Wednesday, May 12, 2004 | 11:04 a.m.
The group that wants to bring the Montreal Expos baseball team to Las Vegas is asking for the public to finance a significant portion of the estimated $450 million it would cost to build a stadium to house the big-league club.
The request is a serious blow to the plan because the law doesn't allow public financing of such a project without the Legislature's approval, and Gov. Kenny Guinn would have to call a special session fairly quickly to meet Major League Baseball's deadline.
Michael Hillerby, Guinn's chief of staff, said the governor thinks it would be "wonderful" to bring a Major League Baseball team to Nevada, but Hillerby said no one in the governor's office is talking about a special session.
The supporters of the plan to bring baseball to Las Vegas want some sort of public money to pay for a portion of the $450 million to $500 million it would take to build a 40,000-seat, retractable-roof stadium on land behind Bally's and Paris Las Vegas.
Supporters and government officials have said public funding would not include any new taxes. Project supporters have shopped around a proposal to have a government agency sell bonds to pay for a portion of the stadium.
A source close to the deal said about three quarters of the funding for new stadiums in recent years was public money.
If bonds were sold, the government agency would be paid back through a tax or surcharge on ticket, concession and parking sales.
The Legislature would have to allow the sale of bonds for the stadium.
A similar deal went through the Legislature to create the Las Vegas monorail, a $650 million project that is a joint effort of government and private companies.
And the 2003 Legislature authorized Washoe County to boost its car-rental tax to finance a baseball stadium to bring a triple-A baseball team to Sparks.
The group behind the plan to bring baseball to Las Vegas has until Friday to submit its final proposal to Major League Baseball, and the proposal's chances appear dim without an element of public funds.
Baseball officials, who may name two or three finalists as early as next week, have said they want a substantial commitment of public money in the final proposals.
In Washington, D.C., backers of a plan to bring the Expos there have a plan to finance a new stadium with public money.
A source close to the Las Vegas proposal said he didn't think the issue of public funding would be a deal breaker, but he acknowledged it is a major factor in the league's decision. He said Las Vegas could overcome that with private funding. "It's a testament to the value of being in the Las Vegas market that you can attract private money to overcome that," he said. "But I won't kid you. This procedure and our chances are greatly enhanced the more there's public money (involved)."
He said government leaders have given the groups trying to bring baseball to Las Vegas "tremendous support."
The baseball group has been talking to government leaders, trying to drum up support.
Some government leaders were concerned about talk of a special session or public financing, given it's the first election year after the 2003 Legislature went through two contentious special sessions as lawmakers fought over an $833.5 million tax increase.
Clark County Manager Thom Reilly said he met with backers of the new Las Vegas stadium Monday but could not offer them much support.
"It would be a better dialogue to have with the Legislature," Reilly said.
Clark County Finance Director George Stevens agreed. He said a fundamental problem is that the county cannot, by state law, direct local tax revenue to support the construction of a stadium that could cost as much as $500 million.
Stevens and Reilly said the county could use Strip corridor room taxes to support the Las Vegas effort in other ways, such as providing traffic-system improvements.
"We're used to dealing with big projects on the Strip," Reilly said.
The proposed site is just east of the Strip in unincorporated Clark County, which is under the municipal and land-use control of county government.
Senate Majority Leader Bill Raggio, R-Reno, also met with a representative of the group that wants to bring baseball to Las Vegas. "There is no money for a state appropriation," Raggio said. "I don't think it's in the cards at this late date for a special session.
"Obviously we are not going to raise taxes," he said.
Michael Alonso, a Reno attorney who was with the group that met with the governor, said the group has made proposals to the major league relocation committee and a decision is expected around the time of the All-Star Game break in July. He said the group has been told that its bid is "viable."
Alonso said it was "too early to worry about a special session" of the Legislature.
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