A meeting on Thursday delivered mixed results of backers for a Las Vegas Stadium, as certain provisions could be attached to the project.
Plans for a new Oakland Raiders stadium were discussed by the Southern Nevada Tourism Infrastructure Committee, which is still mulling the project. At this point it seems that the group is going to recommend the proposal to Nevada governor Brian Sandoval, but certain contingencies were discussed and viewed by the stadium’s backers as potential problems.
First is a 39% cap on the public contribution for the stadium, which developers object to because they believe the $1.9 billion price tag could drop. With that provision, the $750 million in tax money that has been requested by the Raiders and Las Vegas Sands Corp would be not guaranteed and could fall if the project’s price decreases.
Another provision is related to the stadium’s potential profitability, and was again a cause of concern for developers. More from the Las Vegas Review-Journal:
Southern Nevada Tourism Infrastructure Committee members also said they wanted a provision written into the legislation that would assure the public some return on investment if the stadium is a success. The developers rejected the idea, saying they would have a bigger risk in the deal by pledging to pay for any construction cost overruns.
The developers, represented by executives of Las Vegas Sands Corp., said those two provisions would be deal killers.
The stadium backers are trying to expedite the drafting of proposed legislation so Sandoval can call a special session of the Nevada Legislature to consider the plan. Sandoval has said he would not decide whether to call a special session until he sees the committee’s recommendation.
The committee’s recommendation should be filed by the end of this month, but in the meantime a few points remain in the balance. Along with the Raiders, Las Vegas Sands Corp chairman and CEO Sheldon Adelson has argued that the $750 million contribution–which would paid for through a 0.88% increase in Clark County’s hotel tax–is necessary to move the project forward. Another issue is the timing. The Nevada Legislative Session does not begin until February, and the Raiders would like to seek the NFL’s approval to relocate before then, which is why a special session has been discussed.
The committee will meet again on September 15.