Nevada lawmakers debated whether tax credits and debts to support a new MLB stadium would benefit Las Vegas’ economy or give a major enterprise a windfall that would strain government resources.
The Republican governor’s chief of staff and the Democratic treasurer both said it would provide tax revenue and well-paying jobs while helping Las Vegas become a sports city in a committee hearing on Monday.
However, lawmakers questioned the value of an A’s stadium in Tropicana Las Vegas. They identified an MLB club with the poorest record, partially sponsored by a county and state struggling to pay public services, including schools, which rank at the bottom in national student-teacher ratios and per-pupil funding.
“Regular citizens see us having a conversation and a discussion around stadium funding,” said state Sen. Dina Neal (D-North Las Vegas). “We don’t have enough revenue to fund and give teachers a 20% (salary) increase.”
Big corporate giveaway or economic boost? A’s stadium funding is debated in Nevada.
Recent statehouse debates over stadium financing for teams in Buffalo, New York, and Arlington, Texas, have been similar. A last-minute law in Nevada’s 2016 special session allowed $750 million of public help for Las Vegas’ Raiders’ Allegiant Stadium. Las Vegas Golden Knights’ T-Mobile Arena debuted that year without public funding.
Like many stadium financing arrangements, public aid would go toward building facilities through county bonds and credits that might flow into state general fund earnings.
The A’s plan would approve up to $380 million in public support for the projected $1.5 billion retractable-roof stadium in a special tax district, principally through $180 million in state transferable tax credits and $120 million in Clark County bonds. $25 million in infrastructure credit from the county. It wouldn’t boost taxes.
A study by Goldman Sachs and the Athletics predicted $900 million in construction salaries and $17 million in tax income from operations. The initiative would boost the state’s general fund.
“This is a good investment,” said Las Vegas Convention and Visitors Authority president Steve Hill, adding that tourists will fill the stadium. If this arrangement goes through, state and municipal funds will increase.
Lawmakers had several worries about the plan that might impact their areas. This addressed how the Athletics’ recent struggles may effect attendance, Strip traffic, airport compatibility, and projection data.
“The Raiders brought a huge fan base to this state. According to Assemblywoman Daniele Monroe-Moreno (D-North Las Vegas), many people traveled to California to witness the Raiders. “I don’t think the A’s will.”
Building trade unions and commerce organizations testified that construction would create local jobs. Many mentioned positive money, more employment, and making Las Vegas the “sports capital of the world.”
The Tropicana Las Vegas casino resort’s southern end would be the stadium’s location. Las Vegas would have the smallest MLB TV market and three major professional sports clubs. The smallest MLB ballpark has 30,000 seats.
After more than a month of uncertainty, the stadium finance bill was unveiled late Friday night. As of Monday night, it had over 2,200 online comments, three-quarters of which are opposed.
The Nevada Legislature’s fate is uncertain with less than a week till session ends on June 5. Democratic officials warned Thursday that Republican Gov. Joe Lombardo may veto numerous Democratic-backed funding legislation, including the A’s, if his legislative goals are not met.