Dive Brief:
- The Nevada Senate voted 16-5 Tuesday in favor of a hotel room-tax increase to help fund a near-$2 billion Raiders stadium in Las Vegas, the Las Vegas Review-Journal reported.
- The 0.88% increase in room taxes, effective only in Las Vegas' Clark County, will go toward a public commitment of $750 million, but the measure must still garner a passing vote from the State Assembly. The bill also includes a separate 0.5% room-tax increase for a $400 million contribution to a $1.4 billion Las Vegas Convention Center renovation.
- In addition to the $750 million of taxpayer money, investor Sheldon Adelson of the Las Vegas Sands Corp. has pledged $650 million, and the Raiders have committed $500 million.
Dive Insight:
While proponents look toward job creation and an increase in economic activity around a completed stadium as a boon for Las Vegas and the state, some expressed concern about using public funds to subsidize a wealthy developer, according to the Las Vegas Sun. Nevada Gov. Brian Sandoval has expressed his support for the stadium deal and has remarked in the past that the facility would serve as a necessary, large-scale entertainment venue for Southern Nevada.
The idea for a Raiders' Las Vegas relocation picked up steam earlier this year after NFL owners denied the team a requested move to Los Angeles. The owners meet again this coming January, and NFL Commissioner Roger Goodell said he would not try to prevent the team's move. In the past, however, NFL owners have not been very enthusiastic about allowing a franchise to operate so close to a legalized gambling mecca like Las Vegas.
As for the stadium itself, the team has already released drawings for the MANICA Architecture-designed venue, and developers say that the University of Nevada, Las Vegas football team will also use the facility as its home base. Under the design, construction of the stadium would cost $1.3 billion, and the team estimates an annual $100 million "exposure value" for the city of Las Vegas.
