:44.700 it I get that the economic downturn was 00:42:44.700 --> 00:42:47.130 significant. I get that it created a lot 00:42:47.130 --> 00:42:49.410 of stress for us in here. But the fact 00:42:49.410 --> 00:42:51.540 that this room is filled with so many 00:42:51.540 --> 00:42:54.390 familiar faces among people who found a 00:42:54.390 --> 00:42:56.100 way to make it work. I think is something 00:42:56.100 --> 00:42:58.020 we should be very proud of. And I think 00:42:58.020 --> 00:43:00.270 being realistic about where we are is 00:43:00.270 --> 00:43:02.790 important because this community will 00:43:02.790 --> 00:43:05.910 not be judged, based on our ability to 00:43:05.910 --> 00:43:09.150 survive a recession our community will 00:43:09.150 --> 00:43:12.150 be judged on the ability to sustain our 00:43:12.150 --> 00:43:14.400 prosperity. That is what you heard today, 00:43:14.400 --> 00:43:16.860 and that is what we need to do as a 00:43:16.860 --> 00:43:18.840 community. I'm going to start with 00:43:18.840 --> 00:43:20.880 population growth because our community 00:43:20.880 --> 00:43:23.610 is geared for exactly that we are 00:43:23.610 --> 00:43:26.160 designed to grow. We have been among the 00:43:26.160 --> 00:43:28.620 nation's fastest growing for decades and 00:43:28.620 --> 00:43:30.150 decades and decades. And here we are 00:43:30.150 --> 00:43:32.640 still again. what I'd like to do is just 00:43:32.640 --> 00:43:34.590 show you the population growth during 00:43:34.590 --> 00:43:36.930 sort of a boom period. And then you see 00:43:36.930 --> 00:43:38.250 that it sort of flattens out a little 00:43:38.250 --> 00:43:40.830 bit, and here we are again. And today, we 00:43:40.830 --> 00:43:44.910 are a community of 2.2 million people 00:43:44.910 --> 00:43:47.760 overall. 2.2 million people call this 00:43:47.760 --> 00:43:48.510 place home. 00:43:48.510 --> 00:43:50.130 Now it's the same 500 people that you 00:43:50.130 --> 00:43:52.530 see everywhere you go. I get that, okay. 00:43:52.530 --> 00:43:55.710 But there really are 2.2 million people 00:43:55.710 --> 00:43:57.870 have physically live in this community. 00:43:57.870 --> 00:44:00.300 Now, I went relatively fast to this and 00:44:00.300 --> 00:44:02.070 if I was to go back through it. You'd see 00:44:02.070 --> 00:44:03.420 that the demographics, and I'll go 00:44:03.420 --> 00:44:05.190 backward because my guys were so nice to 00:44:05.190 --> 00:44:07.170 create this. If you look on the right 00:44:07.170 --> 00:44:09.060 side of my chart, that's the shares in 00:44:09.060 --> 00:44:10.760 terms of races in terms of our 00:44:10.760 --> 00:44:13.140 demographics if you will. And we look at 00:44:13.140 --> 00:44:15.480 2000, and then we look at 2006. And then 00:44:15.480 --> 00:44:17.370 we look at 2012, and then where we are 00:44:17.370 --> 00:44:19.380 today, we are becoming increasingly 00:44:19.380 --> 00:44:22.050 diverse. We are minority-majority. All of 00:44:22.050 --> 00:44:24.270 those type of things this diversity is 00:44:24.270 --> 00:44:27.060 what makes our community great. It is 00:44:27.060 --> 00:44:29.220 part of who we are. It is the fabric of 00:44:29.220 --> 00:44:31.200 our society, and there is nothing wrong 00:44:31.200 --> 00:44:32.670 with it. As a matter of fact, we only 00:44:32.670 --> 00:44:34.740 today are starting to embrace that and 00:44:34.740 --> 00:44:37.290 carry it forward. These are the 35 00:44:37.290 --> 00:44:39.720 largest metropolitan areas in the United 00:44:39.720 --> 00:44:41.760 States. We are the third fastest growing 00:44:41.760 --> 00:44:44.310 of all of them, not a bad place to be. 00:44:44.310 --> 00:44:46.590 Where are newcomers coming from? There's 00:44:46.590 --> 00:44:48.570 no surprise here. Who want to think about 00:44:48.570 --> 00:44:49.480 it in terms of full 00:44:49.480 --> 00:44:51.640 circle. Yes, people did not move to 00:44:51.640 --> 00:44:53.530 Southern Nevada when the economy was 00:44:53.530 --> 00:44:55.180 going down? Why did they not move because 00:44:55.180 --> 00:44:57.130 they weren't moving anywhere because 00:44:57.130 --> 00:44:59.140 their house was underwater. That's why 00:44:59.140 --> 00:45:01.240 people weren't moving. And now they're 00:45:01.240 --> 00:45:02.560 moving again, and guess where they're 00:45:02.560 --> 00:45:05.080 coming from, excuse me, California. 00:45:05.080 --> 00:45:07.150 Because it's the seventh largest economy 00:45:07.150 --> 00:45:09.310 on planet Earth and people can't get out 00:45:09.310 --> 00:45:10.930 of there fast enough. All of which is 00:45:10.930 --> 00:45:13.420 fine right? But it's benefiting us but 00:45:13.420 --> 00:45:15.340 more important than this idea of full 00:45:15.340 --> 00:45:17.500 circle is how we've changed in that. 00:45:17.500 --> 00:45:19.210 Let's just take a look at what those 00:45:19.210 --> 00:45:21.460 newcomer trends look like throughout the 00:45:21.460 --> 00:45:24.100 years in 2000. Look at what the income 00:45:24.100 --> 00:45:26.050 level was. Look at the age of people 00:45:26.050 --> 00:45:28.060 moving in. What we know is that today 00:45:28.060 --> 00:45:30.940 people are moving into our community to 00:45:30.940 --> 00:45:33.250 find jobs that are at a higher level and 00:45:33.250 --> 00:45:35.170 they're bringing more income with them. 00:45:35.170 --> 00:45:37.060 They're also bringing more home equity 00:45:37.060 --> 00:45:39.160 with them, and surprisingly enough, there 00:45:39.160 --> 00:45:40.810 actually appears to be some 00:45:40.810 --> 00:45:42.850 Millennials that are moving out of their 00:45:42.850 --> 00:45:44.859 parents house because they appear to be 00:45:44.859 --> 00:45:47.680 moving here right? If you look at the far 00:45:47.680 --> 00:45:50.440 right at 2016, the age at which people 00:45:50.440 --> 00:45:52.630 are moving in is dropping for every 00:45:52.630 --> 00:45:54.670 reason and the LVGEA has been absolutely 00:45:54.670 --> 00:45:57.220 a leader on. This is the reality that we 00:45:57.220 --> 00:45:59.920 cannot create as many professionals as 00:45:59.920 --> 00:46:01.630 we need in this community. 00:46:01.630 --> 00:46:03.490 Things like GME and others are 00:46:03.490 --> 00:46:05.380 essentially a roadblock until we are 00:46:05.380 --> 00:46:07.030 going to have to attract talent 00:46:07.030 --> 00:46:08.800 particularly from around the western 00:46:08.800 --> 00:46:10.600 United States. And they're coming here, 00:46:10.600 --> 00:46:13.000 and they're coming here because we offer 00:46:13.000 --> 00:46:16.660 a better way of life overall. If we 00:46:16.660 --> 00:46:19.150 transition from this idea of population 00:46:19.150 --> 00:46:21.640 to this concept of employment, right. The 00:46:21.640 --> 00:46:23.500 number one motivation for people moving 00:46:23.500 --> 00:46:25.510 into our community as it has been for 00:46:25.510 --> 00:46:28.390 most of the past 37 years has been this 00:46:28.390 --> 00:46:31.390 idea of finding a job, probably much 00:46:31.390 --> 00:46:33.609 longer than that. But it is this idea of 00:46:33.609 --> 00:46:36.640 finding a job and if we look at how we 00:46:36.640 --> 00:46:38.470 are creating jobs, and where we've been 00:46:38.470 --> 00:46:40.840 this idea of sort of coming all the way 00:46:40.840 --> 00:46:42.940 back around. This is what job growth 00:46:42.940 --> 00:46:45.340 looked in 2007. Most of the folks here 00:46:45.340 --> 00:46:47.980 remember what 2007 was like. Jobs were 00:46:47.980 --> 00:46:49.869 plentiful, the unemployment rate was 00:46:49.869 --> 00:46:52.720 approaching 4%. Everybody that wanted a 00:46:52.720 --> 00:46:55.330 job could find a job except perhaps for 00:46:55.330 --> 00:46:57.670 my brother-in-law. And it was 00:46:57.670 --> 00:47:00.070 fine, right. It was good right. We were 00:47:00.070 --> 00:47:01.780 growing at 4.3%, we 00:47:01.780 --> 00:47:02.329 were the 00:47:02.329 --> 00:47:03.589 we were the fifth fastest growing 00:47:03.589 --> 00:47:05.539 metropolitan area, excuse me, states in 00:47:05.539 --> 00:47:08.089 the nation. And here we look at a 2011, 00:47:08.089 --> 00:47:10.339 when the world is kind of coming apart, 00:47:10.339 --> 00:47:13.670 and only North Dakota has positive 00:47:13.670 --> 00:47:15.920 growth right. You know, yeah. There's a lot 00:47:15.920 --> 00:47:17.420 of jokes there. We'll just leave it, leave 00:47:17.420 --> 00:47:19.869 it there. And then you look at 2017, and 00:47:19.869 --> 00:47:23.209 here we are again here we are again at 00:47:23.209 --> 00:47:25.939 the now the third fastest growing state 00:47:25.939 --> 00:47:28.309 in the entire United States. And that's 00:47:28.309 --> 00:47:30.799 great, and that full circle is what is 00:47:30.799 --> 00:47:33.109 important to us. But the nature of it, 00:47:33.109 --> 00:47:35.299 what is underlying, it is the reason that 00:47:35.299 --> 00:47:37.579 we can at least exhale a little bit, and 00:47:37.579 --> 00:47:39.890 say we are learning to do it better as 00:47:39.890 --> 00:47:41.959 we go forward. Let's just talk about that 00:47:41.959 --> 00:47:44.059 for a moment. Now, here's the 00:47:44.059 --> 00:47:46.699 pre-recession growth in employment for 00:47:46.699 --> 00:47:48.439 the top 35 MSA. 00:47:48.439 --> 00:47:50.719 I guess I should show this in advance of 00:47:50.719 --> 00:47:52.849 showing how we're changing to make sure 00:47:52.849 --> 00:47:54.140 that I'm showing sort of an apples to 00:47:54.140 --> 00:47:56.209 apples comparison. So we were just 00:47:56.209 --> 00:47:57.679 looking at states we're now looking at 00:47:57.679 --> 00:47:59.779 MSA, is you can see there's only one 00:47:59.779 --> 00:48:02.900 large MSA now to the right of us. In 2007 00:48:02.900 --> 00:48:06.229 we're dead last in the among large MSA. 00:48:06.229 --> 00:48:09.199 And in 2011, and here we are today at 00:48:09.199 --> 00:48:12.529 about three a little over 3% employment 00:48:12.529 --> 00:48:14.269 growth, which I'm sure my good friends at 00:48:14.269 --> 00:48:15.559 the Nevada Department of Employment 00:48:15.559 --> 00:48:17.059 training and rehabilitation, that are 00:48:17.059 --> 00:48:19.219 here today will tell you that is pretty 00:48:19.219 --> 00:48:22.130 darn good growth overall. And we like it 00:48:22.130 --> 00:48:24.650 so we look at where we are in terms of 00:48:24.650 --> 00:48:27.650 having created all of those jobs, right. 00:48:27.650 --> 00:48:29.989 Here's our last peak. There it is, in May 00:48:29.989 --> 00:48:32.929 of 2007 when we had about let's call it 00:48:32.929 --> 00:48:34.489 nine hundred and forty thousand today 00:48:34.489 --> 00:48:36.229 where, let's call it nine hundred and 00:48:36.229 --> 00:48:38.809 eighty thousand. We have forty thousand 00:48:38.809 --> 00:48:41.779 more jobs today in our community than we 00:48:41.779 --> 00:48:44.239 did then on the far right hand side of 00:48:44.239 --> 00:48:46.549 my chart, of course, is what sectors are 00:48:46.549 --> 00:48:48.259 showing the greatest growth. And I think 00:48:48.259 --> 00:48:50.299 this is part of the angst that we have. 00:48:50.299 --> 00:48:52.759 The number one growth sector we had over 00:48:52.759 --> 00:48:54.589 the past 12 months has been construction. 00:48:54.589 --> 00:48:56.929 We added 8,500 jobs, and I am here to 00:48:56.929 --> 00:48:58.640 tell you that as we're going through 00:48:58.640 --> 00:49:01.069 this exercise. By the time we get to the 00:49:01.069 --> 00:49:03.349 end of this year, our community is going 00:49:03.349 --> 00:49:05.779 to be 10,000 construction workers short 00:49:05.779 --> 00:49:07.819 of the number. We're going to need to 00:49:07.819 --> 00:49:09.769 keep pace with all the projects we have. 00:49:09.769 --> 00:49:11.089 And if there's some construction folks 00:49:11.089 --> 00:49:12.799 in the room, they're probably going to 00:49:12.799 --> 00:49:14.749 tell you that I'm light on that number, 00:49:14.749 --> 00:49:15.550 and we're all 00:49:15.550 --> 00:49:18.070 10,000 construction workers short of 00:49:18.070 --> 00:49:19.750 hitting that number. Look at the other 00:49:19.750 --> 00:49:21.400 areas that we're growing professional 00:49:21.400 --> 00:49:23.020 and business services, leisure and 00:49:23.020 --> 00:49:25.590 hospitality, education, in health care, all 00:49:25.590 --> 00:49:27.820 expanding. Let's take a look at the 00:49:27.820 --> 00:49:30.100 unemployment rate, right? Our unemployment 00:49:30.100 --> 00:49:32.340 rate, of course, was always approaching 00:49:32.340 --> 00:49:35.740 15% at the peak of the market. The green 00:49:35.740 --> 00:49:37.300 area at the bottom shows the 00:49:37.300 --> 00:49:39.160 differential between our unemployment 00:49:39.160 --> 00:49:41.320 rate and the United States unemployment 00:49:41.320 --> 00:49:43.420 rate, which I will argue would be almost 00:49:43.420 --> 00:49:45.340 more important than anything else that's 00:49:45.340 --> 00:49:47.620 on this chart. Why? Because that led to an 00:49:47.620 --> 00:49:49.690 out migration of folks, and was part of 00:49:49.690 --> 00:49:52.210 the reason that we lost 1 out of every 8 00:49:52.210 --> 00:49:54.880 private sector jobs in its southern 00:49:54.880 --> 00:49:57.190 nevada during the peak of the recession. 00:49:57.190 --> 00:50:00.490 Today, we've gotten almost all of it back 00:50:00.490 --> 00:50:03.670 we are doing well we are at near full 00:50:03.670 --> 00:50:05.860 employment, if not at full employment and 00:50:05.860 --> 00:50:09.100 that is extremely positive overall under 00:50:09.100 --> 00:50:10.660 where we were where we're headed. 00:50:10.660 --> 00:50:11.740 all those types of things now I 00:50:11.740 --> 00:50:15.010 understand that this chart is is there's 00:50:15.010 --> 00:50:17.170 a lot of colors and a lot of numbers all 00:50:17.170 --> 00:50:18.970 type of things I'd like to talk about it 00:50:18.970 --> 00:50:21.580 just for a moment that those sort of big 00:50:21.580 --> 00:50:23.080 green blocks that's leisure and 00:50:23.080 --> 00:50:25.420 hospitality right this shows us how many 00:50:25.420 --> 00:50:27.640 employees we have and every sector of 00:50:27.640 --> 00:50:29.650 the economy you can see the big green 00:50:29.650 --> 00:50:33.550 block is still the big green block you 00:50:33.550 --> 00:50:36.010 will also see that if we look at 2007 00:50:36.010 --> 00:50:38.860 versus 2017 that the yellow area which 00:50:38.860 --> 00:50:41.380 is education and health services which 00:50:41.380 --> 00:50:43.120 of course you just heard a great deal 00:50:43.120 --> 00:50:45.940 about is getting larger we still have 00:50:45.940 --> 00:50:47.830 only 70 percent of the healthcare 00:50:47.830 --> 00:50:50.380 economy we should for an area of our 00:50:50.380 --> 00:50:51.970 size and that is hugely problematic 00:50:51.970 --> 00:50:54.310 although you will notice that the yellow 00:50:54.310 --> 00:50:57.700 area has gotten increasingly bigger I'm 00:50:57.700 --> 00:51:00.520 really glad that Shelley clarified in 00:51:00.520 --> 00:51:02.110 terms of what nephrology is because 00:51:02.110 --> 00:51:03.340 there's been growth there and I was 00:51:03.340 --> 00:51:04.510 really wondering what the hell was going 00:51:04.510 --> 00:51:09.730 on right so I'm glad I now have all of 00:51:09.730 --> 00:51:12.280 that straight but at the end of the day 00:51:12.280 --> 00:51:13.690 is the one that we probably care about 00:51:13.690 --> 00:51:15.460 the most is this one which is why we 00:51:15.460 --> 00:51:16.960 created the chart in the first place and 00:51:16.960 --> 00:51:19.180 that's the idea of construction so if 00:51:19.180 --> 00:51:21.130 construction is now at the top of our 00:51:21.130 --> 00:51:23.830 list are we getting out over our skis do 00:51:23.830 --> 00:51:27.700 we have this huge problem in 2007 you 00:51:27.700 --> 00:51:29.260 can see that 11.2% 00:51:29.260 --> 00:51:31.330 of our employment was in construction at 00:51:31.330 --> 00:51:33.610 the bottom of the market it was 4.8% 00:51:33.610 --> 00:51:36.010 today we're 6.3 and on the right-hand 00:51:36.010 --> 00:51:38.260 side of my chart I think is what is 00:51:38.260 --> 00:51:40.420 critically important I just told you we 00:51:40.420 --> 00:51:44.350 have 40,000 more employees than we did 00:51:44.350 --> 00:51:48.370 at the prior peak of our economy we did 00:51:48.370 --> 00:51:51.280 that with 40 thousand fewer construction 00:51:51.280 --> 00:51:53.650 workers in our economy at its peak that 00:51:53.650 --> 00:51:55.240 was a hundred and five thousand today 00:51:55.240 --> 00:51:58.450 it's 61 thousand not a bad place for us 00:51:58.450 --> 00:52:00.250 to be and I would argue significantly 00:52:00.250 --> 00:52:02.410 more healthy than where we were going in 00:52:02.410 --> 00:52:04.690 to the economic downturn now let's let's 00:52:04.690 --> 00:52:06.910 take a look at what the u.s. averages 00:52:06.910 --> 00:52:09.040 are for each one of those five point six 00:52:09.040 --> 00:52:10.690 percent three point nine percent and 00:52:10.690 --> 00:52:13.270 four point six percent okay we'll take 00:52:13.270 --> 00:52:15.520 it that number starts that six point 00:52:15.520 --> 00:52:16.960 three percent on that one on the right 00:52:16.960 --> 00:52:19.750 starts to approach 8 percent we need to 00:52:19.750 --> 00:52:21.580 start having a conversation about it in 00:52:21.580 --> 00:52:23.440 our community that is the level of 00:52:23.440 --> 00:52:24.760 growth that will start to be 00:52:24.760 --> 00:52:26.290 unsustainable and something we'll need 00:52:26.290 --> 00:52:28.660 to keep an eye on if we look at it in 00:52:28.660 --> 00:52:31.540 terms of the demand for space right is 00:52:31.540 --> 00:52:33.850 this creation of jobs and what we're 00:52:33.850 --> 00:52:36.010 developing leading to this demand for 00:52:36.010 --> 00:52:37.720 space this chart has all kinds of 00:52:37.720 --> 00:52:39.430 information on it the vacancy rate and 00:52:39.430 --> 00:52:42.010 how many employees are office using and 00:52:42.010 --> 00:52:43.570 how many square feet they use and all 00:52:43.570 --> 00:52:44.770 those types of things all of which is 00:52:44.770 --> 00:52:46.450 important and I appreciate my guys 00:52:46.450 --> 00:52:47.980 putting it on here but what is 00:52:47.980 --> 00:52:50.470 critically important about this slide is 00:52:50.470 --> 00:52:52.570 that the little green line is above the 00:52:52.570 --> 00:52:54.490 little purple line which means that we 00:52:54.490 --> 00:52:56.560 are demanding more office space than we 00:52:56.560 --> 00:52:58.870 are bringing on concurrent with this 00:52:58.870 --> 00:53:01.240 fact that we are growing more rapidly we 00:53:01.240 --> 00:53:04.390 are also finding ways to utilize the 00:53:04.390 --> 00:53:06.160 existing space that we have and we are 00:53:06.160 --> 00:53:08.200 being pragmatic in terms of how much 00:53:08.200 --> 00:53:10.600 we're bringing on this chart shows the 00:53:10.600 --> 00:53:12.790 number of the amount of occupied space 00:53:12.790 --> 00:53:15.550 for every office using employee at the 00:53:15.550 --> 00:53:18.010 peak of the market sort of back sort of 00:53:18.010 --> 00:53:20.110 looking far to the right and then we go 00:53:20.110 --> 00:53:22.000 up into the recession and that number 00:53:22.000 --> 00:53:25.390 gets to 130 square feet for every office 00:53:25.390 --> 00:53:28.000 using employee why does it get to that 00:53:28.000 --> 00:53:29.830 level because when you start laying 00:53:29.830 --> 00:53:31.690 people off you've got a lot of office 00:53:31.690 --> 00:53:34.180 space out there right and so if we look 00:53:34.180 --> 00:53:36.880 today we're now at about 110 which means 00:53:36.880 --> 00:53:39.700 we are utilizing our office space in a 00:53:39.700 --> 00:53:41.920 way that's almost equally effective to a 00:53:41.920 --> 00:53:42.940 period when the 00:53:42.940 --> 00:53:45.250 vacancy rate was you know let's call it 00:53:45.250 --> 00:53:49.089 sub 6% in our community what we have is 00:53:49.089 --> 00:53:51.040 a disconnect between functional space 00:53:51.040 --> 00:53:53.260 and well located space and non 00:53:53.260 --> 00:53:54.609 functional space and stuff that's just 00:53:54.609 --> 00:53:56.319 not that well located and that's what 00:53:56.319 --> 00:53:58.180 we're seeing today and so what's working 00:53:58.180 --> 00:54:00.849 out okay and in addition to that what we 00:54:00.849 --> 00:54:02.589 are building in our community our 00:54:02.589 --> 00:54:05.020 corporate headquarters build two suits 00:54:05.020 --> 00:54:07.270 right some of the most phenomenal office 00:54:07.270 --> 00:54:09.010 developments in the entire western 00:54:09.010 --> 00:54:10.960 United States are happening right in our 00:54:10.960 --> 00:54:12.310 backyard not the least of which is 00:54:12.310 --> 00:54:14.800 something the UFC and aristocrat 00:54:14.800 --> 00:54:16.710 facilities that are recently constructed 00:54:16.710 --> 00:54:19.270 now the housing market seems to me to be 00:54:19.270 --> 00:54:21.339 something that's worthy of some extended 00:54:21.339 --> 00:54:23.500 discussion along the same lines 00:54:23.500 --> 00:54:26.290 why because housing was given all of the 00:54:26.290 --> 00:54:27.910 blame in terms of the economic downturn 00:54:27.910 --> 00:54:30.190 and seems to be getting zero of the 00:54:30.190 --> 00:54:32.290 credit in terms of coming back we've 00:54:32.290 --> 00:54:34.839 seen subdivisions have started to pop up 00:54:34.839 --> 00:54:36.339 and those types of things which is 00:54:36.339 --> 00:54:38.589 creating some concern in terms of over 00:54:38.589 --> 00:54:40.630 building within our market or price is 00:54:40.630 --> 00:54:42.730 getting out of line are we building too 00:54:42.730 --> 00:54:45.190 many houses should I buy a house is my 00:54:45.190 --> 00:54:46.900 house going to drop in value as a result 00:54:46.900 --> 00:54:49.300 I hear this question at least three 00:54:49.300 --> 00:54:51.670 times a week and so let me try and 00:54:51.670 --> 00:54:53.910 answer at the 500 people at one time on 00:54:53.910 --> 00:54:56.890 the critical way of looking at it is 00:54:56.890 --> 00:54:59.290 something we refer to as the ep ratio or 00:54:59.290 --> 00:55:01.540 the number of employees versus the 00:55:01.540 --> 00:55:02.680 number of permits that you're 00:55:02.680 --> 00:55:04.480 constructing and forgive me for getting 00:55:04.480 --> 00:55:07.060 overly technical but there are generally 00:55:07.060 --> 00:55:11.170 about 1.3 5 employees in every household 00:55:11.170 --> 00:55:13.630 it's just the way it averages out and so 00:55:13.630 --> 00:55:16.000 if that number gets out of whack if you 00:55:16.000 --> 00:55:17.829 start to permit more than that it 00:55:17.829 --> 00:55:19.390 becomes problematic if you permit less 00:55:19.390 --> 00:55:21.220 than that it becomes problematic from an 00:55:21.220 --> 00:55:24.430 over/under supply standpoint today the 00:55:24.430 --> 00:55:26.560 little purple line is what Las Vegas is 00:55:26.560 --> 00:55:28.839 doing in terms of the EP ratio which 00:55:28.839 --> 00:55:30.670 means that there are two point four 00:55:30.670 --> 00:55:33.220 employees for every home that we are 00:55:33.220 --> 00:55:35.530 constructing today with everything that 00:55:35.530 --> 00:55:37.780 we're seeing we're not building enough 00:55:37.780 --> 00:55:40.720 homes for all of the employees that we 00:55:40.720 --> 00:55:42.970 are generating and the matter of fact if 00:55:42.970 --> 00:55:44.920 we look at the Green Line which 00:55:44.920 --> 00:55:46.450 represents the United States as a whole 00:55:46.450 --> 00:55:50.170 the u.s. is building about 1.7 for 1.75 00:55:50.170 --> 00:55:53.079 houses for excuse me employees generate 00:55:53.079 --> 00:55:56.320 one additional housing unit we are under 00:55:56.320 --> 00:55:58.750 building our residential today which 00:55:58.750 --> 00:56:00.670 leaves us with some degree of comfort 00:56:00.670 --> 00:56:02.800 overall in terms of housing 00:56:02.800 --> 00:56:04.330 affordability is it getting out of whack 00:56:04.330 --> 00:56:06.850 the answers really no you can see places 00:56:06.850 --> 00:56:08.890 like the bigger numbers are actually 00:56:08.890 --> 00:56:11.410 better here so don't we excuse me don't 00:56:11.410 --> 00:56:13.630 read this in any way incorrectly UC San 00:56:13.630 --> 00:56:15.910 Francisco Los Angeles and San Jose or at 00:56:15.910 --> 00:56:17.500 the bottom in terms of housing 00:56:17.500 --> 00:56:19.390 opportunity can people actually afford a 00:56:19.390 --> 00:56:21.160 house no they cannot in those markets 00:56:21.160 --> 00:56:23.470 can they in our market yes they can if 00:56:23.470 --> 00:56:25.390 we look at the housing price index 00:56:25.390 --> 00:56:27.310 we're not even back to where we were 00:56:27.310 --> 00:56:30.640 overall now if we think about it in 00:56:30.640 --> 00:56:32.500 terms of this coming full circle let's 00:56:32.500 --> 00:56:34.330 make sure that we are clear here in 00:56:34.330 --> 00:56:36.730 terms of how it all played out this is 00:56:36.730 --> 00:56:37.870 2004 00:56:37.870 --> 00:56:40.990 excuse me 2003 to 2004 arguably the peak 00:56:40.990 --> 00:56:43.180 of the housing market the prior peak of 00:56:43.180 --> 00:56:45.430 the housing market Nevada was number one 00:56:45.430 --> 00:56:47.050 in the United States with annual 00:56:47.050 --> 00:56:50.980 appreciation of 37.2% if anyone believes 00:56:50.980 --> 00:56:53.740 that appreciation of 37.2% 00:56:53.740 --> 00:56:56.020 is in any way sustainable we can have a 00:56:56.020 --> 00:56:58.560 conversation after this meeting okay 00:56:58.560 --> 00:57:01.840 it's just not right so now let's 00:57:01.840 --> 00:57:03.370 fast-forward to the bottom of the market 00:57:03.370 --> 00:57:05.500 we go from number one in the United 00:57:05.500 --> 00:57:07.540 States we go all the way down to number 00:57:07.540 --> 00:57:10.180 50 in the United States we drop by 00:57:10.180 --> 00:57:12.280 twenty five point seven percent of 00:57:12.280 --> 00:57:13.990 course that's dramatic everyone's 00:57:13.990 --> 00:57:16.810 concerned so where are we today the most 00:57:16.810 --> 00:57:18.820 recent numbers place us in the top five 00:57:18.820 --> 00:57:21.250 yes I would prefer to be in the top 10 00:57:21.250 --> 00:57:23.860 in the top five but that number is 8 00:57:23.860 --> 00:57:27.460 percent right much more sustainable than 00:57:27.460 --> 00:57:29.350 something that's measured with a you 00:57:29.350 --> 00:57:31.630 know then thirty eight percent or twenty 00:57:31.630 --> 00:57:34.090 eight percent or even 18 percent we'll 00:57:34.090 --> 00:57:36.340 take it right we understand where it is 00:57:36.340 --> 00:57:38.350 and it's certainly not as nearly as out 00:57:38.350 --> 00:57:40.900 of whack as some have suggested now 00:57:40.900 --> 00:57:43.210 arguably most important here is this 00:57:43.210 --> 00:57:45.160 idea that people see building permits 00:57:45.160 --> 00:57:47.020 are going up and they're rising by 00:57:47.020 --> 00:57:48.940 double-digit rates and we're seeing all 00:57:48.940 --> 00:57:50.560 these subdivision comes out and we're 00:57:50.560 --> 00:57:51.760 hearing about all of these new 00:57:51.760 --> 00:57:54.190 communities that are out here these are 00:57:54.190 --> 00:57:58.060 new home market closings right 00:57:58.060 --> 00:58:00.010 how many housing units we are building 00:58:00.010 --> 00:58:02.680 and are being sold in the market on the 00:58:02.680 --> 00:58:05.560 left-hand side of the chart is what it 00:58:05.560 --> 00:58:08.080 looked like when we were going up right 00:58:08.080 --> 00:58:09.320 over 00:58:09.320 --> 00:58:11.340 40,000 housing units were being 00:58:11.340 --> 00:58:13.920 constructed the past 12 months that 00:58:13.920 --> 00:58:17.300 number is 8300 in our community today 00:58:17.300 --> 00:58:20.490 again the idea that we are getting out 00:58:20.490 --> 00:58:22.380 over our skis that it's becoming 00:58:22.380 --> 00:58:24.600 increasingly problematic yes we have 00:58:24.600 --> 00:58:26.610 things to be concerned about but I think 00:58:26.610 --> 00:58:28.470 we should take a deep breath and not be 00:58:28.470 --> 00:58:30.930 scared by our prosperity again 00:58:30.930 --> 00:58:33.360 we will be defined by our ability to 00:58:33.360 --> 00:58:36.870 sustain that prosperity over time on the 00:58:36.870 --> 00:58:38.310 far right hand side of my chart is the 00:58:38.310 --> 00:58:41.160 median price for newly constructed homes 00:58:41.160 --> 00:58:42.630 you can see that we're almost back to 00:58:42.630 --> 00:58:44.340 peak of course you also have 10 years 00:58:44.340 --> 00:58:46.230 worth of inflation in there and the 00:58:46.230 --> 00:58:48.030 reality is that home builders are just 00:58:48.030 --> 00:58:50.280 simply building bigger homes today than 00:58:50.280 --> 00:58:52.950 they did a decade ago so again we're not 00:58:52.950 --> 00:58:54.930 even very concerned about that number 00:58:54.930 --> 00:58:56.790 and for most of us sitting in the room 00:58:56.790 --> 00:58:58.530 we're much more concerned about existing 00:58:58.530 --> 00:59:00.300 homes than we are new construction 00:59:00.300 --> 00:59:02.220 because that affects each one of us or 00:59:02.220 --> 00:59:04.380 many of us I'm sure if you look at the 00:59:04.380 --> 00:59:05.670 number on the right excuse me the 00:59:05.670 --> 00:59:07.470 numbers on the left that reflects how 00:59:07.470 --> 00:59:09.090 many closings are out there very 00:59:09.090 --> 00:59:10.800 consistent with what we'd expect and on 00:59:10.800 --> 00:59:12.690 the right hand side is what we call the 00:59:12.690 --> 00:59:15.690 rollercoaster of doom ok and what the 00:59:15.690 --> 00:59:17.850 rollercoaster of doom means is that if 00:59:17.850 --> 00:59:19.950 you look on the far left-hand side of 00:59:19.950 --> 00:59:22.050 that chart this is what median closing 00:59:22.050 --> 00:59:24.360 prices were all the way back in oh three 00:59:24.360 --> 00:59:27.120 and if you little red line represents a 00:59:27.120 --> 00:59:29.010 three percent growth rate which is 00:59:29.010 --> 00:59:31.440 pretty much exactly our housing prices 00:59:31.440 --> 00:59:34.320 have appreciated over time for the past 00:59:34.320 --> 00:59:36.810 50 years now we have a period with a 00:59:36.810 --> 00:59:38.850 huge boom we have a spirit with a huge 00:59:38.850 --> 00:59:41.460 bust you wipe all of that out over about 00:59:41.460 --> 00:59:43.350 a 12 year period thirteen year period 00:59:43.350 --> 00:59:46.050 and what happens we're exactly back to 00:59:46.050 --> 00:59:47.700 the three percent growth rate that we 00:59:47.700 --> 00:59:50.010 should have been at the outset it's just 00:59:50.010 --> 00:59:52.320 markets doing what they do and if we 00:59:52.320 --> 00:59:54.000 look at new homes as a percentage of 00:59:54.000 --> 00:59:56.610 existing homes are we getting out over 00:59:56.610 --> 00:59:58.980 our skis in terms of the amount of 00:59:58.980 --> 01:00:00.900 construction versus existing inventory 01:00:00.900 --> 01:00:03.600 it is 14 and a half percent nowhere near 01:00:03.600 --> 01:00:05.340 what it was at the peak of the market 01:00:05.340 --> 01:00:08.430 when it approached 60% of existing 01:00:08.430 --> 01:00:11.610 inventory land land availability becomes 01:00:11.610 --> 01:00:13.110 this big concern I've heard rumblings 01:00:13.110 --> 01:00:15.360 about the fact that we have to go to the 01:00:15.360 --> 01:00:17.010 federal government and get them to 01:00:17.010 --> 01:00:20.520 release more land to drive down prices 01:00:20.520 --> 01:00:22.619 because those prices are coming up this 01:00:22.619 --> 01:00:24.839 the price of land that you see here we 01:00:24.839 --> 01:00:26.789 have excluded residential excuse me 01:00:26.789 --> 01:00:28.980 resort casino development that's in 01:00:28.980 --> 01:00:31.230 there so you get the idea you see that 01:00:31.230 --> 01:00:33.829 in 2007 the average price of land was 01:00:33.829 --> 01:00:36.180 $800,000 nation we all remember the land 01:00:36.180 --> 01:00:38.160 auctions and the like and now I'm going 01:00:38.160 --> 01:00:40.499 to lay over the top of that median new 01:00:40.499 --> 01:00:42.269 home price and median existing home 01:00:42.269 --> 01:00:44.549 price we'll look at the expansion we'll 01:00:44.549 --> 01:00:46.140 look at the peak we'll look at the 01:00:46.140 --> 01:00:48.240 contraction we'll look at the trough and 01:00:48.240 --> 01:00:51.630 where we are today that is with a very 01:00:51.630 --> 01:00:54.150 normal cycle and that frankly on the 01:00:54.150 --> 01:00:56.640 right hand side of my chart the distance 01:00:56.640 --> 01:00:58.890 between the price of land and the price 01:00:58.890 --> 01:01:01.109 of housing is where we would like it to 01:01:01.109 --> 01:01:02.849 be on this chart now I'm not going to 01:01:02.849 --> 01:01:04.829 say that I'm not somewhat concerned 01:01:04.829 --> 01:01:06.359 about the fact that land prices are 01:01:06.359 --> 01:01:08.759 escalating but nonetheless you get the 01:01:08.759 --> 01:01:11.579 idea of where we are versus where we 01:01:11.579 --> 01:01:13.920 were when things were overheated now if 01:01:13.920 --> 01:01:15.690 we start to see a trend that looks like 01:01:15.690 --> 01:01:17.819 what we saw in five six and seven it's 01:01:17.819 --> 01:01:19.890 time to bring the fire trucks up to the 01:01:19.890 --> 01:01:20.339 front 01:01:20.339 --> 01:01:23.640 we cannot fear our prosperity as a 01:01:23.640 --> 01:01:26.549 community there are today seventy one 01:01:26.549 --> 01:01:28.710 thousand five hundred developable acres 01:01:28.710 --> 01:01:31.890 in Southern Nevada we're developing 01:01:31.890 --> 01:01:34.230 about five thousand of those every year 01:01:34.230 --> 01:01:36.329 that's what these charts show and so we 01:01:36.329 --> 01:01:38.249 have about fourteen years worth of 01:01:38.249 --> 01:01:40.619 affected inventory left if we average 01:01:40.619 --> 01:01:43.349 everything out not bad and where we want 01:01:43.349 --> 01:01:45.960 to be if we look at this idea well we 01:01:45.960 --> 01:01:49.140 hear all the time that incomes are not 01:01:49.140 --> 01:01:50.609 keeping pace that housing prices are 01:01:50.609 --> 01:01:52.380 going up but all of our incomes are 01:01:52.380 --> 01:01:54.989 remaining they're remaining flat I read 01:01:54.989 --> 01:01:56.730 yesterday that incomes haven't gone up 01:01:56.730 --> 01:01:58.589 since 2000 or something along those 01:01:58.589 --> 01:02:00.630 lines number one that's not right number 01:02:00.630 --> 01:02:02.009 two let's just take a look at it 01:02:02.009 --> 01:02:04.079 here's household income versus home 01:02:04.079 --> 01:02:07.769 price this is what it was prior to 2004 01:02:07.769 --> 01:02:11.160 this is when incomes outstripped housing 01:02:11.160 --> 01:02:12.710 prices of course this is during the boom 01:02:12.710 --> 01:02:14.819 period since when home prices 01:02:14.819 --> 01:02:16.980 outstripped incomes when the world is 01:02:16.980 --> 01:02:18.989 coming apart and here's where we are 01:02:18.989 --> 01:02:21.599 today that Green Zone is what we would 01:02:21.599 --> 01:02:23.670 refer to as the safe zone and you will 01:02:23.670 --> 01:02:25.559 also notice that those numbers are going 01:02:25.559 --> 01:02:28.049 down not going up which is something 01:02:28.049 --> 01:02:30.779 that you know we we certainly want to 01:02:30.779 --> 01:02:33.089 keep an eye on but we're not outside of 01:02:33.089 --> 01:02:35.640 where we should be the number of homes 01:02:35.640 --> 01:02:36.210 available 01:02:36.210 --> 01:02:39.720 for sale is 1.64 in terms of available 01:02:39.720 --> 01:02:42.420 inventory I bifurcated that into the two 01:02:42.420 --> 01:02:44.849 component parts lower priced homes under 01:02:44.849 --> 01:02:48.059 300,000 on the right hand side on higher 01:02:48.059 --> 01:02:50.460 priced homes are on the excuse me above 01:02:50.460 --> 01:02:52.740 higher priced homes are beneath there 01:02:52.740 --> 01:02:54.240 and you can see that there are greater 01:02:54.240 --> 01:02:56.270 inventory of higher priced homes 01:02:56.270 --> 01:02:58.859 shockingly there are fewer buyers for 01:02:58.859 --> 01:03:00.960 million-dollar homes and therefore the 01:03:00.960 --> 01:03:02.400 inventory tends to stay a little higher 01:03:02.400 --> 01:03:04.020 Oh 01:03:04.020 --> 01:03:07.020 right now the homeowner equity right 01:03:07.020 --> 01:03:08.940 here's where we were in two thousand 01:03:08.940 --> 01:03:12.660 nine ten eleven twelve right and just to 01:03:12.660 --> 01:03:14.819 be clear we want positive we don't want 01:03:14.819 --> 01:03:16.859 negative the green can get as big as it 01:03:16.859 --> 01:03:18.690 wants to get right here we are in 01:03:18.690 --> 01:03:21.420 thirteen fourteen fifteen and sixteen 01:03:21.420 --> 01:03:24.390 again we've made huge strides in terms 01:03:24.390 --> 01:03:27.119 of reversing this trend this is the mix 01:03:27.119 --> 01:03:29.010 of property sold green is good 01:03:29.010 --> 01:03:31.950 everything else really bad we want green 01:03:31.950 --> 01:03:33.869 to be big we want everything else to be 01:03:33.869 --> 01:03:36.510 small you can see where we are if we 01:03:36.510 --> 01:03:38.490 look at it instead of looking at some of 01:03:38.490 --> 01:03:40.109 these markets and we start going to the 01:03:40.109 --> 01:03:43.500 basics what are consumers doing overall 01:03:43.500 --> 01:03:45.809 this is Clark County's taxable retail 01:03:45.809 --> 01:03:48.510 sales overall right and we are four 01:03:48.510 --> 01:03:50.970 billion dollars that's four billion 01:03:50.970 --> 01:03:53.490 dollars among the higher than we have 01:03:53.490 --> 01:03:54.480 ever been before 01:03:54.480 --> 01:03:56.549 eating and drinking places Auto Sales 01:03:56.549 --> 01:03:59.160 general merchandise are all up clothing 01:03:59.160 --> 01:04:01.380 and accessories are dropping not because 01:04:01.380 --> 01:04:03.089 people aren't buying them I assure you 01:04:03.089 --> 01:04:04.920 they are my wife and daughter 01:04:04.920 --> 01:04:06.420 single-handedly trying to keep the 01:04:06.420 --> 01:04:08.130 economy afloat right 01:04:08.130 --> 01:04:10.559 they're just doing it online okay we get 01:04:10.559 --> 01:04:13.049 it autos are slowing a little bit nation 01:04:13.049 --> 01:04:15.000 nationally thumb here that's to be 01:04:15.000 --> 01:04:17.640 expected after seven record years that's 01:04:17.640 --> 01:04:20.069 okay so we should be doing but if we're 01:04:20.069 --> 01:04:21.359 going to look at it in terms of this 01:04:21.359 --> 01:04:24.059 full circle concept where are we 01:04:24.059 --> 01:04:26.609 relative this this is inflation adjusted 01:04:26.609 --> 01:04:29.670 per capita taxable spending so we're we 01:04:29.670 --> 01:04:32.130 getting out ahead of ourselves or not so 01:04:32.130 --> 01:04:34.020 let's just draw the average over the 01:04:34.020 --> 01:04:36.930 30-year period we remain below the 01:04:36.930 --> 01:04:39.119 average today which means that spending 01:04:39.119 --> 01:04:41.400 could escalate some and we would still 01:04:41.400 --> 01:04:43.650 be in the healthy zone that area with 01:04:43.650 --> 01:04:46.799 the peaks up there Oh 405 and oh six or 01:04:46.799 --> 01:04:49.380 we get anywhere near that it's time to 01:04:49.380 --> 01:04:49.920 have 01:04:49.920 --> 01:04:52.500 conversation overall and we know that 01:04:52.500 --> 01:04:54.960 taxable retail sales are changing we get 01:04:54.960 --> 01:04:58.349 it the red area is non store retailers 01:04:58.349 --> 01:05:00.180 you will refer to them as places like 01:05:00.180 --> 01:05:02.460 Amazon and things like that right you 01:05:02.460 --> 01:05:04.680 get this idea they're growing these 01:05:04.680 --> 01:05:06.210 other ones they're not growing quite as 01:05:06.210 --> 01:05:08.730 quickly okay that's just things are 01:05:08.730 --> 01:05:10.799 changing and we know that we're sort of 01:05:10.799 --> 01:05:12.690 trading this bricks and mortar retail 01:05:12.690 --> 01:05:15.569 for more distribution space so let's 01:05:15.569 --> 01:05:17.910 take a look at whether our economy is 01:05:17.910 --> 01:05:20.520 adapting to this new reality on the 01:05:20.520 --> 01:05:22.260 left-hand side is retail on the 01:05:22.260 --> 01:05:25.049 right-hand side is industrial yes the 01:05:25.049 --> 01:05:27.270 retail rate is elevated but dropping the 01:05:27.270 --> 01:05:29.940 industrial area where retailers are now 01:05:29.940 --> 01:05:32.099 actually doing their retailing 01:05:32.099 --> 01:05:34.500 essentially fulfillment centers if you 01:05:34.500 --> 01:05:37.040 will are down to six point nine percent 01:05:37.040 --> 01:05:40.470 overall if we look at completions versus 01:05:40.470 --> 01:05:42.780 absorption the green line and the purple 01:05:42.780 --> 01:05:44.880 line aligned with one another like we 01:05:44.880 --> 01:05:47.040 talked about with the office market yes 01:05:47.040 --> 01:05:49.770 they are if we look at planned and under 01:05:49.770 --> 01:05:51.780 construction no we're not building 01:05:51.780 --> 01:05:54.540 retail because we shouldn't right and on 01:05:54.540 --> 01:05:56.400 the other side we're building industrial 01:05:56.400 --> 01:05:58.559 because that's where everybody is going 01:05:58.559 --> 01:06:01.530 and yes it is at peak levels currently 01:06:01.530 --> 01:06:04.200 under construction space is sourced 100% 01:06:04.200 --> 01:06:07.410 to distribution centers exactly how it 01:06:07.410 --> 01:06:09.869 should be overall and if we're asking 01:06:09.869 --> 01:06:11.760 the question about whether we're getting 01:06:11.760 --> 01:06:13.770 out over our skis whether we're building 01:06:13.770 --> 01:06:16.799 too much let's look at whether the 01:06:16.799 --> 01:06:18.960 future development as a share of planned 01:06:18.960 --> 01:06:21.930 inventory for retail in the peak period 01:06:21.930 --> 01:06:23.760 we were we essentially had under 01:06:23.760 --> 01:06:26.400 construction 36 percent of our market 01:06:26.400 --> 01:06:30.240 today at 7.3 for industrial we had 14 01:06:30.240 --> 01:06:32.579 percent today we're at 11 again well 01:06:32.579 --> 01:06:35.160 within the range of normalcy we look at 01:06:35.160 --> 01:06:37.440 large store closings and this makes us 01:06:37.440 --> 01:06:39.569 nervous and we tend to ignore that the 01:06:39.569 --> 01:06:42.210 guys on the right are building on 01:06:42.210 --> 01:06:44.460 occupying or occupying and maybe not 01:06:44.460 --> 01:06:47.430 building 2 million square feet in the 01:06:47.430 --> 01:06:49.859 last year alone this is simply a 01:06:49.859 --> 01:06:52.319 transitional step relative to our 01:06:52.319 --> 01:06:53.430 economy overall 01:06:53.430 --> 01:06:56.069 now wrap all that up is of the big green 01:06:56.069 --> 01:06:58.170 area that I showed you on my chart has 01:06:58.170 --> 01:07:00.089 to do with tourism and tourism related 01:07:00.089 --> 01:07:02.410 activity our growth and visitor 01:07:02.410 --> 01:07:04.480 volume is significant and it continues 01:07:04.480 --> 01:07:05.920 to be incredibly important to us in I'd 01:07:05.920 --> 01:07:09.520 like talking about that is critical one 01:07:09.520 --> 01:07:11.710 in six people one in six people that 01:07:11.710 --> 01:07:13.809 puts a head in a bed on any given night 01:07:13.809 --> 01:07:16.630 is not a resident of Southern Nevada 01:07:16.630 --> 01:07:18.880 that's how big our visitor economy is 01:07:18.880 --> 01:07:20.740 and that is bigger than almost anywhere 01:07:20.740 --> 01:07:22.660 else in the entire United States where 01:07:22.660 --> 01:07:25.119 are they coming from Western United 01:07:25.119 --> 01:07:26.530 States we want to get that international 01:07:26.530 --> 01:07:28.750 all the way up to thirty we're working 01:07:28.750 --> 01:07:31.270 on it but we're setting records relative 01:07:31.270 --> 01:07:33.280 to visitation overall and in particular 01:07:33.280 --> 01:07:35.799 convention visitors who spend more 01:07:35.799 --> 01:07:37.599 generate more stay longer all those 01:07:37.599 --> 01:07:39.069 things than their traditional these 01:07:39.069 --> 01:07:41.410 leisure counterparts McCarran 01:07:41.410 --> 01:07:43.000 International Airport is today the 01:07:43.000 --> 01:07:45.099 eighth busiest airport in the entire 01:07:45.099 --> 01:07:47.220 United States it's the second largest 01:07:47.220 --> 01:07:49.359 destination and origination I should say 01:07:49.359 --> 01:07:50.740 that differently origination and 01:07:50.740 --> 01:07:52.809 destination Airport in the United States 01:07:52.809 --> 01:07:54.760 someone is going to have to explain to 01:07:54.760 --> 01:07:58.150 me why we care about someone flying into 01:07:58.150 --> 01:08:00.460 an airport staying on a plane and flying 01:08:00.460 --> 01:08:03.280 somewhere else right makes no sense to 01:08:03.280 --> 01:08:05.170 me whatsoever but we count it anyway 01:08:05.170 --> 01:08:07.029 this is when we take all of that out 01:08:07.029 --> 01:08:09.490 we'll take the people that stay someone 01:08:09.490 --> 01:08:11.170 else because Atlanta can have all the 01:08:11.170 --> 01:08:12.430 people who just want to go through 01:08:12.430 --> 01:08:16.420 whatever right the LDC VA is absolutely 01:08:16.420 --> 01:08:19.029 should be commended for being able to 01:08:19.029 --> 01:08:22.359 expand our international reach with all 01:08:22.359 --> 01:08:24.429 of these new flights including one to 01:08:24.429 --> 01:08:26.140 Beijing China which would be critically 01:08:26.140 --> 01:08:28.448 important overall and again thinking 01:08:28.448 --> 01:08:30.399 about it in terms of coming full circle 01:08:30.399 --> 01:08:32.439 on the left-hand side of my chart is the 01:08:32.439 --> 01:08:34.569 occupancy rate on the right hand side is 01:08:34.569 --> 01:08:36.910 the average daily room rate these are 01:08:36.910 --> 01:08:39.130 the two factors that will become they 01:08:39.130 --> 01:08:40.719 will become critical in determining 01:08:40.719 --> 01:08:43.509 whether we make reinvestment here we are 01:08:43.509 --> 01:08:45.790 approaching 90 percent not quite where 01:08:45.790 --> 01:08:47.979 we were but approaching 90 percent and 01:08:47.979 --> 01:08:51.100 on the right hand side ADR is 128 01:08:51.100 --> 01:08:53.319 dollars per night almost back to the 01:08:53.319 --> 01:08:55.299 peak but something we didn't have in 01:08:55.299 --> 01:08:58.899 2007 and 2008 is the resort fee which is 01:08:58.899 --> 01:09:01.779 also added on which means we are at peak 01:09:01.779 --> 01:09:04.689 ADR today all of that having been said 01:09:04.689 --> 01:09:06.488 let's wrap it all up and put a bow on it 01:09:06.488 --> 01:09:07.929 because everyone wants to focus at least 01:09:07.929 --> 01:09:10.330 the national media does on this concept 01:09:10.330 --> 01:09:13.420 that gaming revenue is below where it 01:09:13.420 --> 01:09:16.198 should be or has not grown ignoring 01:09:16.198 --> 01:09:18.179 fact that Las Vegas trip total revenue 01:09:18.179 --> 01:09:20.939 is up to eleven point two billion not 01:09:20.939 --> 01:09:22.349 only the highest level that it's ever 01:09:22.349 --> 01:09:25.439 been but blowing the previous piece out 01:09:25.439 --> 01:09:28.439 of the water if we look at the amount of 01:09:28.439 --> 01:09:30.448 development and I will tell you Jonas's 01:09:30.448 --> 01:09:32.519 map is much more extensive than this and 01:09:32.519 --> 01:09:33.479 you should really take a look at it 01:09:33.479 --> 01:09:35.189 because I think it's super cool but if 01:09:35.189 --> 01:09:36.839 we look at it in terms of development 01:09:36.839 --> 01:09:38.309 that has recently happened on the strip 01:09:38.309 --> 01:09:40.349 whereas occurring there seven point 01:09:40.349 --> 01:09:42.569 eight billion dollars and I've talked a 01:09:42.569 --> 01:09:44.399 lot about the amount of development 01:09:44.399 --> 01:09:46.049 that's happening in our community 01:09:46.049 --> 01:09:48.059 because I think it's great but if we're 01:09:48.059 --> 01:09:49.469 going to ask the question is are we 01:09:49.469 --> 01:09:51.899 building too much here's what those 01:09:51.899 --> 01:09:54.749 numbers look like in 2007 when we had 01:09:54.749 --> 01:09:57.869 forty five point eight billion dollars 01:09:57.869 --> 01:10:00.510 worth of project on the books forty five 01:10:00.510 --> 01:10:02.219 point eight billion how much do we have 01:10:02.219 --> 01:10:02.719 today 01:10:02.719 --> 01:10:05.969 fourteen point 1 billion dollars on the 01:10:05.969 --> 01:10:07.769 books there are communities all over the 01:10:07.769 --> 01:10:08.969 United States that would give their 01:10:08.969 --> 01:10:11.489 eyeteeth to have 14 point 1 billion 01:10:11.489 --> 01:10:13.440 dollars worth of projects on the books 01:10:13.440 --> 01:10:16.079 but before we freaked out about the fact 01:10:16.079 --> 01:10:17.340 that we're all building too much and 01:10:17.340 --> 01:10:18.690 there's not going to be enough glass and 01:10:18.690 --> 01:10:20.369 not enough concrete and we just can't 01:10:20.369 --> 01:10:22.170 handle this much growth I think we 01:10:22.170 --> 01:10:23.729 should put it all in a little bit of 01:10:23.729 --> 01:10:26.550 perspective and what we are building is 01:10:26.550 --> 01:10:28.590 based on bringing people here for 01:10:28.590 --> 01:10:30.539 special events stadiums convention 01:10:30.539 --> 01:10:32.249 centers all those things because we have 01:10:32.249 --> 01:10:35.999 assets that we can leverage 150,000 01:10:35.999 --> 01:10:37.709 hotel rooms the second busiest airport 01:10:37.709 --> 01:10:40.530 in the United States restaurants dining 01:10:40.530 --> 01:10:43.289 all those types of things but Las Vegas 01:10:43.289 --> 01:10:45.239 is just as important for those events as 01:10:45.239 --> 01:10:48.179 as we are to them as they are to us it's 01:10:48.179 --> 01:10:51.179 a symbiotic relationship I hear it all 01:10:51.179 --> 01:10:52.650 the time because of the work we do on 01:10:52.650 --> 01:10:54.869 the stadium and other things on the 01:10:54.869 --> 01:10:56.070 left-hand side it's the pac-12 01:10:56.070 --> 01:10:58.139 tournament these are the attendance 01:10:58.139 --> 01:11:00.599 numbers when it was in Los Angeles the 01:11:00.599 --> 01:11:02.249 numbers on the right hand side are the 01:11:02.249 --> 01:11:03.780 attendance numbers when it came to Las 01:11:03.780 --> 01:11:05.429 Vegas what about the Mountain West 01:11:05.429 --> 01:11:09.059 tournament Las Vegas mm oh three they 01:11:09.059 --> 01:11:10.979 moved to Denver surprise surprise they 01:11:10.979 --> 01:11:12.920 move it back this is why it works 01:11:12.920 --> 01:11:15.209 Terrence is telling me that I have to 01:11:15.209 --> 01:11:16.650 wrap it up so I'm going to go a little 01:11:16.650 --> 01:11:17.940 bit quickly and you forgive me he's 01:11:17.940 --> 01:11:21.179 great and I need to get it done the 01:11:21.179 --> 01:11:23.789 other side of this is that when we think 01:11:23.789 --> 01:11:26.489 about it overall the economic 01:11:26.489 --> 01:11:28.170 implications of those special events are 01:11:28.170 --> 01:11:29.110 massive 01:11:29.110 --> 01:11:34.150 right Super Bowl Houston Texas 138,000 01:11:34.150 --> 01:11:36.489 Super Bowl visitors and 350 million 01:11:36.489 --> 01:11:38.230 dollars of impact that's why I was so 01:11:38.230 --> 01:11:39.790 great to see the article in the 01:11:39.790 --> 01:11:41.350 newspaper today that they're talking 01:11:41.350 --> 01:11:43.330 about potentially getting us a Super 01:11:43.330 --> 01:11:47.679 Bowl in two thousand 2023 or 2024 01:11:47.679 --> 01:11:50.139 hopefully it happens but we cannot 01:11:50.139 --> 01:11:52.300 forget about the fact that while Houston 01:11:52.300 --> 01:11:54.100 was hosting the Super Bowl with a 01:11:54.100 --> 01:11:55.480 hundred and thirty eight thousand people 01:11:55.480 --> 01:11:57.730 we had three hundred thousand people 01:11:57.730 --> 01:11:59.800 that showed up for Super Bowl weekend 01:11:59.800 --> 01:12:04.929 right while we were here almost on our 01:12:04.929 --> 01:12:07.750 phone convention centers are phenomenal 01:12:07.750 --> 01:12:09.520 we have among the best in the entire 01:12:09.520 --> 01:12:12.159 country we have been atop the list for 01:12:12.159 --> 01:12:14.920 the past 22 years and the business tax 01:12:14.920 --> 01:12:16.929 climate has benefited from this amount 01:12:16.929 --> 01:12:19.389 we reach the tourists generate two 01:12:19.389 --> 01:12:22.150 billion dollars in taxes for us every 01:12:22.150 --> 01:12:23.980 single year I'm not going to spend a 01:12:23.980 --> 01:12:25.690 whole lot of time here other than saying 01:12:25.690 --> 01:12:27.790 those are all of the states that have an 01:12:27.790 --> 01:12:30.130 individual income tax and we're not one 01:12:30.130 --> 01:12:32.170 of them because 43 million people 01:12:32.170 --> 01:12:34.330 decided to get in a car or get in a 01:12:34.330 --> 01:12:36.280 plane and come here and spend money and 01:12:36.280 --> 01:12:37.840 if you don't believe me this is what 01:12:37.840 --> 01:12:39.880 your sales tax raise property tax rates 01:12:39.880 --> 01:12:42.969 and personal income tax rate would be if 01:12:42.969 --> 01:12:45.760 they didn't exist today we need to 01:12:45.760 --> 01:12:48.340 preserve that sector of our economy at 01:12:48.340 --> 01:12:54.369 all cost those are huge numbers these 01:12:54.369 --> 01:12:55.920 are the companies we're bringing in 01:12:55.920 --> 01:12:58.150 northern nevada is also getting them we 01:12:58.150 --> 01:13:00.190 are innovating over all these are 01:13:00.190 --> 01:13:02.080 companies we all know them they're 01:13:02.080 --> 01:13:04.210 making great steps and great progress 01:13:04.210 --> 01:13:06.760 but I do not want to minimize small 01:13:06.760 --> 01:13:09.880 business development in our community we 01:13:09.880 --> 01:13:11.530 have more businesses here than we have 01:13:11.530 --> 01:13:13.659 ever had before we've created ninety two 01:13:13.659 --> 01:13:17.949 hundred businesses since 2010 thank you 01:13:17.949 --> 01:13:19.869 to the LV Gea because they have been 01:13:19.869 --> 01:13:22.030 critical as well as each one of you in 01:13:22.030 --> 01:13:23.320 making that happen 01:13:23.320 --> 01:13:26.170 overall my friends at Nevada state bank 01:13:26.170 --> 01:13:28.630 asked for this idea of power small 01:13:28.630 --> 01:13:30.369 business folks thinking about all of 01:13:30.369 --> 01:13:32.080 this we asked them are you optimistic 01:13:32.080 --> 01:13:34.000 about the economy they are more 01:13:34.000 --> 01:13:36.070 optimistic than they have been at any 01:13:36.070 --> 01:13:38.530 point in the past five years do you plan 01:13:38.530 --> 01:13:40.510 to expand over the next 12 months do you 01:13:40.510 --> 01:13:41.570 think things are going to get 01:13:41.570 --> 01:13:43.820 over the 12 next 12 months yes they do 01:13:43.820 --> 01:13:48.500 in closing yes things are okay we're 01:13:48.500 --> 01:13:50.660 doing better where we're finding our 01:13:50.660 --> 01:13:53.210 footing but I'm always reminded of the 01:13:53.210 --> 01:13:55.430 salient words those who cannot remember 01:13:55.430 --> 01:13:57.800 the past are condemned to repeat it we 01:13:57.800 --> 01:14:01.310 cannot ignore where we were when all of 01:14:01.310 --> 01:14:02.690 development we couldn't handle so we 01:14:02.690 --> 01:14:05.660 were spilling over into Arizona Las 01:14:05.660 --> 01:14:08.990 Vegas Waze billion-dollar reliever 01:14:08.990 --> 01:14:11.030 Airport right we don't have enough room 01:14:11.030 --> 01:14:13.970 it can so we're going to build Ivanpah 01:14:13.970 --> 01:14:15.980 right least affordable real estate 01:14:15.980 --> 01:14:17.960 market in the United States these are 01:14:17.960 --> 01:14:19.970 the type of articles that were coming 01:14:19.970 --> 01:14:24.020 out when we were at our absolute peak we 01:14:24.020 --> 01:14:26.810 cannot let this happen again Las Vegas 01:14:26.810 --> 01:14:28.610 closing on another full house I love 01:14:28.610 --> 01:14:29.750 that they have to come up with some type 01:14:29.750 --> 01:14:31.670 of gambling analogy no matter what they 01:14:31.670 --> 01:14:33.350 write anyway that's my own personal 01:14:33.350 --> 01:14:35.360 problem condo mania in the West and as 01:14:35.360 --> 01:14:37.850 we all remember the Manhattan ization of 01:14:37.850 --> 01:14:40.700 Las Vegas right this is a map we 01:14:40.700 --> 01:14:42.140 actually been doing this presentation 01:14:42.140 --> 01:14:44.720 since 2007 this is my 10th year doing it 01:14:44.720 --> 01:14:46.310 I'm very thankful for that 01:14:46.310 --> 01:14:48.200 this is a map we used in the very first 01:14:48.200 --> 01:14:50.240 one of all the plans proposed or under 01:14:50.240 --> 01:14:52.730 construction condos that were in 01:14:52.730 --> 01:14:55.070 Southern Nevada almost none of them were 01:14:55.070 --> 01:14:57.080 actually built right this is where we 01:14:57.080 --> 01:14:58.880 can't go because we've got to come full 01:14:58.880 --> 01:15:01.520 circle so let's just fix let's talk just 01:15:01.520 --> 01:15:03.350 for one minute and I promise I'll get 01:15:03.350 --> 01:15:05.270 down from where we are downtown 01:15:05.270 --> 01:15:06.920 Summerlin stall during the economic 01:15:06.920 --> 01:15:08.990 downturn this is what it looks like 01:15:08.990 --> 01:15:11.510 today we can be proud of that 01:15:11.510 --> 01:15:13.220 the folks at Summerlin should be 01:15:13.220 --> 01:15:18.370 incredibly proud of that yeah thank you 01:15:19.989 --> 01:15:22.610 anyway they know the statistics only see 01:15:22.610 --> 01:15:24.530 Manhattan West all during the economic 01:15:24.530 --> 01:15:26.120 downturn this is what it looks like 01:15:26.120 --> 01:15:28.580 today here's the Kyle Canyon master plan 01:15:28.580 --> 01:15:31.190 1,700 acres was foreclosed on here's 01:15:31.190 --> 01:15:32.840 what it looks like today the folks the 01:15:32.840 --> 01:15:34.969 city of Las Vegas think Stavros was here 01:15:34.969 --> 01:15:36.770 congratulations on what you guys have 01:15:36.770 --> 01:15:38.900 been able to do a salon stalled during 01:15:38.900 --> 01:15:40.700 economic downturn recently announced 01:15:40.700 --> 01:15:41.840 they're getting that project going 01:15:41.840 --> 01:15:43.430 forward and it'll be happening pretty 01:15:43.430 --> 01:15:45.950 soon interstate 11 of course has that 01:15:45.950 --> 01:15:48.530 met any number of delays and now is 01:15:48.530 --> 01:15:51.200 actually going to happen City Center if 01:15:51.200 --> 01:15:52.670 anyone's ever heard Jim Murr and talked 01:15:52.670 --> 01:15:54.410 about how close it was to closing down 01:15:54.410 --> 01:15:56.270 it didn't and not only have they 01:15:56.270 --> 01:15:57.650 finished that project that they double 01:15:57.650 --> 01:15:59.360 down with building the t-mobile Arena 01:15:59.360 --> 01:16:00.770 which will probably be among the most 01:16:00.770 --> 01:16:03.230 productive arenas in the entire United 01:16:03.230 --> 01:16:05.330 States when everything's added up for 01:16:05.330 --> 01:16:07.250 its first year of operation and the very 01:16:07.250 --> 01:16:10.160 last one south strip right this property 01:16:10.160 --> 01:16:12.680 was foreclosed on 62 acres there off the 01:16:12.680 --> 01:16:14.960 freeway it's going to be the home of the 01:16:14.960 --> 01:16:16.760 new Las Vegas Stadium thank you very 01:16:16.760 --> 01:16:18.969 much 01:16:23.199 --> 01:16:29.499 sigh landing was that powerful did you 01:16:29.499 --> 01:16:31.030 enjoy that can we get another round of 01:16:31.030 --> 01:16:37.959 applause awesome awesome for our next 01:16:37.959 --> 01:16:40.269 segment you guys are in for a treat we 01:16:40.269 --> 01:16:42.969 wanted to show you a look at the future 01:16:42.969 --> 01:16:47.949 of gaming we have the best expert in the 01:16:47.949 --> 01:16:49.929 entire country to talk to you about that 01:16:49.929 --> 01:16:51.130 particular project 01:16:51.130 --> 01:16:52.959 Jeff Freeman is the CEO of the American 01:16:52.959 --> 01:16:55.719 Gaming Association he is a global leader 01:16:55.719 --> 01:16:58.090 he is responsible for positioning 01:16:58.090 --> 01:17:00.729 commercial and tribal gaming for success 01:17:00.729 --> 01:17:03.249 and he's also a powerhouse speaker 01:17:03.249 --> 01:17:05.380 please help me welcome to the stage 01:17:05.380 --> 01:17:15.699 Jeff Freeman so I'm thinking of starting 01:17:15.699 --> 01:17:17.920 every speech with that sex with a dead 01:17:17.920 --> 01:17:22.709 person joke it's bound to get - laughs 01:17:22.709 --> 01:17:24.820 congresswoman Buerkle had to leave so 01:17:24.820 --> 01:17:26.229 it's even better I'd say this in her 01:17:26.229 --> 01:17:28.449 absence I've been in Washington 20 years 01:17:28.449 --> 01:17:30.610 I've met with a lot of members of 01:17:30.610 --> 01:17:33.249 Congress I have never met someone who 01:17:33.249 --> 01:17:35.199 was a greater champion for an industry 01:17:35.199 --> 01:17:37.599 for a city for a state than 01:17:37.599 --> 01:17:39.550 congresswoman Buerkle was she was a 01:17:39.550 --> 01:17:41.920 tremendous champion for this area and 01:17:41.920 --> 01:17:43.420 it's something for which all of you 01:17:43.420 --> 01:17:46.119 should be quite proud we have today 01:17:46.119 --> 01:17:48.099 great champions from Nevada we 01:17:48.099 --> 01:17:50.019 appreciate the support from Nevada but 01:17:50.019 --> 01:17:51.579 not for one second should we forget what 01:17:51.579 --> 01:17:53.409 congresswoman Buerkle did it's also 01:17:53.409 --> 01:17:55.179 great to follow geremy what great energy 01:17:55.179 --> 01:17:58.059 we'll great - enthusiasm and passion for 01:17:58.059 --> 01:18:00.190 this area and the message that I heard 01:18:00.190 --> 01:18:02.679 there was fantastic about embrace the 01:18:02.679 --> 01:18:05.469 prosperity embrace what this area this 01:18:05.469 --> 01:18:08.409 region has accomplished figure out how 01:18:08.409 --> 01:18:10.179 we sustain that figure out how we 01:18:10.179 --> 01:18:12.190 capitalize on it you know that same 01:18:12.190 --> 01:18:14.110 message actually applies to the gaming 01:18:14.110 --> 01:18:15.550 industry and I'm excited to talk a 01:18:15.550 --> 01:18:17.739 little bit about that today before I get 01:18:17.739 --> 01:18:19.599 started I want to thank Jonas I want to 01:18:19.599 --> 01:18:21.729 thank the LB Gea I really appreciate the 01:18:21.729 --> 01:18:23.499 invitation here and what congratulate 01:18:23.499 --> 01:18:24.789 you for everything you've done in this 01:18:24.789 --> 01:18:26.920 area supporting the economy here in 01:18:26.920 --> 01:18:27.309 Nevada 01:18:27.309 --> 01:18:29.440 I represent a national industry I'm 01:18:29.440 --> 01:18:31.539 based in Washington a national 01:18:31.539 --> 01:18:33.639 organization but I believe everything 01:18:33.639 --> 01:18:35.380 we're doing whether we're doing it in 01:18:35.380 --> 01:18:35.840 Nevada 01:18:35.840 --> 01:18:37.429 New Jersey where I'll be tonight in 01:18:37.429 --> 01:18:39.560 Atlantic City or whether we're doing in 01:18:39.560 --> 01:18:41.210 Missouri or any other state that is 01:18:41.210 --> 01:18:43.699 gaming it all comes back to helping Las 01:18:43.699 --> 01:18:45.409 Vegas it all comes back to helping 01:18:45.409 --> 01:18:47.449 Nevada so let me talk a little bit about 01:18:47.449 --> 01:18:49.940 who this industry is right now where 01:18:49.940 --> 01:18:51.830 we're going and the great opportunities 01:18:51.830 --> 01:18:53.510 we have ahead because this is an 01:18:53.510 --> 01:18:55.639 exciting time in the gaming industry not 01:18:55.639 --> 01:18:56.840 just because we've got great new 01:18:56.840 --> 01:18:58.429 properties opening we've got new markets 01:18:58.429 --> 01:19:01.699 emerging we've got a former casino owner 01:19:01.699 --> 01:19:06.010 as president of the United States and 01:19:06.010 --> 01:19:09.409 whatever you might think of President 01:19:09.409 --> 01:19:13.610 Trump for this industry that only says 01:19:13.610 --> 01:19:17.389 opportunity that only says we've got an 01:19:17.389 --> 01:19:19.280 opportunity to do something great that 01:19:19.280 --> 01:19:21.949 we haven't had before so let's talk 01:19:21.949 --> 01:19:23.989 about why we have that opportunity 01:19:23.989 --> 01:19:24.949 because I think it's important that we 01:19:24.949 --> 01:19:26.659 embrace that and then let's talk about 01:19:26.659 --> 01:19:29.239 how we capitalize on this industry today 01:19:29.239 --> 01:19:31.070 this industry that just started right 01:19:31.070 --> 01:19:34.790 here in Nevada is today a 240 billion 01:19:34.790 --> 01:19:37.790 dollar industry across 40 states in the 01:19:37.790 --> 01:19:42.320 US 1.7 million jobs supported nearly 40 01:19:42.320 --> 01:19:45.080 billion dollars in tax revenue this 01:19:45.080 --> 01:19:48.889 industry is a major economic force and 01:19:48.889 --> 01:19:52.310 it's only growing in the latest year for 01:19:52.310 --> 01:19:54.199 which we have data available commercial 01:19:54.199 --> 01:19:57.260 gaming did 39 billion dollars in revenue 01:19:57.260 --> 01:20:00.530 tribal gaming 30 billion dollars in 01:20:00.530 --> 01:20:02.900 revenue nearly seventy billion dollars 01:20:02.900 --> 01:20:05.389 in revenue between these these two 01:20:05.389 --> 01:20:07.969 entities commercial and tribal this is a 01:20:07.969 --> 01:20:10.699 massive economic force in communities 01:20:10.699 --> 01:20:13.219 across the country and that economic 01:20:13.219 --> 01:20:16.219 footprint now speaks to the increasing 01:20:16.219 --> 01:20:18.800 mainstream nature of our industry you 01:20:18.800 --> 01:20:20.090 know when you look at the critics of 01:20:20.090 --> 01:20:22.489 gaming the critics of gaming only exist 01:20:22.489 --> 01:20:24.500 in the communities in which we don't do 01:20:24.500 --> 01:20:26.750 business and the communities in which 01:20:26.750 --> 01:20:29.540 casinos operate were strong community 01:20:29.540 --> 01:20:32.210 partners and we are incredible economic 01:20:32.210 --> 01:20:34.639 generators and that's a big part of the 01:20:34.639 --> 01:20:37.070 opportunity we have ahead the second 01:20:37.070 --> 01:20:38.750 part of the opportunity we have ahead 01:20:38.750 --> 01:20:41.750 and more to that mainstream nature of 01:20:41.750 --> 01:20:43.820 this industry is the improving 01:20:43.820 --> 01:20:46.639 perception of this industry as all of 01:20:46.639 --> 01:20:49.489 you know this October the Vegas golden 01:20:49.489 --> 01:20:49.760 eye 01:20:49.760 --> 01:20:51.670 we'll kick off their inaugural season 01:20:51.670 --> 01:20:54.590 the Raiders will arrive in one two three 01:20:54.590 --> 01:20:57.280 years of stadium not too far after that 01:20:57.280 --> 01:21:00.140 we had a presidential debate last year 01:21:00.140 --> 01:21:02.780 here in Las Vegas and as I said we have 01:21:02.780 --> 01:21:04.730 a president who's a former casino owner 01:21:04.730 --> 01:21:07.070 and one of the most amazing aspects 01:21:07.070 --> 01:21:08.870 about that and there are a lot of 01:21:08.870 --> 01:21:10.820 amazing aspects about that one of the 01:21:10.820 --> 01:21:13.430 most amazing aspects about that the act 01:21:13.430 --> 01:21:16.340 of owning casinos never came up during 01:21:16.340 --> 01:21:19.520 the campaign the act of managing and the 01:21:19.520 --> 01:21:21.020 ability to manage it came up a couple 01:21:21.020 --> 01:21:23.210 times but the act of owning casinos 01:21:23.210 --> 01:21:25.910 never came up so just as Jeremy was 01:21:25.910 --> 01:21:27.770 talking about the prosperity here in in 01:21:27.770 --> 01:21:30.020 Las Vegas and in this area think about 01:21:30.020 --> 01:21:31.970 the prosperity of 2016 01:21:31.970 --> 01:21:33.920 think of all the things that happen in 01:21:33.920 --> 01:21:36.260 that year and ask yourself would that 01:21:36.260 --> 01:21:38.180 have happened 10 years ago would have 01:21:38.180 --> 01:21:40.790 happened five years ago in your wildest 01:21:40.790 --> 01:21:42.350 dreams did you think all of these things 01:21:42.350 --> 01:21:44.810 would happen just last year this 01:21:44.810 --> 01:21:47.930 industry has come incredibly far in 01:21:47.930 --> 01:21:51.050 terms of being a mainstream player in 01:21:51.050 --> 01:21:53.510 the American economy in terms of being 01:21:53.510 --> 01:21:55.850 accepted coast-to-coast eighty-five 01:21:55.850 --> 01:21:57.500 percent of the American public now 01:21:57.500 --> 01:21:58.910 saying that they're perfectly 01:21:58.910 --> 01:22:01.130 comfortable with casinos for themselves 01:22:01.130 --> 01:22:03.110 their friends their family were 01:22:03.110 --> 01:22:05.060 mainstream how do we take advantage of 01:22:05.060 --> 01:22:07.010 it these are the external factors that 01:22:07.010 --> 01:22:09.290 are helping us as an industry there are 01:22:09.290 --> 01:22:11.390 also several I think internal and excuse 01:22:11.390 --> 01:22:13.010 me internal factors inter industry 01:22:13.010 --> 01:22:15.820 factors that are changing who we are 01:22:15.820 --> 01:22:17.600 increasingly I want to talk about these 01:22:17.600 --> 01:22:20.540 three increasingly or a unified industry 01:22:20.540 --> 01:22:22.310 for those of you that have been in Las 01:22:22.310 --> 01:22:24.020 Vegas for some time for those of you 01:22:24.020 --> 01:22:25.130 that have been close to the gaming 01:22:25.130 --> 01:22:27.700 industry you know that unity 01:22:27.700 --> 01:22:30.650 collaboration these are not hallmarks of 01:22:30.650 --> 01:22:33.620 the casino gaming industry but they are 01:22:33.620 --> 01:22:37.370 critical to our future success I often 01:22:37.370 --> 01:22:39.080 talk about my own team asked me not to 01:22:39.080 --> 01:22:40.730 talk about it but we're much better at 01:22:40.730 --> 01:22:42.380 having a circular firing squad in this 01:22:42.380 --> 01:22:44.360 industry than we are about getting in a 01:22:44.360 --> 01:22:46.250 straight line and focusing on a common 01:22:46.250 --> 01:22:48.260 target increasingly we're identifying 01:22:48.260 --> 01:22:51.860 who when what that common target is the 01:22:51.860 --> 01:22:53.690 American Gaming Association of today my 01:22:53.690 --> 01:22:55.790 organization was created it was modeled 01:22:55.790 --> 01:22:57.590 after the Motion Picture Association if 01:22:57.590 --> 01:22:58.730 you know anything about that 01:22:58.730 --> 01:23:01.100 organization Jack Valenti created it 01:23:01.100 --> 01:23:02.929 years ago it was the Six Day 01:23:02.929 --> 01:23:05.479 studio heads in Los Angeles and they 01:23:05.479 --> 01:23:06.889 created this organization in Washington 01:23:06.889 --> 01:23:09.079 and they sent him one of two messages 01:23:09.079 --> 01:23:11.090 either do what we tell you to do or 01:23:11.090 --> 01:23:11.959 leave us the hell alone 01:23:11.959 --> 01:23:14.269 that was the MPAA message AG a 01:23:14.269 --> 01:23:17.059 simplified that it created the big you 01:23:17.059 --> 01:23:18.320 know the big six from here on the Las 01:23:18.320 --> 01:23:20.150 Vegas Strip it had one simple message 01:23:20.150 --> 01:23:21.860 for Washington leave us the hell alone 01:23:21.860 --> 01:23:25.130 and that was the exclusive club that the 01:23:25.130 --> 01:23:28.340 HEA was today we're different today we 01:23:28.340 --> 01:23:30.050 represent that unified industry that 01:23:30.050 --> 01:23:32.329 gaming is becoming we represent ninety 01:23:32.329 --> 01:23:34.039 percent of all the revenue and 01:23:34.039 --> 01:23:36.409 commercial gaming ninety five percent of 01:23:36.409 --> 01:23:38.869 all the supplier revenue that's critical 01:23:38.869 --> 01:23:41.570 to this industry we represent with just 01:23:41.570 --> 01:23:44.420 ten prominent tribes in our organization 01:23:44.420 --> 01:23:47.539 a third of all tribal gaming revenue the 01:23:47.539 --> 01:23:49.729 industry is increasingly on the same 01:23:49.729 --> 01:23:51.829 page and getting in that straight line 01:23:51.829 --> 01:23:54.349 to focus its sights on issues of common 01:23:54.349 --> 01:23:57.380 cause I'm gonna go back there the second 01:23:57.380 --> 01:23:59.209 aspect of that that we're doing as an 01:23:59.209 --> 01:24:01.010 industry is we're beginning to gain 01:24:01.010 --> 01:24:03.559 confidence or beginning to gain a sense 01:24:03.559 --> 01:24:07.249 that we can go get stuff done in 2016 01:24:07.249 --> 01:24:09.679 alone this industry saved off three 01:24:09.679 --> 01:24:12.860 critical attacks from Washington one an 01:24:12.860 --> 01:24:14.239 effort to suggest that our industry 01:24:14.239 --> 01:24:15.920 didn't take its anti-money laundering 01:24:15.920 --> 01:24:19.099 compliance efforts seriously a sense 01:24:19.099 --> 01:24:21.709 that this industry was not committed to 01:24:21.709 --> 01:24:24.079 strict regulation and a threat of 01:24:24.079 --> 01:24:26.300 hundreds of millions of dollars in fines 01:24:26.300 --> 01:24:28.760 from the federal government when the 01:24:28.760 --> 01:24:31.099 head of the agency in Washington left 01:24:31.099 --> 01:24:33.110 her role after getting to know this 01:24:33.110 --> 01:24:34.550 industry and getting exposed to the 01:24:34.550 --> 01:24:36.159 people in this industry her message was 01:24:36.159 --> 01:24:38.900 your industry actually has a good story 01:24:38.900 --> 01:24:41.449 to tell our industry the gaming industry 01:24:41.449 --> 01:24:43.909 is that a model for others in financial 01:24:43.909 --> 01:24:46.519 services as to how to do anti-money 01:24:46.519 --> 01:24:49.789 laundering compliance right when the IRS 01:24:49.789 --> 01:24:51.439 said we want to lower slop tax 01:24:51.439 --> 01:24:54.650 thresholds from $1,200 to $600 and we 01:24:54.650 --> 01:24:56.059 want to use all those loyalty marketing 01:24:56.059 --> 01:24:58.130 cards that many of you probably play 01:24:58.130 --> 01:25:01.010 with we want to use those to track what 01:25:01.010 --> 01:25:02.840 people are doing in the casinos that was 01:25:02.840 --> 01:25:05.449 the proposal from the IRS this industry 01:25:05.449 --> 01:25:06.860 stood up it worked in a collaborative 01:25:06.860 --> 01:25:09.309 fashion it prevented that from happening 01:25:09.309 --> 01:25:11.630 also last year when the federal 01:25:11.630 --> 01:25:13.909 government set out to eliminate those 01:25:13.909 --> 01:25:16.290 resort fees that Jeremy mentioned 01:25:16.290 --> 01:25:17.850 resort fees that not everyone likes but 01:25:17.850 --> 01:25:20.310 are worth a half a billion dollars on 01:25:20.310 --> 01:25:23.220 the Las Vegas Strip alone this industry 01:25:23.220 --> 01:25:24.480 worked together to prevent that from 01:25:24.480 --> 01:25:27.510 happening three critical successes there 01:25:27.510 --> 01:25:29.250 were only made possible because of the 01:25:29.250 --> 01:25:31.620 unity of the industry and three critical 01:25:31.620 --> 01:25:33.210 successes that give the industry 01:25:33.210 --> 01:25:36.000 confidence next we can do a lot more we 01:25:36.000 --> 01:25:37.650 can make other great things happen 01:25:37.650 --> 01:25:39.450 the other great thing that make 01:25:39.450 --> 01:25:41.640 positions us for future success is we're 01:25:41.640 --> 01:25:43.830 not putting our head in the sand we see 01:25:43.830 --> 01:25:45.810 what's coming down the pike we see what 01:25:45.810 --> 01:25:48.090 the new issues are that are emerging we 01:25:48.090 --> 01:25:49.410 see the development of daily fantasy 01:25:49.410 --> 01:25:51.450 sports and east boards of skill-based 01:25:51.450 --> 01:25:54.420 games outside Nevada the the development 01:25:54.420 --> 01:25:56.190 of what's called convenience gaming 01:25:56.190 --> 01:25:57.570 retail gaming distributed gaming 01:25:57.570 --> 01:25:58.500 whatever you want to call it 01:25:58.500 --> 01:26:00.810 machines and bars and taverns around the 01:26:00.810 --> 01:26:03.660 country we realize these challenges are 01:26:03.660 --> 01:26:05.280 out there and we're confronting them 01:26:05.280 --> 01:26:05.720 head-on 01:26:05.720 --> 01:26:08.730 we're asking ourselves and for a 240 01:26:08.730 --> 01:26:10.680 billion dollar industry today how do we 01:26:10.680 --> 01:26:12.420 become a 300 billion dollar industry 01:26:12.420 --> 01:26:15.240 tomorrow and how do we work with these 01:26:15.240 --> 01:26:17.070 newfound challenges that are out there 01:26:17.070 --> 01:26:19.560 it's that type of bold thinking and 01:26:19.560 --> 01:26:21.630 leadership that I think sets this 01:26:21.630 --> 01:26:23.880 industry with these other factors sets 01:26:23.880 --> 01:26:26.310 this industry up for tremendous success 01:26:26.310 --> 01:26:29.550 in the future I think we are paid to do 01:26:29.550 --> 01:26:32.430 position to do great things in the years 01:26:32.430 --> 01:26:34.290 ahead and to areas I want to highlight 01:26:34.290 --> 01:26:35.640 for you and you might be picking 01:26:35.640 --> 01:26:37.380 yourself well we have these things in 01:26:37.380 --> 01:26:39.420 Nevada so why does that matter to me I'm 01:26:39.420 --> 01:26:41.040 going to close by coming back why these 01:26:41.040 --> 01:26:42.000 things that are going to happen 01:26:42.000 --> 01:26:43.860 elsewhere in the United States matter 01:26:43.860 --> 01:26:45.870 and matter in a very good way right here 01:26:45.870 --> 01:26:47.940 in Nevada the first tremendous 01:26:47.940 --> 01:26:49.650 opportunity in front of this industry is 01:26:49.650 --> 01:26:52.710 to take what Nevada has today a legal 01:26:52.710 --> 01:26:54.720 regulated sports betting market and 01:26:54.720 --> 01:26:57.390 permit every state in the country to opt 01:26:57.390 --> 01:26:59.280 into this if they so choose you know 01:26:59.280 --> 01:27:00.900 there was a long time where Nevada felt 01:27:00.900 --> 01:27:02.550 hey we've got a monopoly on sports 01:27:02.550 --> 01:27:03.990 betting why would we want to share this 01:27:03.990 --> 01:27:05.640 with anybody else we get all those 01:27:05.640 --> 01:27:07.260 people coming here for the Super Bowl we 01:27:07.260 --> 01:27:08.730 get people coming here for March Madness 01:27:08.730 --> 01:27:10.710 maybe we won't have people coming here 01:27:10.710 --> 01:27:14.030 if sports betting is permitted elsewhere 01:27:14.030 --> 01:27:16.350 well here's the dirty truth there's no 01:27:16.350 --> 01:27:19.920 monopoly here in Nevada last year 4.7 01:27:19.920 --> 01:27:22.140 billion dollars was wagered on the Super 01:27:22.140 --> 01:27:24.540 Bowl three percent of that was wagered 01:27:24.540 --> 01:27:28.380 legally here in Nevada 160 billion 01:27:28.380 --> 01:27:29.380 dollars was 01:27:29.380 --> 01:27:31.510 spent on sports betting across the 01:27:31.510 --> 01:27:33.969 United States 3% of that was done 01:27:33.969 --> 01:27:36.460 illegally here in Nevada Americans are 01:27:36.460 --> 01:27:38.469 finding a way to wager on sports there 01:27:38.469 --> 01:27:41.469 is incredible demand to be involved in 01:27:41.469 --> 01:27:43.449 these games daily fantasy sports which 01:27:43.449 --> 01:27:45.880 got all the attention is the tip of the 01:27:45.880 --> 01:27:47.920 iceberg when it comes to how people want 01:27:47.920 --> 01:27:50.500 to be engaged in games today and the 01:27:50.500 --> 01:27:52.300 question becomes how do we open up these 01:27:52.300 --> 01:27:54.610 other markets around the country to 01:27:54.610 --> 01:27:57.070 enjoy this same product to regulate this 01:27:57.070 --> 01:27:59.020 product to prove that they can regulate 01:27:59.020 --> 01:28:00.909 effectively sports the same way they 01:28:00.909 --> 01:28:03.070 regulate every other form of gaming I 01:28:03.070 --> 01:28:04.929 think we're on the cusp of doing that 01:28:04.929 --> 01:28:07.030 you've got League leaders coming out and 01:28:07.030 --> 01:28:09.070 saying it's time for regulation Adam 01:28:09.070 --> 01:28:10.810 silver of the NBA leading the way and 01:28:10.810 --> 01:28:12.820 others following you've got law 01:28:12.820 --> 01:28:14.469 enforcement increasingly coming to the 01:28:14.469 --> 01:28:16.449 table to say that our resources are best 01:28:16.449 --> 01:28:19.360 spent not trying to track down illegal 01:28:19.360 --> 01:28:21.699 sports bettors but to focus on other 01:28:21.699 --> 01:28:23.889 more serious crimes you've got states 01:28:23.889 --> 01:28:25.719 and municipalities the US Conference of 01:28:25.719 --> 01:28:27.280 Mayors the National Conference of State 01:28:27.280 --> 01:28:29.590 Legislators and many others saying it's 01:28:29.590 --> 01:28:32.409 time to regulate in this area I think 01:28:32.409 --> 01:28:34.210 and I have said publicly in the first 01:28:34.210 --> 01:28:37.030 term of the Trump administration sports 01:28:37.030 --> 01:28:39.070 betting will be legalized or at least 01:28:39.070 --> 01:28:41.020 Washington will get out of the way to 01:28:41.020 --> 01:28:42.580 empower other states they have sports 01:28:42.580 --> 01:28:44.560 betting now a disclaimer when I said 01:28:44.560 --> 01:28:45.760 that I didn't realize this first term 01:28:45.760 --> 01:28:51.670 might be shorter than usual I think we 01:28:51.670 --> 01:28:52.389 will get this done 01:28:52.389 --> 01:28:54.159 I'm confident we will get this done it 01:28:54.159 --> 01:28:56.260 is a multi-billion dollar growth 01:28:56.260 --> 01:28:58.300 opportunity for the industry around the 01:28:58.300 --> 01:29:00.280 country and it's a growth opportunity 01:29:00.280 --> 01:29:02.409 right here in Nevada the other thing we 01:29:02.409 --> 01:29:04.750 have to do as an industry absolutely 01:29:04.750 --> 01:29:06.400 have to do and this is where in many 01:29:06.400 --> 01:29:09.580 senses Nevada is a model we have to 01:29:09.580 --> 01:29:12.670 improve reform the regulation that 01:29:12.670 --> 01:29:14.679 guides this industry in the other 40 01:29:14.679 --> 01:29:16.150 states in which we're doing business you 01:29:16.150 --> 01:29:18.400 know when casino gaming expanded beyond 01:29:18.400 --> 01:29:21.070 Nevada and New Jersey and it went into 01:29:21.070 --> 01:29:22.870 these other states these other states 01:29:22.870 --> 01:29:24.040 thought they were bringing in a great 01:29:24.040 --> 01:29:26.050 evil a great sin and they wanted to do 01:29:26.050 --> 01:29:27.820 everything they could to get the revenue 01:29:27.820 --> 01:29:29.320 from it but paralyzed every other 01:29:29.320 --> 01:29:31.960 activity there with it the speed to 01:29:31.960 --> 01:29:34.000 market of new machines the ability to 01:29:34.000 --> 01:29:35.350 innovate with new products in these 01:29:35.350 --> 01:29:37.389 other markets it's quite difficult the 01:29:37.389 --> 01:29:39.370 ability to reinvest in your product when 01:29:39.370 --> 01:29:41.739 you have 50 60 % tax rates in these 01:29:41.739 --> 01:29:42.880 other states it's quite 01:29:42.880 --> 01:29:45.400 physical our future success as an 01:29:45.400 --> 01:29:48.700 industry demands that we've modernized 01:29:48.700 --> 01:29:50.770 these regulations in every other state 01:29:50.770 --> 01:29:52.900 in which we're doing business now the 01:29:52.900 --> 01:29:54.280 obvious question on all these 01:29:54.280 --> 01:29:56.200 modernizing regulations and sports 01:29:56.200 --> 01:29:59.380 betting why is that good for Nevada two 01:29:59.380 --> 01:30:03.100 reasons one as we've seen the gaming 01:30:03.100 --> 01:30:05.170 industry thrive and other communities 01:30:05.170 --> 01:30:06.300 around this country 01:30:06.300 --> 01:30:08.890 Nevada's success has only increased 01:30:08.890 --> 01:30:11.950 upwards of 50 million visitors now to 01:30:11.950 --> 01:30:14.110 Las Vegas there was a fear when tribal 01:30:14.110 --> 01:30:16.900 gaming came on in California that we see 01:30:16.900 --> 01:30:18.760 a decline in visitation to Las Vegas 01:30:18.760 --> 01:30:20.290 don't think anyone's making that 01:30:20.290 --> 01:30:22.690 argument today as gaming thrives and 01:30:22.690 --> 01:30:25.770 other markets gaming goes mainstream 01:30:25.770 --> 01:30:29.410 Nevada's success only increases it is in 01:30:29.410 --> 01:30:31.900 Nevada's interest to see sports betting 01:30:31.900 --> 01:30:34.090 legalized elsewhere we don't want to be 01:30:34.090 --> 01:30:35.980 the anomaly we don't want to be this 01:30:35.980 --> 01:30:37.450 thing that's okay here but illegal 01:30:37.450 --> 01:30:39.790 everywhere else we want what we do here 01:30:39.790 --> 01:30:42.010 to become and practice a mainstream 01:30:42.010 --> 01:30:43.900 industry the second reason this is 01:30:43.900 --> 01:30:46.960 critical as so long as we have all these 01:30:46.960 --> 01:30:48.460 different policies and antiquated 01:30:48.460 --> 01:30:50.200 approaches to gaming everywhere outside 01:30:50.200 --> 01:30:53.080 Nevada the ability to innovate in Nevada 01:30:53.080 --> 01:30:56.350 remains difficult the cost to do this 01:30:56.350 --> 01:30:59.440 research and development the cost to to 01:30:59.440 --> 01:31:01.540 build these new products and really give 01:31:01.540 --> 01:31:03.280 tomorrow's customer what it is that 01:31:03.280 --> 01:31:05.320 they're looking for is extraordinarily 01:31:05.320 --> 01:31:07.720 difficult with the inefficiencies that 01:31:07.720 --> 01:31:10.120 we have across the country the more we 01:31:10.120 --> 01:31:12.040 can streamline that the more we can get 01:31:12.040 --> 01:31:13.960 a level playing field around the country 01:31:13.960 --> 01:31:16.960 Nevada which is the home to so much of 01:31:16.960 --> 01:31:18.940 this innovation the homes that some of 01:31:18.940 --> 01:31:21.100 the biggest suppliers in this industry 01:31:21.100 --> 01:31:24.010 stands to benefit and that's why what is 01:31:24.010 --> 01:31:26.170 good for gaming outside of Nevada is 01:31:26.170 --> 01:31:28.930 good for Nevada and it's our focus at 01:31:28.930 --> 01:31:31.420 the aga it's our focus every day to 01:31:31.420 --> 01:31:33.700 strengthen this industry I'm confident 01:31:33.700 --> 01:31:35.560 that the future for the gaming industry 01:31:35.560 --> 01:31:37.930 has never been brighter and the future 01:31:37.930 --> 01:31:39.700 right here in Nevada has never been 01:31:39.700 --> 01:31:42.280 brighter the aga is committed every day 01:31:42.280 --> 01:31:44.200 to working on behalf of the gaming 01:31:44.200 --> 01:31:46.480 industry many of you in this room to 01:31:46.480 --> 01:31:48.310 build an environment where the casino 01:31:48.310 --> 01:31:51.520 gaming industry can thrive my ask of 01:31:51.520 --> 01:31:53.620 each of you in this room is to be our 01:31:53.620 --> 01:31:55.300 partner in doing that to help us 01:31:55.300 --> 01:31:56.350 understand 01:31:56.350 --> 01:31:57.820 there are the challenges where are the 01:31:57.820 --> 01:31:59.410 roadblocks where are the issues that 01:31:59.410 --> 01:32:01.300 need to be addressed because the 01:32:01.300 --> 01:32:03.640 industry has never been more capable to 01:32:03.640 --> 01:32:05.320 get in those roadblocks those challenges 01:32:05.320 --> 01:32:07.410 out of the way right now it's about 01:32:07.410 --> 01:32:09.700 capitalizing on the opportunity we have 01:32:09.700 --> 01:32:11.560 building on the success we've enjoyed 01:32:11.560 --> 01:32:13.540 and building the strongest industry that 01:32:13.540 --> 01:32:15.370 we can have in the years ahead I'm 01:32:15.370 --> 01:32:16.480 confident that we're well on our way 01:32:16.480 --> 01:32:18.310 there thank you for the opportunity I 01:32:18.310 --> 01:32:19.750 don't we want to take any questions I 01:32:19.750 --> 01:32:28.780 really appreciate the opportunity yes 01:32:28.780 --> 01:32:31.600 sir excellent we do have time for just a 01:32:31.600 --> 01:32:33.520 couple questions from the audience we've 01:32:33.520 --> 01:32:35.650 got a roving mic out there Jeff is a 01:32:35.650 --> 01:32:37.690 graciously agreed to stay on for a 01:32:37.690 --> 01:32:40.300 couple minutes from the audience that 01:32:40.300 --> 01:32:41.920 was a powerhouse presentation first can 01:32:41.920 --> 01:32:45.150 we give him another round of applause 01:32:47.970 --> 01:32:50.320 if no-one has any questions I see a 01:32:50.320 --> 01:32:51.760 couple faces I recognize including 01:32:51.760 --> 01:32:53.410 Marcus over there a couple others so 01:32:53.410 --> 01:32:56.730 I'll just call on you ask questions 01:32:57.450 --> 01:33:02.610 anybody going going once going twice 01:33:02.610 --> 01:33:05.800 alright thank thank you very much again 01:33:05.800 --> 01:33:10.780 thank you Jeff I'm not closed with this 01:33:10.780 --> 01:33:12.820 I hope you had fun this morning I know I 01:33:12.820 --> 01:33:15.430 did and it is our sincere hope that the 01:33:15.430 --> 01:33:17.350 perspectives you hope that you heard 01:33:17.350 --> 01:33:20.080 today will be of assistance as you make 01:33:20.080 --> 01:33:22.060 your critical decisions throughout the 01:33:22.060 --> 01:33:23.770 upcoming year again thank you for coming 01:33:23.770 --> 01:33:26.820 have a good day 01:33:27.739 --> 01:33:29.800 you