Sports arena proposal for Henderson advances

A proposal to build a major sports arena in Henderson has cleared another hurdle.

Texas developer Chris Milam has deposited $1 million in an escrow account that's part of an effort to buy about 480 acres of property from the Bureau of Land Management.

The deposit deadline was Monday. City officials said the money arrived Thursday.

"We just wait now for the BLM land sale," said Christine Guerci-Nyhus, senior assistant city attorney, of the next step in the development process.

In April the BLM announced it would make the land available for a minimum of $10.6 million through a "modified, competitive, sealed-bid sale" that would give Silver State Land LLC, a Milam-controlled company, an opportunity to match the best offer. Bids are scheduled to be opened June 4.

Milam's is one of at least three proposed arena or stadium projects in Southern Nevada.

Another group, UNLV Now, is proposing a 40,000-seat stadium on the University of Nevada, Las Vegas campus that could accommodate the university's football and basketball teams.

A third group, the Las Vegas Arena Foundation, is seeking public support to raise the sales tax on the Strip by 0.9 percentage points to partially pay for an arena on land contributed by Caesars Entertainment that could accommodate NBA and NHL teams and the National Finals Rodeo. It's scheduled for statewide ballot in November.

Milam's Henderson proposal follows several other projects he has pitched in recent years that didn't get built, including a stadium in downtown Las Vegas, another on the Strip and a third near Interstate 15 at Russell Road. The list also includes a $5 billion hotel tower on the Strip that was to be the tallest in the United States.

A spokeswoman for Milam did not return a message seeking comment Monday.

Terms of a proposed deal between Milam's Silver State Arena LLC and CSST Smart Cities International, a Chinese firm, are described in a memorandum of understanding provided to the city.

According to the document, Milam's firm would borrow $650 million at an interest rate of 20 percent with the loan scheduled to mature in 42 months, with Milam obligated to find long-term financing before maturity.

The memo also calls for Henderson to agree to "the sale of public revenue bonds," which the city has yet to do.

"They would have to prove to us there was revenue to support the bonds," Guerci-Nyhus said, a process she said would take months.

Milam has said he would like to begin construction this year.

Milam also told the City Council in April that he "reached an agreement with Penn National Gaming to provide mezzanine finance for a small portion of the financing."

But a spokesman for Penn, which owns the M Resort near the proposed arena site, said the two sides haven't yet agreed to any deals.

"We are in discussions, there is nothing committed or contractual at this point," Penn spokesman Joe Jaffoni said.

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com.