Clark County commissioners are set to vote on creating a tax district that will be responsible for paying for a portion of the hundreds of millions of dollars in public funding going toward the construction of the Athletics 33,000-fan capacity Las Vegas Strip ballpark.
The Sports and Entertainment Improvement District would collect various taxes generated by the A’s ballpark that would go toward repaying the bonds the county will take out to fulfil their commitment to the up to $380 million in public funds going toward the $1.75 billion stadium project. The district would only include the 9 acres where the the stadium will be built, with the remaining 26 acres of the Tropicana site, where Bally’s Corp. plans to build a future integrated resort, not included in the tax district.
Commissioners are expected to vote Tuesday on creation of the district.
The county is responsible for $120 million of public money going toward the project. The county has also pledged to contribute $25 million toward infrastructure costs around the stadium site. The state will contribute $180 million by way of transferable tax credits, all of which was awarded in 2023 via Senate Bill 1.
Once the bonds are paid off, the improvement district would be discontinued and the taxes from the stadium would again flow to the county and state.
The A’s entered into 30-year non-relocation and lease agreements with the Las Vegas Stadium Authority last year, which would also be the length of time that the county bonds will be paid off by the improvement district.
The A’s are seeking to raise up to $550 million from investors to use toward the ballpark’s construction, and investors would receive an equity stake in the Major League Baseball club. MLB has vetted multiple investors that have expressed interest helping fund in the project.
If they A’s are successful in raising the entire $550 million, here’s what the stadium financing would entail:
— At least $550 million from A’s owner John Fisher’s family.
— Up to $550 million in investor contributions.
— $350 million in public funding.
— $300 million construction loan from Goldman Sachs and U.S. Bank.
The Raiders also received public money toward the construction of Allegiant Stadium. The revenue that is paying back the $750 million in bonds taken out by Clark County that went into the construction of the $2 billion stadium is being paid back via a hotel room tax. As of August of last year, the 0.88 percent tax on all hotel rooms in Las Vegas Valley has generated $338 million since being implemented in March 2017.
The A’s should break ground on their Las Vegas ballpark some time in June, according to stadium authority chairman Steve Hill. Plans call for up to 33 months of construction, allowing for the stadium to be completed in time for Opening Day in 2028.
Contact Mick Akers at [email protected] or 702-387-2920. Follow @mickakers on X.
