State, county officials question demands laid in Raiders’ proposed lease

Several state and county lawmakers Friday questioned demands laid out by the Oakland Raiders in a proposed lease for a planned 65,000-seat stadium in Las Vegas.

Two Clark County commissioners said they were surprised by a proposal for the Raiders to pay $1 a year in rent to use the stadium. And some state legislators joined the executive director of the Las Vegas Bowl in questioning the Raiders’ proposals to control scheduling and field markings at the stadium.

However, Steve Hill, chairman of the Las Vegas Stadium Authority, said the public shouldn’t overreact to the terms of the proposed lease the Raiders delivered to the authority on Thursday. He said the proposal represents a starting point and authority board members would dissect the contract paragraph by paragraph in future meetings.

The proposed agreement addresses every aspect of the team’s use of the stadium, from the sale of concessions and merchandise to parking and the placement of automatic teller machines. The document also addresses stadium naming rights, advertising and broadcast rights and the proposed $1-a-year lease cost.

On Friday, Commission Chairman Steve Sisolak said he learned about the $1 rent proposal by reading the newspaper. He said he’s waiting to see if the Raiders will increase their contribution for the stadium’s construction.

“I don’t know if that’s a starting point or where they’ll end up. One dollar is basically no rent,” Sisolak said. “Somehow this is going to have to work that (the stadium) pays its expenses — operating and overhead — and I don’t know if rent at $1 is sufficient. I tend to think that it might not be.”

Chris Giunchigliani was more blunt, calling the proposed rent amount shameful.

“I’m shocked. How arrogant is that?” she asked. “They’re a for-profit company. They should be better partners if they’re coming here.”

STADIUM REVENUE

However, Hill said there’s a misconception that the stadium authority would receive revenue from the operation of the stadium.

“If the stadium authority did get revenue, it would almost certainly cause the bonds to lose their tax-exempt status, which obviously would create a major problem and a major hole in the financing package,” Hill said. “We can’t even take the dollar,” he said, referencing the $1-a-year lease.

The Raiders’ domed stadium would be owned by the stadium authority, because Clark County hotel room tax revenues would cover $750 million in bonds toward $1.9 billion in construction costs. The Raiders would cover $500 million, and the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson would contribute $650 million.

The proposed lease agreement makes no mention of the Adelsons or any other potential private development partner. Earlier this month, the Raiders told the NFL that Goldman Sachs is committed to financing the stadium with or without an investment from the Adelsons.

Hill said the proposed lease is an alternative that assumes the team would be the sole non-public investor funding the stadium. He also said that negotiations are continuing with the Adelson family to partner on the project.

“It’s important to note that the proposal the Raiders gave us assumes that they would be the sole investor in the stadium,” Hill said. “The way we originally assumed it would happen is that the Raiders and the Adelson family would directly invest and there would be an agreement between the team and the family.”

Mari St. Martin, spokeswoman for Gov. Brian Sandoval, also said the lease “assumes that the Raiders will serve as the stadium operator and contemplates all risks associated with that designation. This proposal does not consider an additional third party. … In this proposal, the Raiders would invest $1.15 billion in the stadium and accept all responsibilities and risk.”

“Any lease proposal will require a thorough vetting by the Stadium Authority board and detailed discussions with the Raiders franchise to ensure the lease accurately reflects and protects the state’s investment in this public stadium,” she said in a statement.

SCHEDULING RESTRICTIONS

Meanwhile, Sen. Kelvin Atkinson, D-Las Vegas, said he thinks the proposed restrictions on scheduling and field markings for UNLV games could be a sticking point for some lawmakers.

“Some of the lawmakers agreed to this deal with the understanding that UNLV would play their home games there, and the field would be UNLV,” Atkinson said. “UNLV being able to have their name, their logo, their colors — I think that means a lot to a lot of the lawmakers.”

But Atkinson added that he doesn’t think those restrictions will truly impact the relationship between the Raiders and Rebels because the two teams rarely play on the same day. So those field markings, he said, should be able to be repainted in between UNLV and Raider games.

Assemblywoman Irene Bustamante Adams, D-Las Vegas, also said the potential restricting of UNLV’s field usage would bring up “some yellow flags” for her.

And Assemblyman Nelson Araujo, D-Las Vegas, said he thinks lawmakers should continue to keep an eye on the stadium authority to ensure that UNLV is protected during the lease negotiations.

UNLV athletic director Tina Kunzer-Murphy would not comment Friday on the specifics of the Raiders’ proposals.

Las Vegas Bowl executive director John Saccenti said the Raiders’ proposals to control scheduling and field markings for the proposed new stadium caught him by surprise, but said he was willing to take a wait-and-see approach.

“The good thing is I’ve met with the Raiders a couple of times now, and so I get the sense that we’d have a good working relationship and there’s really nothing to worry about,” Saccenti said Friday.

But he still wanted to learn more details on the Raiders’ asking for the rights to approve any college football game in the new stadium and for any markings from such events to be completely removed before the NFL team takes the field.

That is, if they take the field in Las Vegas. Though the Raiders have applied to the NFL to relocate to Southern Nevada, at least 24 of the 32 owners must approve the move. A vote is expected in late March at the NFL Annual Meeting in Phoenix.

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

Staff writers Michael Scott Davidson, Colton Lochhead and Sandra Chereb contributed to this report.

Contact Mark Anderson at manderson@reviewjournal.com or 702-387-2914. Follow @markanderson65 on Twitter.

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

ad-high_impact_4
Business
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
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)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like