Las Vegas in line for $750M in tax money to build NFL stadium
Move seen as big milestone in luring Raiders from Oakland
A plan to build an NFL stadium in Las Vegas and lure the Raiders from Oakland crossed a major hurdle Thursday when a Nevada oversight committee voted unanimously to recommend $750 million in public funding for the project.
The Southern Nevada Tourism Infrastructure Committee recommended raising the hotel tax in the Las Vegas area to help pay for a 65,000-seat domed venue that was promoted and would be partially financed by billionaire casino mogul Sheldon Adelson. Proponents still need to win over the governor, the Legislature and three-quarters of NFL owners to make the project a reality, but it's a significant milestone for a city that's never had a professional football team and has been working on the Raiders deal for months.
"We get an NFL team, and that is a significant step forward for Las Vegas and the community," committee chairman Steve Hill said about the project's potential. "Those teams bring the community together. We're going to have people wearing Raiders jerseys and high-fiving each other ... That's not something you can put a number on."
Adelson, Raiders will contribute $1.15 billion
The Adelson family plans to put $650 million toward the project, which would also be home to UNLV Football, while the Raiders plan to kick in $500 million. Sands officials said they don't want to return any profits to the public because they'd be making little or no money on the stadium. They're also committing to fund infrastructure improvements and cost overruns.
Opponents question whether it's appropriate to put public dollars toward a project spearheaded by one of the richest men in the world. They also wonder whether the bonds used to finance the project will put taxpayers at risk in an economic downturn or if tax revenue underperforms.
Stadium proponents drove a hard bargain with the committee, which included business leaders and elected officials. The Las Vegas Sands said they'd walk away from negotiations if the public put in less than $750 million, and the company fought to protect themselves from any future taxes targeting the team.
Hill said the deal's structure would shield taxpayers even in a recession as deep as the most recent one, when hotel tax revenues fell 33 per cent. He also addressed arguments that tax hikes should prioritize Nevada's bottom-ranking public school system.
"I'm not going to argue that a room tax couldn't be used for other things," Hill said, noting that the increase will mostly affect tourists, not locals. "I will say this is an entirely, very appropriate use for room tax."
Public pressure mounted, too. Union supporters wearing Raiders gear held tailgate parties outside each of the committee's meetings, and cheerleaders in silver and black flanked the entrances to the meeting on Thursday. Electronic billboards along the interstate urged people to "hold politicians accountable" on the stadium deal and recommended the hashtag "Don't Screw This Up NV."
It was unclear when Republican Gov. Brian Sandoval might call lawmakers into special session to consider the deal, although proponents want it as soon as possible so they can pitch the deal to NFL owners ahead of their January meeting and potential team relocation vote.