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June 03, 2011
Nevada stadium hearing: Three projects enter, only one will leave
The Nevada legislature heard from three developers who want to build stadiums in Las Vegas — Majestic, Cordish, and Chris Milam — as part of a hearing yesterday on the bill to provide TIF kickbacks to whichever sports construction project can actually win approval. Though not exactly "whichever": The bill would only provide state funding for projects with 35,000 seats or more, which rules out Caesars Entertainment's plan for a 27,000-seat NBA arena.
From the sound of things, the hearing was mostly an occasion for the three developers to make their pitches, and we've heard about those already. Quote of the day, meanwhile, comes from bill sponsor (and Senate majority leader) Steven Horsford, via the Las Vegas Sun:
Horsford acknowledged that he wrote the original bill after asking each project team what they would need to make their financing pencil out. But he said lawmakers would ensure the legislation is written fairly.
"Sometimes things get rushed through at the last minute and consequences get determined later and people need to fix it," he said. "I completely agree we need to be deliberative about this process."
Which is why he let the developers write the bill and then immediately introduced it without any fiscal notes on what it would cost, doncha know.
I know David Stern doesn't control EVERYTHING in the NBA, but that being said, he has indicated that the NBA might be interested in putting a team in Vegas.
Do you think this might do it? Which team do you think would go?
It's interesting that the mechanism described so far for at least one of the Vegas projects isn't exactly a TIF; it's a tax increase in an area to repay the bonds. I wonder if the developer might even be willing to fund shortfalls. Okay, you can stop laughing now.
Still, in theory, this is better than the type of TIF where they redirect funds raised at the same rate as surrounding areas. To me, if enough entities within the proposed taxation district approve a tax hike, have at it. It's the tax hikes with no public vote that bother me.
Posted by MikeM on June 3, 2011 04:47 PM
Now we have a "companion" bill, SB502.
www.rgj.com/article/20110603/NEWS/110603020/Nevada-Senate-hear-bill-would-allow-surcharges-Aces-games?odyssey=mod|newswell|text|Local%20News|s
Might help them land the Olympics. Man, as soon as you put it that way, politicians fall all over themselves to get it done.
Posted by MikeM on June 3, 2011 04:51 PM