The latest Las Vegas Stadium Authority Board meeting had a little drama but several key elements relating to the development of the $1.9 Billion facility was discussed.
The long-awaited unveiling of the Raiders Development Agreement was finally presented to the public at Thursday’s Las Vegas Stadium Authority (LVSA) meeting. The development agreement ties everything together and is crucial for the stadium’s construction. While solely for discussion and subject to change, the full document can be found here.
While the document provides a lot to digest, there are some interesting things to point out:
Personal Seat License (PSL) agreement
The Raiders have committed $250 million to the stadium project through the sale of PSLs, regardless if sales come in under that projection. Since that money is required up front, Bank of America will provide payment via a short-term loan. The LVSA will sell the PSLs through a third party. However, the Raiders — not the public — will be responsible for repaying Bank of America’s PSL advance loan.
Issuing of stadium bonds and disbursement
Pursuant to Nevada Senate Bill-1 2016, the LVSA is required to provide $750 million dollars to the stadium project. Before that can happen, the Raiders must spend $100 million on the project, not including the land purchase. At the current pace of construction, the Raiders will surpass that requirement before the LVSA issues the bonds. To bridge that time gap, the LVSA will use funds collected from the hotel tax. This pay-go scenario will keep the project funded and moving forward without delays.
The Raiders are required to have 16,250 parking spots per Clark County code. Clark County conditionally approved the stadium zoning with the parking situation to be addressed by September of this year. That being said, LVSA Board member Tito Tiberti raised issue with the lack of parking, prompting Chairman Steve Hill to remind everyone that all outstanding issues will be resolved by March 1.
To be clear on the issue, the Raiders are only required to have, at minimum, lease agreements with enough land to cover the parking needs on event and game days. Marc Badain addressed the issue afterward, saying they have worked on it for a year now, and will continue to do so, saying Clark County has the final say on parking.
The next LVSA meeting is scheduled March 1, and it is expected that the development agreement will be approved. Once that happens, the document will go before NFL owners for final approval at their meeting March 25-28 in Orlando, Fla. Approval of the Development Agreement is needed to move the stadium construction project into the vertical phase.