Last week, Governor Joe Lombardo of Nevada officially signed legislation allowing the Oakland Athletics (A’s) MLB team to relocate to Las Vegas. Following a series of special sessions in the state Senate and Assembly, Senate Bill 1 (SB1) was approved by the Senate with a 13-8 vote, while the Assembly followed suit with a 25-15 vote in favor of the measure.
The new law authorizes up to $380 million in public financial support to assist the A’s in their transition, contingent upon Major League Baseball’s (MLB) approval of the move, which is anticipated to be granted soon. However, there remain many hurdles to overcome before the A’s officially make Las Vegas their home.
Public Sentiment and Financial Details of the Stadium Deal
Despite the promise of new opportunities for the A’s and Las Vegas, public support for the funding deal remains remarkably low, with only 12% of residents approving SB1 and a staggering 87% opposing it. Nevertheless, Governor Lombardo has expressed strong enthusiasm for the project, viewing it as an essential step in establishing Las Vegas as a prominent sports destination.
The funding package includes various financial incentives to support the construction of a $1.5 billion stadium on a portion of the land currently occupied by the Tropicana Hotel and Casino. The A’s are expected to cover the remaining $1.1 billion of the stadium’s cost. The financing structure consists of three main components:
- Tax Credits: Up to $180 million in transferable tax credits will be issued by the state, which the A’s can either use to offset their taxes or sell to other businesses seeking tax reductions.
- Bonds: Clark County will issue $120 million in bonds, which will serve as a loan to the A’s and will be repaid through taxes generated in a newly designated sports and entertainment district surrounding the stadium.
- Development Credit: A $25 million credit from Clark County will be allocated for infrastructure improvements related to the stadium, enhancing access to the site.
Before any public funding is activated, A’s owner John Fisher must contribute $1 billion toward the stadium’s construction.
Anticipated Economic Benefits and Community Commitments
The stadium is expected to not only provide entertainment for baseball enthusiasts but also create significant job opportunities for Nevada residents. The A’s project that approximately 70% of the fans attending games will be locals. The construction phase alone is anticipated to generate around 15,000 jobs, with around 8,000 positions available once the stadium is operational.
A key component of the negotiations leading to the passage of SB1 was the establishment of a community benefits agreement, which includes 13 points aimed at benefiting local residents. Notable commitments include:
- The hiring of a diverse workforce for stadium construction and operation.
- Special appreciation events for various community groups, including Pride and other cultural heritages.
- Investment in local baseball fields to improve recreational facilities.
- An employee relief fund to support workers facing financial hardships.
In addition, the A’s have pledged to donate $500,000 annually to various local causes prior to the stadium’s opening and commit to donating at least 1% of annual ticket sales to community initiatives once the stadium is operational.
While the A’s move to Las Vegas marks a significant shift in the sports landscape of Nevada, ongoing public skepticism will need to be addressed as the project progresses.
Source : https://www.playnevada.com/8416/public-financing-deal-stadium-las-vegas-opposed/
