Developers float new financing plan for proposed soccer stadium

By Conor Shine

Wednesday, Sept. 24, 2014 | 11:51 a.m.

Developers behind a proposed $200 million downtown soccer stadium have floated a new financing plan that would cut the risk to the public in an attempt to boost the sagging project’s chances for approval.

The new plan, which will be presented to Las Vegas City Council members Tuesday, would reduce the amount of bonds the city would issue for the project from $115 million to a maximum of $50 million, Councilman Bob Beers said.

The remainder would be paid for by the developer partnership of Findlay Sports and Entertainment and Baltimore-based Cordish Cos. The partnership would also own the soccer team that would play at the stadium.

Under previous proposed terms, the $115 million in bonds issued by the city would be paid down using a $3 million annual room tax collection from the city, $3.5 million in annual rent from the soccer team and $500,000 to $1.5 million in revenue from other events at the stadium.

Several city council members raised concerns that if the soccer team underperforms and doesn’t generate enough money for its rent payment, the city would be on the hook for paying off the full bond payment out of its operating fund.

Under the new terms, the city would use its $3 million room tax contribution to pay down the $50 million in bonds it issues.

The developers wouldn’t pay rent to the city but would be responsible for paying off its own loans with revenues from the soccer team.

If the team underperforms and doesn’t generate enough money, it would be the developer’s responsibility to make up the difference.

Concerns about the public’s share of the financing led to a stalemate at a Sept. 3 City Council meeting when the proposal was scheduled for a vote, with three council members in support and three in opposition.

Swing vote Lois Tarkanian said she was uncomfortable with the amount of public financing in the proposal, and a one-month delay was approved. The council is scheduled to vote on the stadium on Oct. 1.

If approved, developers would have until December to finalize the terms and a lease that would require final action by the council.

The plan presented earlier this month also called for a $14 million infrastructure contribution from the city, $44 million paid by the developers and another $20 million redirected sales tax revenues. Those items remain unchanged in the new financing terms.