Las Vegas Sun

March 28, 2024

Lowden: Arena bill caters to specific developers, not in “best interest of the community as a whole”

Paul Lowden, who wanted to use the county's redevelopment agency to build an arean on the north end of the Strip, has written Assembly Taxation Committee members protesting two late attempts to allow prospective developers to use taxing districts to build arenas. Lowden seems outraged that the government would write a bill tailored to private developers instead of using current redevelopment agencies -- Clark County essentially has mothballed its RDA.

His letter:

Dear Assembly Member:

With respect to Senate Bills 501 and 502, why would the Nevada Legislature enact laws custom crafted to accommodate specific private developers, allowing them to effectively become their own taxing authorities, when Nevada law already provides a mechanism to assist development deemed to be economically advantageous and in the best interest of the community - RDA's. RDA's don't require any new taxes. If the tax increment from an RDA is not sufficient to induce private development of sports related facilities, Nevada law could be amended to allow for tax abatement, capping the real property tax for such projects, insuring no loss of existing tax revenue for any purpose and no implementation of any new tax to burden tourism or the local population. Under such a structure, both the developer and the community win. Under the proposed bills, the developer hits the lottery at the expense of taxpayers. Taxpayers have already spoken on the issue - NO NEW TAXES, ESPECIALLY NOW!

The proposed legislation is littered with issues, raising unanswered questions as to fairness and legality. It is so specifically crafted to meet the needs of current proposed developers that it can't possibly be in the best interest of the community as a whole.

Under the proposed legislation, who wouldn't want to develop a sports arena, when you can tax everyone else to pay for it. How will local governments fairly choose who is the recipient of such a windfall?

Implementation and accounting for new taxing districts will be burdensome and a waste of resources, while either an RDA with tax increment financing or an RDA with tax abatement capping the property tax are easily manageable. Most importantly, such arrangements are sufficient to induce development of a sports arena and don't utilize existing taxes or implement any new taxes.

Senate Bills 501 and 502 constitute self-serving legislation for specific private developers at the expense of taxpayers. Such legislation, not in the best interest of the public, should not be passed; especially when existing Nevada law, or existing Nevada law with amendment for tax abatement, easily accomplishes the task.

Sincerely,

Paul W. Lowden, President

Sahara Las Vegas Corp.

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