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Question of the Day - 30 October 2019

Q:

Can you please clarify where the $750 million used to build the new Raiders stadium is coming from? People seem to think that Nevada taxpayers are footing the entire sum. It seems to me that I read that the bulk of the money is coming from a $1.50-per-night tax on hotel rooms in southern Nevada. Any truth to this and how much of the $750 million is expected to come from this hotel tax and how much from Nevada residents?

And at the bottom of the answer is your link to the new poll on the possible outcomes of the Wynn returning to free parking. 

A:

Of the total nearly $2 billion cost, $750 million is coming from the public purse, mainly taxes on out-of-towners: namely, an 0.88% increase in the hotel room tax. 

So far, tax collection is running ahead of anticipation, $62 million in its first 14 months. It doesn't hurt that the public part of the stadium funding is being raised through room taxes at a time when Las Vegas is seeing near-record visitation. This is a phenomenon for which stadium backers could have hoped, but never assumed.

Due to the architecture of the financing, the stadium has a long time to pay for itself: The room-tax hike sunsets in 2048 (here's hoping the peripatetic Raiders are still playing there), while the team itself is chipping in $200 million, in the form of a loan from the NFL. In defense of the Raiders, who have been criticized for getting a cushy deal, they put $180 million into land acquisition and site preparation. They’ve also committed $850 million in equity toward construction costs.

On top of the $1.9 billion stadium, $100 million will go to constructing a team headquarters and training facility in Henderson. Additional expenses are also being sunk into offsite parking and a shuttle-transport system. There are also relatively minor costs, such as for on-site personnel, which ought to come out of the Raiders’ pocket. 

The NFL will also have its hand out for a $385 million "location fee," which USA Today calls “the biggest boondoggle” in sports, “free money” for all the other teams. After all, if a team moves to a more valuable market (like Las Vegas), that increased value will come back to the league in the form of revenue sharing.

At least Clark County is getting something for its investment: a National Football League team and all the cachet that entails; a probable Super Bowl in the next five or so years; and a 65,000-seat stadium that's expected to host an event every week or two forever. 

And here's your link to the new poll, which starts today, on the possible impacts that the Wynn's decision to rescind paid parking will have on the casinos that still charge to park.

 

Who's paying the $750 million public share of Allegiant Stadium?
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Comments

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  • [email protected] Oct-30-2019
    Residents are paying
    I hate to break the news that Vegas residents but you are paying, not the tourists staying at the hotels. If the money raised from the hotel tax wasn't going to line the pockets of the millionaires & billionaires who own the teams, that money could be going to the County to pay for things like schools, roads, cops, etc. So when the County will need more funds in the near future to pay for these things, it's Vegas residents who will then pay for it through increased taxes.

  • David Oct-30-2019
    I hate hotel taxes
    Hotel taxes should go away tomorrow. The mere presence of tourists funds how many of the jobs in Las Vegas? Tourists spend a crap ton of money on hotels, dining, shopping, entertainment, and gambling. A boat load of sales tax is collected on all of these activities (except gambling). Profits from all of these economic transactions are taxed. Tourists should not be paying for schools, roads, cops, etc. In San Diego there is an upcoming ballot to make tourists pay for a convention center expansion, housing for the homeless, and road repairs. As a San Diego resident I will vote "no" on this and will strongly encourage others to vote "no". Getting back to Las Vegas ... the stadium should be funded by the people who use it, e.g., NFL contribution, team contribution, a ticket tax, a concessions tax, a parking tax, etc.

  • Carey Rohrig Oct-30-2019
    Again
    Just another of many examples of the taxpayers whether local or tourists getting screwed

  • Kevin Lewis Oct-30-2019
    Tourist taxes are easy
    Why? Because tourists don't get to vote on those taxes, or vote for the people who impose them. One fundamental rule of fairness in taxation is that those who are taxed should be the same as those who derive benefits from those taxes. In this case, tourists--always an easy target and cash cow--are being forced to pay for a stadium and enrich the fat cats. Joe Gambler from Paducah won't benefit from the goddamn stadium. But he's being forced to help pay for it.
    
    Furthermore, the presence of the stadium will make life in Vegas exponentially worse on game days, and no average schmuck will be able to afford a ticket anyway. Vegas residents won't benefit at all. Maybe Uber and Lyft drivers will get a boost. Maybe.
    
    It's all part of a moronic effort to make Vegas a "real" city by bringing in professional sports. Well, that's not what makes a city real, and Vegas will never be a real city no matter what.

  • gaattc2001 Oct-30-2019
    I think they're copying from the MGM Resorts playbook...
    "Sock it to the tourists."
    Everyone knows that tourists have plenty of money and don't mind paying taxes and extra fees--after all, they accepted resort fees and parking fees, and kept coming. Besides, where else can they go to enjoy the unique Las Vegas experience?
    Sooner or later, we'll find out.

  • sassiebrat Oct-30-2019
    Kevin...
    NOBODY is being FORCED to do anything! But, you are right about one thing...LV is no city!