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Fate of arena may be up to state legislators — or voters
Group that hopes to build on Harrah’s site tries a new strategy
Friday, Aug. 20, 2010 | 2 a.m.
Bruce Woodbury
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After having failed to win the support of the Clark County Commission, a group seeking to build a $488 million NBA-style arena near the Strip is taking its case to the state Legislature and perhaps the voters.
The Las Vegas Arena Foundation filed documents with the state for permission to collect 97,000 petition signatures to put the project — and a sales tax increase to help pay for it — before lawmakers. If they vote down the plan, it goes on the ballot.
“These are very tough recessionary times, but we can’t freeze in time; we have to be visionary,” said Marybel Batjer, Harrah’s Entertainment vice president of public policy and communications, which would donate 10 acres for the sports hub. “We have to look four to five years out to remain competitive, and without a state-of-the-art arena, Las Vegas is going to lose out to other cities.”
The 674,000-square-foot arena is envisioned behind the Imperial Palace, near Flamingo Road and Las Vegas Boulevard, on Harrah’s land worth an estimated $182 million. The petition says the arena would hold at least 18,000 seats and be “suitable for use by a professional sports team from the National Basketball Association, the National Hockey League, or both.”
The foundation’s request to the secretary of state seeks enough voter signatures to ask the Legislature to consider imposing a Strip corridor sales tax of 0.9 percent. The estimated $40 million to $45 million that would be raised yearly would pay off $300 million in bonds. Additional funding is expected from private sources, said Bruce Woodbury, foundation president and a former county commissioner.
If lawmakers balk, the matter would go on the statewide ballot in November 2012. The sales tax increase would be imposed only in an Arena District within a three-mile radius of the arena and within the current Gaming Enterprise District.
Woodbury said confining the tax district to the Strip corridor means tourists would pay “probably 95 percent of the funding.”
Without some form of public funding, “you cannot build a new arena or stadium of the type that is needed,” he added. “We think this type of funding, where tourists would pay the majority, is appropriate.”
Titled “Building an Arena for a Stronger Future,” Woodbury’s petition request was filed under the name of his ballot advocacy group, the Arena Initiative Committee.
The foundation and three other groups this year began advocating a publicly funded arena. But two weeks ago, arena prospects seemed dead when Silver State Arena, which wanted to build next to the Sahara on the old Wet ’n Wild water park site, withdrew its application from the Clark County zoning board. Silver State Arena developers wanted the county to revive its redevelopment district, providing tax money to pay for 15 percent of the $400 million project.
Further, county commissioners in June repeatedly voiced concerns about public financing of an arena, with additional worries about traffic on the hard-to-navigate Strip. There was so little support for the arena by commissioners that it never came up for a vote.
The road to getting the Harrah’s property arena done, however, will not be a smooth one. MGM Resorts International has opposed public funding of an arena, given that MGM has built its own arenas without public aid.
So even if the petition signatures are collected — they must be submitted by Nov. 2 — MGM’s formidable lobbying group will probably urge lawmakers to reject it. Alan Feldman, MGM senior vice president of public relations, said the corporation’s view has not changed.
“This is a complex conversation and to be having it really absent some form of a good healthy debate about what the community needs and can afford is really unfortunate,” he said.
Beside the arena, voters might be asked to weigh in on Las Vegas Mayor Oscar Goodman’s idea of a baseball stadium in downtown Las Vegas. To build a stadium, it has been reported, would also require some public funding. Would voters support both an arena and a stadium?
Undaunted, Woodbury said his group is ready to hire a professional organization “with a good reputation” to begin collecting signatures in September.
“We have a strong feeling that Las Vegas needs this very badly,” he said. “If we’re going to move to the next level, or get back to our former level, in some respects, we need to keep the National Finals Rodeo and bring in new events with an arena that would compete with anybody out there.”
Sun reporter David McGrath Schwartz in Carson City contributed to this story.
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Build them all! HEll yah, 2 stadiums, why not, we gamble on everything else in this town, why not this.
If Harrah's can buy Planet Hollywood and Thistle Downs and whatever else, let the company pay for the arena. If built, this arena will be on Harrah's land and Harrah's stands to benefit the most. Five percent of $300 million is $15 million ('Woodbury said confining the tax district to the Strip corridor means tourists would pay "probably 95 percent of the funding."'). And if they don't pay 95 percent, we're on the hook for an arena that benefits Harrah's and other investors. As Harrah's leadership will tell you, if it doesn't make economic sense, don't do it.
And when they mention all the jobs to be created, consider how many have been lost by Harrah's earlier acquisitions.
Ask the Harrah's spokeswoman who said "These are very tough recessionary times, but we can't freeze in time; we have to be visionary," if she is still for the arena if it's built someplace else other than on their property...
Behind the IP/Bally's is the WRONG PLACE as is the old Wet 'n' Wild spot. If we absolutely have to build it on the Strip (which, considering the current gridlock and our lack of mass transit, is a silly idea to begin with) then the MGM Resorts-owned property on the southwest corner of Sahara/LV Blvd. would be far better as it has room for multiple entrances/exits and perhaps even a direct-connect with I-15. But hey, that's a practical idea and that's not what we're dealing with here.
How many of these new--and successful--arenas (and adjoining retail/dining districts) in other cities have been built smack dab in the middle of where all the action ALREADY is?
The ones I am familiar with--take Denver to name a shining example--built the complexes in areas that nobody would dare go into at night and now look at the neighborhood. Not only do they have new sports facilities but they've completely renovated an entire area with bars, restaurants. clubs, shops, etc. Are there no places in Las Vegas that fit that run-down/needs-to-be-completely-upgraded description? (that question is so obvious it's gotta be rhetorical).
While it's good to be "visionary" it's not good to hide behind that word if one is really just pushing a self-serving proposal. Deep down, the bickering big boys--Harrah's and MGM AND County/City know we absolutely have to have new arena/stadium facilities but both sides will come up with some reason why we shouldn't if it's the other that appears to benefit.
That isn't visionary--that's selfish.
Harrah's and MGM obviously control the strip, the county commission and the NV Legislature...Where do I go to open up my wallet and pay the keeper of this debacle? Steven Horsford?
Though, I don't oppose something new to gain traction for our tourism based economy...Putting this on the backs of taxpayers is ludicrous!
The only arena project I can support is the Chicken Lady's arena. If the general public understood how public financing works, they would understand redevelopment funds and how that it is not my money nor your money, it is their money which they already paid and get back once construction is completed.
All this talk and no do. Just get the thing started and build it. Jobs are needed. The facility will be a great addition to Las Vegas.
Bruce Woodbury states "we have a strong feeling that Las Vegas needs this very badly." This is the same Woodbury who promoted the Monorail (and is currently on the Board of Directors of that bankrupt enterprise) as something badly needed. More of the same crap from self-serving politicians? Let the taxpayers foot the bills and they can collect their outrageous salaries.
Let those who use the arena pay, and if it costs 500 dollars a ticket, so what. This is just another theft of public money to benefit a select few.
Woodbury said confining the tax district to the Strip corridor means tourists would pay "probably 95 percent of the funding."
Who gets the 95% of the revenue because the way I see it the tourist is the tax payer then the local tax payer should get the profits.
Bottom line that Woodbury is saying is "PRIVATIZE THE PROFITS AND SOCIALIZE THE EXPENSES"
Further more if the tax payer can pay 95% then the tax payer can pay 100% and with that 100% cut everyone out of the deal including these phantom investors and there phantom team with there phantom commitment. And advertise to any team that would like to relocate we are listening for serious inquires only.
The consesus among academic economists is that publicly financed stadiums are a lose-lose situation for municipalities. It creates no jobs on net and generates no additional economic activity. The winners are the milliare players and owners of the teams along with the companies that construct the stadium. Economists also find that sport teams can profit after financing their own stadiums.
Patrick_R_Gibbons
Yes that's how they get to be millionaire's
My spouse and I are retiring in Vegas within the next 2 years and would LOVE a major league baseball OR football team! Sure, we like to gamble too, but sports are our thing.
Dumbest idea ever. If Oscar wants a team so bad, why not have them play in Neonopolis or Spring Preserve?
Mr. Gibbons - What proposal of them all do you seem to think is the best bang for the buck in Las Vegas?
There are 3 proposals out there.
the best proposal is not to build it at all unless its 100% privately financed. then no problem; build the arena AND the stadium and charge the morons who buy the tickets top dollar. let the fans pay for the enjoyment of having a NBA or MLB team in vegas.
Adding additional taxes to what I would already be paying as a tourist to Las Vegas... exactly how will that encourage me to come to your fair city? Charge me more in taxes and fees for something that I'm not going to use or see benefit from! Now that's poor logic. If Harrah's wants a stadium let them finance it themselves. Obviously they want the benefit of the profit but they don't want to pay for it. Like any big corporation, they'll try to soak everyone else for the cost and suck up the profit for their shareholders (or in this case Gary Loveman's wallet).
I don't like taxes, but I do like the NBA. I would gladly visit Las Vegas to see my team play there. Arena's don't get built today without public financing. This plan has tourist dollars flipping a good portion of the bill. How can it really get any better? Despite the economic times such a tax won't influence tourism, and it would create a few jobs when people need them most.