News

Jan 14, 2024

Nevada Senate Vote on Proposed A’s Stadium in Las Vegas Extended Until Next Week

Anchor/Reporter Thursday was day two of the second special session for lawmakers

Anchor/Reporter

Thursday was day two of the second special session for lawmakers to decide whether the state will provide $380 million in public funding for the proposed $1.5 billion Oakland A's stadium in Las Vegas.

The A's would provide $1.1 billion for the nine-acre, 30,000 seat, partially retractable roof stadium. It would be built where the Tropicana Hotel and Casino Resort currently is on the Las Vegas strip.

On Thursday evening, the leaders of both the Senate and Assembly adjourned until Monday, prolonging the second special longer than expected.

The Senate delayed their hearing by several hours on Wednesday, and have yet to introduce amendments or vote.

The Sssembly was scheduled to convene on Thursday at noon, but did not meet to hear the bill at all.

Other than job creation, legislators' main concern is whether the project generate enough tax revenue to further support the state's essential services?

"Let me get this straight, you've all called us in here for a special session and are asking minimally for the state to give you all $36-million per year for the next five years for a taxpayer-funded stadium at the same time that the Governor has vetoed funding for summer school, a bill to support children's mental health, a bill requiring paid family leave - all because the Governor said we can't afford them," asked (D - Las Vegas) Senator Rochelle Nguyen.

There are three main parts when it comes to the public's funding of the project:

The first is the Sports and Entertainment Improvement District which will pay back general obligation bonds issued by Clark County through taxes generated by payroll, goods, and entertainment, etc.

Second, the state will provide $180-million in transferable tax credits, with $90 million refundable to the state.

Thirdly is the Clark County Development Agreement gives $25 million credit line to the project.

The one-time construction of the stadium and Sports and Entertainment Improvement District is projected to generate $39 million in tax revenue.

Annual operations tax revenue would come in at $17 million per year.

And because Las Vegas is one of the most heavily visited cities with around 40 million people coming in per year, the project is betting big on incremental visitation tax revenue, which they estimate would generate $36.5 million annually.

These tax revenue projections hinge on fans showing up. They are based on an attendance rate of 27,000 attendees per game, which is the average attendance rate for all teams across the MLB.

"Look, I know a lot of people are upset. They think we should wait for an expansion team. So the first thing I always tell people is that's not on the table and a lot of times we can't control what's on our plate, and that's kinda where I am at right now. There are things that are put right here in front of me, and today the discussion is would you like to take this team that wants to move away from Oakland and move to Las Vegas," said (R-Las Vegas) Senator Scott Hammond.

But what happens if revenues come under expectations? For every $1 that is allocated toward principal and interest, 50-cents in revenue would go into a cash reserve that is also backed by a state credit line.

Between the cash reserve and state line of credit, proponents claim the project would have to go four full years with zero revenue before they would have to go to Clark County providing any type of its $25 million credit line.

The Assembly is scheduled to reconvene at noon on Thursday.

Anchor/Reporter

Currently in Reno

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