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Artist rendering of the proposed UNLV Now project.
Published Tuesday, Nov. 20, 2012 | 10:03 a.m.
Updated Tuesday, Nov. 20, 2012 | 10:29 a.m.
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- Take a closer look at stadium proposals in and around Las Vegas in the Sun's Racing to Build Vegas' next venue report from July 15.
Clark County commissioners unanimously approved an agreement between the county and UNLV regarding some 60 acres of county property that UNLV needs to develop its mega-event center.
Tuesday’s action is another step toward realizing the 60,000-seat domed stadium is built on the UNLV campus.
The UNLV/Clark County deal is contingent upon UNLV gaining approval for its mega-events stadium from the university system board of regents, as well as obtaining funding for the development.
Commissioner Tom Collins said he saw "no harm" in approving the memorandum of understanding with UNLV because it's an initial step. Once UNLV obtains financing and university system approvals, the university will come back to the county as the plans go forward.
Commissioner Lawrence Weekly said he just wanted to make sure UNLV’s neighbors are involved. UNLV’s Don Snyder, who had previously led the effort to build the Smith Center for the Performing Arts, responded that he believed in "being inclusive."
"I'm committed to doing that. This needs to work for everyone. UNLV and the neighborhood around it is important,” said Snyder, dean of UNLV’s Harrah College of Hotel Administration.
The mega-events center, a joint venture of UNLV and Majestic Realty Co., is envisioned at the site of the current UNLV baseball facility, north of Harmon Avenue and east of Swenson Street. The baseball field would be moved south, between Harmon and Tropicana avenues.
The stadium’s cost is estimated around $800 million. UNLV and the developers earlier had said about one-third, or about $270 million, of the cost would come from long-term naming rights and numerous forms of advertising. Another third would come from revenue generated at the site; the last third would come in the form of a sort of tax-incremental financing plan, which would help developers obtain long-term financing.
The Legislature will be asked to approve the tax-incremental financing plan in 2013.
Do our commissioners ever say no to any developer?
Build it but don't expect tax money from me
"This needs to work for everyone. UNLV and the neighborhood around it is important," said Snyder, dean of UNLV's Harrah College of Hotel Administration.
It doesn't work for me if it includes "a sort of tax-incremental financing plan".
And what exactly is "a sort of tax-incremental financing plan?"
Tax-incremented financing (TIF) is a method to use future gains in taxes to subsidize current improvements, which are projected to create the conditions for said gains.
The completion of a public project often results in an increase in the value of surrounding real estate, which generates additional tax revenue. Sales-tax revenue may also increase, and jobs may be added, although these factors and their multipliers usually do not influence the structure of TIF.
When an increase in site value and private investment generates an increase in tax revenues, it is the "tax increment." Tax Increment Financing dedicates tax increments within a certain defined district to finance the debt that is issued to pay for the project. TIF is often designed to channel funding toward improvements in distressed, underdeveloped, or underutilized parts of a jurisdiction where development might otherwise not occur. TIF creates funding for public or private projects by borrowing against the future increase in these property-tax revenues.
In other words, the businesses and homeowners that benefit from the project pay a higher tax after the project after it's finished.
what a joke this is . $800 million !!!! who in there right mind would want to spend $270 million on naming rights . revenues on less than 3,000 people going to a game .that will help pay off the debt . good luck getting financing for this project .no bank will finance project .how in the world is unlv going to do this they are just about flat broke with all the cutbacks on classes and teachers
Chunky says:
"60 acres of county property that UNLV needs to develop its mega-event center."
There's a huge difference between "needs" and wants!
Las Vegas NEEDS to be able to pay it's teachers better!
Las Vegas NEEDS to put more butts in hotel beds!
Las Vegas NEEDS to have the budget to crack down on crime!
Las Vegas NEEDS to do a lot of things and maybe helping UNLV build their "mega-event center" is somewhere on the list but in Chunky's opinion it's way way way down the list from a lot more important things this city needs!
This should be a private sector project and not a penny of the citizens taxes should be used to fund it!
That's what Chunky thinks!
Although I don't think many people care about what "Chunky says" I'll refute.
Las Vegas NEEDS to be able to pay it's teachers better!
IF TEACHERS WERE GROSSLY UNDERPAID THEN THERE WOULDN'T BE MORE APPLICATIONS TO BECOME TEACHERS THAN TEACHER POSITIONS (WHICH IS CURRENTLY THE CASE)
Las Vegas NEEDS to have the budget to crack down on crime!
CHUNKY SHOULD GET A CLUE. HOW DOES THE CREATION OF A TAX FREE ZONE THAT CURRENTLY GENERATES NO REVENUE OR TAXES HURT ANYTHING?
Las Vegas NEEDS to put more butts in hotel beds!
DUHHH CHUNKY...DON'T YOU THINK THE KEEPING THE NFR AND BRINGING COUNTLESS OTHER EVENTS TO THE CITY THROUGH THE EVENT CENTER WILL FILL HOTEL ROOMS???
Yoeleven says Chunky should get study econ 101 and get a clue!!!
The local chapter of CAVE (Citizens Against Virtually Everything) are in session on this one... surprise... if they'd been in charge "back when", we still be awaiting the railroad through town and they'd swear it would ruin everything!
UNLV and Las Vegas NEED a new stadium. UNLV will benefit because schools that have higher profile athletic programs bring in more money for their academic programs, and this facility will kick UNLV football upstairs (even if it's kicking and screaming:)). If UNLV athletics fall away, the entire school will be hurt
Las Vegas will benefit for bringing more and bigger events - we are supposed to be the entertainment capital.
NFR puts something like 100k high money spending, well behaved, fun having butts in beds every year. Building this new barn will hopefully keep them coming every year for a long time to come.
And there's a litany of other stuff that could happen with a facility like this built including NCAA Final Fours, Pro Bowls (dare I suggest even a Superbowl?), Mega Concerts, International soccer matches, political conventions, and on and on. We have all of the infrastructure for these events - except for a large, world-class stadium to house them.
This is a smart move. CAVE should look to other things to direct their ire.
No one disputes this is a great project, however the devil is in the details of how it can be paid for.
What I don't like is the optimistic numbers of stadium naming rights. The average cost and length of all the current naming rights deals is $54.6 million over 19 years. That works out to about $2.9 million a year.
That is way short of the $270m they are projecting. Similarly revenue from events is not profits that can pay off the debt.
All I want a straight answer to is 'if the project runs in to revenue shortfalls or cost over runs, who is on the hook?'.
I don't want to see a situation whereby UNLV is bankrupted by this development and ends up selling it back to the developers to wipe off the debts.
Apparently UNLV seeks to enter the college football "arms race" as 60 minute's latest episode* questions "has college football become a campus commodity?"
"The business model of big-time college athletics is primarily broken. It's, it's a horrible business model" says Michigan athletic director Dave Brandon citing 22 out of 125 college athletic programs were either cash flow neutral or positive -- If you're wondering, in 2011 UNLV had $60,555,156 ($21,758,382 Coaching Staff) in TOTAL EXPENSES and $59,544,869 in TOTAL REVENUES.**
Yet Vegas is unique -- very unique as opposed to many of the "other" college communities which host such colossal "entertainment" centers across the country, in that, Vegas CAN accommodate VERY large crowds for extended periods of time with its massive hotel/gaming/entertainment infrastructure.
The best chance for success resides in the complex's ability to be utilized most days of the year -- would it be capable of accommodating baseball as well as other "events" during the summer? Such a complex must be versatile in accommodating a wide range of sports/events.
Could such a complex be constructed in an efficient manner (solar dome roof) to cover the summer heat's massive cooling costs?
Such a "community" complex in the country's hotel/entertainment/gambling Mecca may have potential if efficiently constructed, properly promoted, managed and utilized -- but what has its feasibility study concluded????
* http://www.cbsnews.com/60-minutes/
** http://usatoday30.usatoday.com/sports/co...
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If I understand this correctly under a TIF plan, the surrounding real estate gets valued higher based on this project (including residential and commercial?) which in turn raises the real estate tax on those properties? and that "excess" is contributed toward the project?
Sounds a little shaky to me.
The TIF plan sounds a lot like counting chickens and eggs before they hatch. But maybe I missed something there. I also think the opinion that having a grand facility like this will improve the UNLV football program might be a bit optimistic (wishful thinking?) as well.
On the other hand, I could see something that was geared to the basketball program, with an eye to providing an even better site for PBR and other large events (think Duck Pond.) A properly conceived facility could possibly be used by pro-basketball as well, but that would need some serious study.
I hope this is a success if it goes through, but I can't say I would wager much on it.
Las Vegas is the only city of its size without a stadium of this size. The benefits outweigh the costs. Do you think most of the other high profile universities in the country are as prestigous because of the their research grant money? Everyone wants to support a winner.
The basketball team already has two top tier facilities. The Mendenhall center is cutting edge and the T&M is outdated for a professional sports team, but still perfect for Rebel basketball.
@JerryWayne,
Las Vegas is unusual in that it has four large arenas and it does have a stadium too (Sam Boyd).
Portland, Oregon doesn't have a venue of that size.
I was at the UNLV/Wyoming game last Saturday. The announced crowd was around 10,000, but I doubt there were more than 5,000 people actually there. Why spend all that money on a 60,000 seat stadium for a football program that averages 2 - 3 wins each year and has a lousy following? Does not make sense.
This is more about Mega Events then football...
If this was about UNLV football, might as well play the games at Gorman, the operating expenses for that arena are much cheaper then Sam Boyd...
This is about things like NFR... This event sell out the T&M at 18500 for roughly 10 days... And the cheapest seat is $50, matter of fact right now that price will get you just the opportunity to find a seat that is not being used... Don't believe me look at UNLVTickets...
Now think about 60000 for those ten days... That is more then NFL teams do in a season... They have roughly 8 home games at about 65000....
After that extra events (PBR which we already have, Final Four, Pro Bowl, Preseason NFL, Concerts, Pac 12 Championship, etc) and UNLV football is just extra revenue...
I have to imagine this thing is more likely to bleed cash rather then fail...
UNLV plays six home football games a year. Obviously, that is not enough to justify building this stadium. However, all of the other events that will be held there bring tourism and generate the revenue needed for this to be a viable project. The NFR, UFC, concerts, College bowl games, possible NFL preseason, soccer, etc... are the reasons to build the stadium. UNLV football is just a beneficiary.
Another reason I do not understand is how people cannot see all of the jobs this stadium and improving the surrounding neighborhood will create. Much of the housing around UNLV needs to be demolished and rebuilt and if this is a means to accomplish some of that, then I'm all for it.
If a tax district is created for the project... so what? At least taxpayers will be receiving something for their tax dollars. Unlike the majority of spending right now that goes to debt and wasteful government spending this stadium will be something tangible for the people of Las Vegas. Some sort of return for the taxpayers, even if you don't enjoy sports other events will be held there as well.
Also, I haven't mentioned the benefit for UNLV. Improvements in the football team mean more money for the UNLV and less of UNLV's budget will go to athletics and more to research and education. That is the ultimate goal. Make more money for the school, and this is a way to help achieve that goal.
So, bringing in bigger events, creating jobs and providing additional revenues and support for the university are reasons why to support this stadium.
@ChickenLittle,
There is no hope that NFL in any form will be allowed in Las Vegas in the next twenty years. You can't even mention Vegas casino's or the Las Vegas brand during NFL games.
Also, just because NFR sells out a 18,500 stadium does not mean it will sell out 60,000. In fact NFR has resisted stadiums for the finals because they want the experience to be closer to the fans. Jerry Jones at Dallas has already offered NFR huge deals, but NFR wants to retain an arena in a easy to reach city.
@derek8017,
No one is disputing the merits of the project. What is in dispute and what isn't being answered is who pays for it if the project can't meet costs. I don't want the county saddled with a $500m debt for the next 20 years.
The revenue projections are very optimistic and providing the numbers that are a positive. If the mob museum, springs preserve and monorail have taught us anything in this city, it is don't believe the projected numbers for revenue.
for those of you hoping an nfl game will be played in this . not happenning. the nfl is on record saying they want nothing to do with vegas. final 4 nope. ncaa doesnt allow ncaa tournament games in states that have gambling .sorry folks
Getting the NFL or even a single March Madness Game is a pipe dream. The NFL is misguided in its understanding of game fixing and the NCAA will never reward the university that allowed Jerry Tarkanian to question its totalitarian rule of college sports.
@Harley, The USA today's numbers were not for 2011, but from 2006-2011. Now, what the US Today's numbers don't take into account is the amount of tax revenue the UNLV financed facilities have generated. If the Thomas and Mack was able to keep just the tax revenue generated from Basketball and the NFR it could fund this new stadium on its own.