The Southern Nevada Tourism Infrastructure Committee met yesterday to discuss Sheldon Adelson’s proposed $1.4 billion Vegas stadium for the Oakland Raiders as promised, and it … suggested cutting $250 million from the public subsidies? Maybe?
On Thursday, [committee chair Steve] Hill announced a new proposal for funding that reduces the tax money used from $750 million to $500 million and raises the cut for the Las Vegas Sands and Majestic Realty from $650 million to $900 million.
“I’ll tell you point blank we’re disappointed by what we saw today,” said Marc Badian, Raiders president.
Or maybe not?
The panel, along with representatives from the Raiders, developer Majestic Realty Co. and Adelson’s Las Vegas Sands Corp., heard again that the project won’t cost the public more than $750 million.
Thankfully, the committee has uploaded the actual proposal to their website, so we can check it out and try to figure out WTF is going on. The public funding in the “alternative” plan, as you can see, is actually listed as $550 million in stadium bonds, which would be covered by hotel taxes. (In Adelson’s plan, the hotel tax would pay for $750 million worth of bonds.) There would also be $7 million a year for operations and capital improvements, plus $3.5 million a year to repay UNLV for lost events revenue at their current stadium, for a present value of about another $150 million.
Then there is the tax increment financing portion, wherein sales, ticket, and business taxes on the stadium and practice facility would be kicked back to Adelson and Raiders owner Mark Davis, amounting to … it doesn’t actually say how much this would be, but I previously estimated it at around $250 million. So we’re at $950 million in public cost — or $800 million if you don’t include the future operations and other expenses, though you really should — which either way is a whole lot more than $500 million.
In essence what the committee has proposed is to say to Adelson’s crew: Dudes, you’re getting almost a billion dollars, let the tax increment money be part of that instead of asking for it on top. This is enough to make the private partners “disappointed” (they were hoping to have their subsidies and eat them too), but not enough to stop this from being the most expensive public NFL subsidy in history. It would be pretty sweet, though, if the Vegas Raiders deal fell apart because a billionaire and an NFL owner turned up their nose at a mere $950 million subsidy, because they couldn’t be bothered to stoop down and pick it up.