Financing plans changed for Las Vegas stadium

A private developer’s quest for a $90 million, 30-year subsidy from the city of Las Vegas for a $200 million downtown soccer stadium took a new twist Thursday when the city and the development partnership of The Cordish Cos. and Findlay Sports &Entertainment announced a new stadium funding proposal.

The new deal calls for the city to borrow a maximum of $50 million instead of the $115 million proposed in the old deal, with Cordish/Findlay assuming a debt of $65 million as a move to reduce the city’s financial risk.

The new deal was finalized late Thursday afternoon, an hour before a 6 p.m. news conference to announce the revised funding proposal.

“We heard (from residents) that the city had too much risk,” said Justin Findlay, managing partner of Findlay Sports.

Added Cordish Chief Operating Officer Zed Smith: “The considerable risk has been shifted.”

Cordish/Findlay still wants the city to contribute $3 million annually for 30 years. The city plans to earmark the $3 million from hotel room taxes, a move that would require an interlocal agreement. The city receives $6.5 million annually in room tax dollars, which are mostly used for parks and recreation capital projects and improvements under the 2015 fiscal plan.

But instead of the city borrowing $115 million to help pay for the $200 million soccer venue on 61 acres at Symphony Park and receiving annual rent and other payments from the developers, the city will borrow $46 million to $50 million and receive no rent or payments from Cordish/Findlay.

While Mayor Carolyn Goodman and Councilman Ricki Barlow lauded the new deal, Councilman Bob Coffin remained opposed.

“The new terms fall short but are an improvement,” Coffin said. “If they floated all the bonds privately and carry the three plus million cash request, I probably would support it. Is it clear that I still oppose the three million? My ward’s parks are smaller and more in need of funds than others. It is a fight for money, and it will get worse with this deal.

“The stadium would be great for the entire city including my Ward 3, but the basics are neglected, and I will not dilute the scarce resources we have,” Coffin said.

Cordish/Findlay keeps all stadium revenue under the revised deal.

The City Council will vote Wednesday on this nonbinding deal, or “term sheet.” If the council ratifies the nonbinding document, then the city’s seven-member governing board will vote on a final agreement in December.

The type of bonds that the city would issue for its $50 million debt is crucial. If the city issues general obligation bonds, then the final agreement requires a supermajority 5-2 vote to approve. If it’s revenue bonds, then a conventional 4-3 majority vote is all that is needed.

Besides borrowing a maximum of $50 million, the city will also contribute $14 million in infrastructure costs and $22 million from a new Tourism Improvement District, which is projected to generate enough sales tax revenue to cover the $22 million.

Cordish/Findlay wants a soccer stadium to recruit a Major League Soccer expansion franchise to Las Vegas. The city is competing against Sacramento, Calif., and Minneapolis for the final expansion team.

If Las Vegas is not awarded a team, the stadium will not be built.

After the hastily called news conference, city and Cordish/Findlay officials joined Councilwoman Lois Tarkanian to host the sixth and final stadium information meeting at Development Services Center on Rancho Drive. The meeting area was packed.

Tarkanian said she wanted to hear from residents in her ward about the stadium deal.

At a Sept. 3 City Council meeting, the council was split 3-3, with Tarkanian undecided, over the previous stadium deal. Council members Bob Beers and Stavros Anthony said they do not want public dollars used to build a MLS stadium. Coffin opposed the previous deal.

The council’s three stadium advocates are Goodman, Barlow and Steve Ross.

Cordish’s Smith also said his Baltimore company would not build an entertainment district near the soccer stadium.

Cordish is known for rebuilding Baltimore’s Inner Harbor into a popular tourist destination and other entertainment districts in cities including Kansas City and St. Louis.

Findlay Sports would manage the stadium and MLS team if the project happens.

Findlay, whose family owns a car dealership chain in Southern Nevada, said it will take $102 million to pay an expansion fee and start the team.