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Thursday, March 10, 2011 | 2 a.m.
Sun coverage
Sun archives
- Proposal emerges to build three-stadium complex in downtown Las Vegas (2-8-2011)
- UNLV athletic department sees on-campus stadium as a game-changer (2-1-11)
- Developers put early plans for UNLV stadium, retail district on display (2-1-11)
- Regents to hear UNLV arena plan for football, basketball (1-31-11)
- Mayor: UNLV domed stadium wouldn’t conflict with a downtown Las Vegas arena (1-27-2011)
- Report: UNLV domed stadium plans will be unveiled Tuesday (1-27-2011)
- Judge to preside over Strip arena petition case (1-27-2011)
- Goodman: Arena project a key issue for next Las Vegas mayor (1-20-2011)
- UNLV acknowledges effort to bring stadium, football to campus (1-19-2011)
- Sandoval says he’d veto Las Vegas Strip arena proposal in current form (1-18-2011)
- MGM Resorts-backed group files suit to block Strip arena (12-15-2010)
- Horsford cool toward arena proposal for Las Vegas Strip; backs online poker bill (12-10-2010)
- Las Vegas Strip arena initiative advances (12-6-2010)
- Mayor: Sports arena ballot petition 'irrelevant' to city arena efforts (11-18-2010)
- Symphony Park targeted for sports arena (11-12-2010)
- Mayor: American League team says no to Las Vegas (8-26-2010)
- Mayor: Without public funding for arena, Las Vegas won't get NBA team (7-22-2010)
- Strip sports arena has very little support (6-10-2010)
- MGM Mirage opposes arena options seeking public financing (5-18-2010)
- County wants arena details, says public money unlikely (4-6-2010)
- Cowboys Stadium poses Texas-sized threat to Vegas (3-21-2010)
Caesars Entertainment is giving up on trying to win legislators’ support for a resort-corridor sales tax to finance its proposed arena on the Strip, and instead will hope for voters’ approval in 2012.
It’s a sign of the anti-tax times in Nevada, when any lawmaker who supports a tax increase can expect political fire.
Backed by construction industry and union allies, Democrats have pushed several proposals this session that would create jobs, from school construction to transportation projects. But Democratic lawmakers, Caesars and the construction trades have no appetite for tackling the 18,000-seat arena in 2011, given that it has pitted two of the state’s most influential casino companies against each other. Instead, Caesars, as well as the AFL-CIO, which sits on the advocacy group’s board, will look to the November 2012 ballot for public support.
“We know the reality of the political times we’re living in,” said Marybel Batjer, a vice president of Caesars Entertainment, speaking on behalf of the nonprofit group advocating for the ballot measure. “Taxes are a very difficult thing for a legislator, in many, many states right now to vote for. We’re going right to a vote of the people. We’re on the ballot in 2012.”
Under the Nevada Constitution, lawmakers have 40 days to act on an initiative petition. Caesars Entertainment said it will take the measure to voters instead of trying to find two-thirds of lawmakers to pass the tax increase.
Caesars, formerly Harrah’s Entertainment, collected 200,000 signatures last year to qualify the proposed sales tax increase for an arena. Under the law, the Legislature has three options:
• Pass the proposal in the first 40 days of the Legislature. That’s a deadline of March 18.
• Reject it or don’t pass it, and the measure would go on the ballot in the next general election.
• Pass a competing question for voters to consider alongside the original initiative petition.
There are several Las Vegas arena proposals, including one envisioned at UNLV and another downtown. Advocates say such a facility is needed to remain competitive as a tourist destination.
No arena has been built in the past decade without taxpayers subsidizing it.
But taxes, which require approval by a two-thirds majority of lawmakers, are never easy to pass, and even more so this year after November’s election sent a batch of conservative lawmakers to Carson City.
MGM Resorts International, the state’s largest private employer, has actively opposed the petition.
Gov. Brian Sandoval said before the session began that he would oppose the petition because it involves a tax increase.
It faces skeptical lawmakers from both parties.
“My questions and concerns are at a time when we’re looking at cutting the budget nearly $3 billion, particularly for education, how is it that we are going to fund a proposal to build an arena? Are those the priorities we need in Nevada?” Senate Majority Leader Steven Horsford said on “To the Point” with Sun reporter Anjeanette Damon.
Still, Democratic lawmakers have been pushing for more money for infrastructure projects to stimulate the suffering construction industry, and some argue an arena would fit the bill. Additionally, Caesars has tried to frame this as a “tax on tourists,” because the 0.9 percent sales tax increase, generating $30 million a year, would be collected on the Strip.
Lawmakers in 2009 passed an initiative petition that raised the room tax in Clark and Washoe counties, reasoning it would largely be out-of-towners paying the bill.
But that initiative, sponsored by the Nevada State Education Association, had two things going for it that Caesars’ arena does not:
For the first two years, the money went to the state’s general fund, which offset taxes or cuts the Legislature would otherwise have had to make that session.
And, Clark and Washoe voters approved an advisory ballot question approving the matter. Lawmakers always appreciate political cover.
Here's one guy who will vote against it if it involves one red cent of public funds. Caesars Entertainment is a multi-billion $ company. If an arena is financially viable, why do they beg for taxpayer $s? No subsidizes for anyone!
At least they are creating jobs for signature gatherers.
For the first time I am with Jerry on this one. If they want the arena, then they can pay for it.
They may get signatures but they will not get it passed when it comes time to vote. Taxpayers have no business paying for an arena in this town.
Why not ask Gary Loveman and his board for the money? He made close to 20 mil for his salary last
year, incentives included. This is a shaft if I every saw one. The rich need to start playing for their toys or start paying the real employees that they get rich off of. Layoffs are coming again for their employees. Not hearing about that are we?
The MGM Executives do not live in the Real World. They don't know and don't care about what is happening to the rest of the State or the Country.
I agree... this proposal has no hope of passage. The public is in no mood for these types of expeditures of public funds, especially now with services at every level being cut.
I get the whole "investment" scheme notion that this will creat revenue and jobs and in fact, I'd be likely to vote "YES"... but the general public will resoundingly defeat.
They must be delirious.
there is no need for it.plenty of concerts and events at mandalay bay and mgm arena.if they want it they can build it. we need to worry social services and school not a stupid arena.
We do not need an arena. If Caesars wants one let them take out a construction loan and build one. When u have Casino executives as Fertita bros getting out of bankruptcy with minimal loss and Fertita still making the Forbes Billionaire club we have something wrong with our justice system. As for construction outlook it runs in cycles and those that can have already moved or try to change their career ( Long haul truck driver , Information systems, health care )Good luck
Count us as "NO!" votes if/when this comes to ballot.
If an arena makes fiscal sense then it will be funded and developed by businesses, just as office buildings, amusement parks, resorts and other things are.
Absolutely not where taxpayer money should be spent.
Personally, I have never cared if they fund a new stadium with a slight increase in taxes or not. The city absolutely needs the stadium to attract and/or retain vital business so if I need to pay a small share to keep the city current I'm fine with that. (I would hope they would remove the tax once the stadium is built which seems not to happen all too often)
However, if we are going to build one then let's put it in the right place. Building it where Caesars wants to--behind Bally's--is ridiculous and 100% self-serving without regard to the outrageous traffic congestion that would result. We've pretty much choked off the Strip as it is--imagine what it would be like after an event. Yet another reason for the locals to avoid the Strip.
The UNLV proposal(s) and the various downtown proposals are all much better than this one but, of course, it wouldn't benefit Caesars as much--just the city as a whole--so those logical ideas won't work for them.
My vote is no. If it is a project that expects a profit, the company that owns it can pay for it. Not me.
With you folks it's a entertainment arena. With us California folks it's a high speed rail system. Both are white elephants and will not return the investment to the voters. If they were such great moneymakers why isn't private industry jumping at the oppertunity to toss their money in the pot? Why can't our leaders understand that when there isn't any money left in the bank, you can't continue spending? If this comes to a vote, kick it to the curb..
When they propose to build an arena that is to be accessible by regular local people at affordable prices and not only to tourists shelling out big bucks to make the casinos richer, then I'll vote in favor of it.
No Public Money for Private Profit Arenas. The Owners of these arenas want the public to take the risk while they take the profit (if there ever is any).
On trains I've yet to be convinced they are not a good thing. How many more highway lanes will it take in 30 years between LA and LV. At 50% of the projected ridership how long is the payback period. At what price per gallon of gas is Rail a no brainer? Remember Jet Fuel will rise accordingly. Could a Power Transmission Line to LA be built with a Mag-Lev system to offset some of the building cost. Lots of questions and only political posturing over the answers.