Details of lease agreement between Las Vegas officials, Raiders emerging

More details of a proposed lease agreement between the Las Vegas Stadium Authority and the Oakland Raiders are expected to emerge Thursday when the 11-member board meets.

But the board hasn’t scheduled a vote on a lease at the meeting, the last scheduled board gathering before the Raiders take their relocation request to NFL owners March 26-29 in Phoenix.

Thursday’s meeting at the Clark County Government Center is more likely to be informational with few decisions reached.

Jeremy Aguero, principal for Applied Analysis, the stadium authority’s contracted staff, said Mark Arnold of the Houston-based Andrews Kurth Kenyon law firm, the lead attorney for the authority, will brief the board on the lease negotiations.

Aguero said Arnold has been meeting with the Raiders’ outside counsel, the Philadelphia-based Morgan Lewis law firm, and that about 75 percent of the contract involves issues both sides have agreed upon. The remaining 25 percent of the deal is open to discussion, Aguero said. Many of those issues involve UNLV’s access to and use of the facility, one of the key factors in the Nevada Legislature’s approval of a hotel room tax increase to help finance the stadium.


 


The Las Vegas stadium — a proposed $1.9 billion, 65,000-seat domed facility — would be one of the few NFL venues to regularly schedule college games on its field.

STADIUM MISPERCEPTIONS

Aguero said the board also would receive an update on common misperceptions about the stadium deal, first brought to light in January when the Raiders presented a proposed lease agreement that included paying $1 annual rent.

Since that meeting, Aguero and board Chairman Steve Hill have emphasized that the authority can’t accept fees or payments from a stadium tenant because of the tax-exempt status of the $750 million in bonds Clark County will sell to finance stadium construction.

The confusion over the deal prompted Aguero to issue a memorandum to the the authority board in late January.

“I believe it is worth reiterating that because the (Las Vegas Stadium Authority) will not receive any rental revenue and because the development partners and the stadium events company are solely responsible for all development and operating cost overruns, the rental rate provided in the draft stadium use agreement and highlighted in media accounts is not a meaningful consideration,” Aguero said in the memo.

Aguero also noted that if the stadium is built, the first $100 million of costs, excluding land acquisition, would be paid by the stadium developer — presumably the Raiders. The next payments would be made through the county bonds “except that the last $50 million of project cost is to be paid by the public after the private developer has funded 100 percent of its share of the project costs.”

OTHER BENEFITS

The city’s return on the public’s investment won’t come from rent payments and revenue sharing, according to the board.

 

State officials are banking on increased economic activity, new jobs, increased local wages and increased tax revenue that would not exist without the stadium. They expect room, gaming, sales and entertainment tax revenue to climb once the stadium is operating.

They also note that the stadium eliminates the need to build a new college facility for UNLV and that it will provide a large entertainment venue to house concerts and special events too large for existing Las Vegas facilities.

Legislation authorizes stadium construction to occur as soon as the NFL approves a team in Las Vegas.

The Raiders’ disclosure to NFL owners Monday that Bank of America would provide a $650 million loan toward the stadium’s construction clears the path to a relocation vote, which would trigger finalization of the stadium site and start design for construction.

The Raiders will pay $500 million in stadium construction costs. Bank of America’s involvement in the stadium would fill a $650 million funding hole created when the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson and Goldman Sachs withdrew from the deal in January.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

ad-high_impact_4
Business
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like