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Published Friday, March 1, 2013 | 9:23 a.m.
Updated Saturday, March 2, 2013 | 3:55 p.m.
Jim Murren
MGM Resorts International wants to build a privately funded, 20,000-seat indoor arena behind the New York-New York and Monte Carlo resorts that would feature boxing, top-draw headliners and special events.
Its partner is the pre-eminent sports and entertainment promoter AEG, whose collection of arenas includes the Staples Center and the Home Depot Center in Southern California, Best Buy Theater in Times Square, New York, and facilities in Shanghai, Beijing, Sydney, Stockholm and elsewhere.
The project, announced Friday morning, is anticipated to be financed with equity contributions from each of the partners as well as privately funded third-party financing, the company said in a statement.
MGM said retail shops, dining, entertainment and other enterprises would accompany the arena, stretching from the Strip to Frank Sinatra Drive behind the resorts.
“This new facility would be an extension of our entertainment legacy and continue our leadership position in the worlds of boxing, sports, concerts and other events that drive significant visitation and revenue to Las Vegas,” MGM Resorts Chairman and CEO Jim Murren said. “AEG’s dominant position in arena development, programming and management makes it an ideal partner for this venture.”
AEG President and CEO Timothy J. Leiweke said his company’s network of venues would “allow us to maximize booking and operations opportunities.”
The partnership with MGM Resorts, he said, “brings together the two largest promoters and operators of live entertainment venues in Las Vegas, guaranteeing the long-term success of the new arena.”
Design and planning is well under way, and the partners will begin seeking appropriate approvals immediately, a company spokesman said.
The MGM-AEG arena plans, the latest entry in the continuing and competing efforts to build a free-standing indoor arena in Las Vegas, will not affect the proposed UNLV Now, the "mega-center" stadium project that would reshape the university campus, said Don Snyder, the project leader.
"The two proposals are pretty much apples and oranges," Snyder said. "UNLV Now is designed for hosting large events that would draw between 25,000 and 60,000 people. There's always been separate conversation about arenas. All along, I’ve felt that an arena project can be done by individual companies and with private money."
MGM Resorts had initially thrown its support behind UNLV Now but has since said the center’s price tag of $800 million to $900 million was too prohibitive, raising doubts about MGM's $20 million pledge for campus project.
Snyder maintains MGM is still supportive of the UNLV Now project. UNLV is now working with various Strip stakeholders to "dial in" the cost of the stadium.
"These types of projects are always difficult," Snyder said. "These are very normal and healthy discussions."
The Las Vegas Convention and Visitors Authority, which usually takes a neutral stance on competitive projects, stayed true to form, not even mentioning MGM in its public comment.
“Our resort partners have invested billions of dollars into providing the facilities and amenities to provide visitors with the best possible experiences,” the organization that markets Las Vegas said in a statement. “Any project that is going to enhance the Las Vegas brand experience and potentially attract more visitors is beneficial to the future of our destination.”
Snyder, who recently stepped down as UNLV's Hotel College dean to focus on the UNLV stadium, said he welcomed AEG's interest in bringing more events in Las Vegas. AEG, which is the world's largest operator of sports teams and stadiums, previously had partnered with Caesars Entertainment on a proposed arena project on the Strip.
Snyder said he wasn't concerned that MGM-AEG's proposed arena would compete for events with UNLV's stadium. The UNLV stadium can host larger events and is a neutral site, meaning it could attract a wider range of events, he said.
"They are complementary projects, not competitors," Snyder said. "AEG is a great company, and is good for our community."
The Los Angeles-based AEG has several connections with Los Angeles real estate billionaire Ed Roski, who is UNLV Now's private developer partner.
Roski co-owns the Los Angeles Lakers and Los Angeles Kings with AEG. Roski and AEG are also partners of the Staples Center in Los Angeles.
Roski's Majestic Realty, which owns the Silverton Casino, has pledged to front 40 percent of the estimated cost of the UNLV Now stadium.
UNLV Now developers are hoping to raise the remainder of the cost from resort industry contributions, naming rights and corporate partnerships, as well as a special tax district awaiting approval from the Legislature.
UNLV is still working with Assembly Speaker Marilyn Kirkpatrick on the legislative proposal, Snyder said. Budget-conscious lawmakers in Carson City are unlikely to approve a tax-increment financing district without a concrete plan from UNLV Now developers regarding how they hope to finance the stadium.
The Smith Center for the Performing Arts, which Snyder helped raise $500 million for, took three legislative session for final approval on a similar tax district. From conception to completion, the Smith Center took 18 years, Snyder said.
Snyder said he remained confident a bill for UNLV Now would reach the floor of the Legislature in the remaining three months of the 2013 session. However, he was adamant he wanted to get the UNLV stadium project right, not to hastily speed it through.
"I'm convinced as ever that this project meets the need for this community," Snyder said. "It is still a game-changer for UNLV.”
MGM Resorts operates the 16,800-seat Grand Garden Arena at MGM Grand and the 12,000-seat Mandalay Bay Events Center at Mandalay Bay on the Strip. The Thomas & Mack Center, which has 18,776 seats when configured for basketball games, is just over two miles from MGM Grand.
Rival Caesars Entertainment, through its Las Vegas Arena Foundation, also has worked to develop a 20,000-seat arena east of the Quad on the Strip. The Caesars project is controversial because the company has attempted to win legislative approval of a 0.9-cent sales tax in a tourism district within a three-mile radius of the site.
unlv your project is now dead in the water . mgm will block your funding or whatever else you needed .with a big money corporation like aeg involved you have no chance .
Good. MGM putting up their money and other private money to give the folks of Vegas and Tourists more enjoyment. That is what their business is all about. This one has the best chance of being built. They own the property and are not asking the public to pony up for a private business. This is how business is done.
This should drive another stake thru the UNLV Now project. If UNLV loses every 20K event to MGM, there's just not going to be enough 20K plus events to make this project viable. Throw in no professional sports coming to Vegas and UNLV now is looking more and more like a white elephant.
The MGM arena project being built right next to i15 will enable them to build entrance to and exit from the arena right to the i15, maybe even a couple flyovers. Much better for traffic than any proposal UNLV has come up with for addressing the traffic issue, unless they do indeed connect the monorail which is currently at a dead end on MGM's Tropicana facing side of the property.
Funny how the MGM folks can do this with little ease. Caesars Ent. trys and fails, at every turn.. They can build a cool looking farris wheel. The party barge mentality of Caesars/ Harrahs is what is, and will hold them back.. Way to go MGM..
Now get back to eating at the worlds largest buffet Mr. lovehandles
I don't give a damn anymore about any project outside the city limits of Las Vegas. I only care about things in the City itself. This is all in Clark County. I think the City of Las Vegas shouldn't have to take the heat of all the violence on the Strip not in their jurisdiction. I think it's time for the City of Las Vegas to form its OWN tourism board. Let the LVCVA keep promoting the area - then the City can take its marketing dollars and gear for tourists once they're here to go to the REAL Las Vegas.
Wow chediski you really have no clue do you? The same Metro police that patrol the city of Las Vegas also patrol the rest of Clark county, including the Strip. So violence and the Strip is the same as violence away from the Strip.
Also, you do realize with the Strip there would really be no City of Las Vegas. Do you really think people would come to this crap town if it wasn't for the once road?
@nisa715 - as I said, let the Clark County Strip businesses continue to promote the area to the world. That can be done without the comparative pittance from the City. The City can then use their money once people are here to get them to frequent the gaming establishments, restaurants, etc., in the City limits for additional City tax dollars not garnered from the County. When I walk up and down the Strip I see Clark County deputies -- I see LVPD officers assisting. There are jurisdictions, just ask them. To say that LVPD cops patrol all of Clark County is not correct. The City of North Las Vegas has their own police. http://www.cityofnorthlasvegas.com/Depar.... Look at a map of the county and you'll see most everything south of Sahara is in unincorporated Clark County. We have a situation where a county sheriff is overseeing a city but I don't see dark uniformed LVPD running around the Strip -- it's the deputies. Anyway, that's beside the point. Now you can dispute this all you want, but a map shows that the properties around MGM are not in the City of Las Vegas.
It used to be when Clark County, unincorporated and the City, were the only places in the country for everyone to come gamble -- hence the homogenizing was good for all. But these days the area is just another division for the major gaming consortiums. Now that the area has a reputation, it's the LVCVA, (again, ironically, not in City limits,) that will continue to pull people here with or without assistance from the actual City. The gambling concerns are not going to stop marketing the region. So the City may as well take their marketing bucks, market with LOCAL companies, to attracts tourists once they are here. According to LVCVA surveys, 95% of visitors know where they'll sleep but only 5% know what to do when they're awake -- hence all the ways for someone to advertise around here. So, yeah, I do have a clue.
Another arena on Tropicana? I looked at the map and Trop & 15 is already insane packed all the way from MGM to the hwy when there is a concert or show there, now they are going to have two arena type venues within blocks of each other. Not smart.
@nisa - I apologize. I just called the LVMPD and they said that they answer to both County and City calls - still not North Las Vegas. The woman I spoke to also was surprised to learn that the City limits stopped north of Sahara - but did affirm that makes no difference. She said the lighter colored uniforms on the Strip are still them. I reaffirm everything else. I know you really don't like the place as a lot of your posts have shown and I hope it gets better for you. Peace.
MGM again out only for themselfs in the Las Vegas Community. They pull out of the much needed UNLV 60,000 seat arena to build there own. Read the reviews by the research company about the arena. Las Vegas is the only city our size not to have one, and adding one would create a tons of added venues to the city.The report stated a large arena would add at a minimum 20 plus additional large events. A 20k arena will not cut it. We need a large capicity arena. The National finals and other venues have already said they are pulling out unless we build an arena. MGM blocks it every time ONLY because they do not want competition. Forget helping the community, they are in it only for themselves. MGM should be ashamed of themselves. They will spin it acting like they are a great company. One final word....PATHETIC....
If UNLV Now is completed, they may get into the Pac-12. If the MGM-AEG stadium is completed, then we may get a NBA and NHL franchise. They are both great for Las Vegas.
This truly is sad and pathetic... corporate GREED at its finest. It is a brutal reality check to residents of our valley that care about the sustainable future of our great city when it becomes glaringly obvious that big corporations (MGM) run everything. It is painful but true that MGM and the corporations that exist in Las Vegas could not care less about UNLV, higher education, attracting high caliber professors and retaining our best and brightest students that will inevitably seek the "college experience" in another city- not Las Vegas. The impact that a project like UNLVnow would have on our city can not be measured by putting a price tag on it. Some things are priceless considering the far reaching benefits and positive impact on our community this would have on all aspects of our city. The facts are there that prove the long term benefit of this project; we can not continue to take a short sighted view on our future. We must also be honest with ourselves and realize that the people that truly care about the ultimate success of this city and its citizens are alone without out any support from our so called friends at MGM and its callous casinos... Thanks for nothing guys...
Great plan for MGM/AMG on creating new place with no parking. People will have to use the Bellaio/Aria/CityCenter/MonteCarlo Tram just to enter into this new arena, only if they expand the tram to NewYorkNewYork/UnnamedArena. But getting a solid UFC exclusive contract for PPV every month at this place would pay for itself in no time at all.
This is a stunningly stupid idea. They will compete against THEMSELVES at the (virtually next-door) arenas at MGM, Mandalay Bay...AND the long established Thomas and Mack Arena right down the road too. They also have NO basketball or hockey "anchor tenant." AND (as mentioned) Caesars is working to develop a 20,000-seat arena on the Strip as well.
And tourism not withstanding, Las Vegas has the worst economy of ANY major city in the country now (outside of Detroit). So...good luck with all that.