Las Vegas Sun

March 19, 2024

editorial:

Rising tax tide here also would lift boats in Northern Nevada

Between possibly attracting the Oakland Raiders to Las Vegas, expanding the Las Vegas Convention Center and making major improvements in our public transportation system, Southern Nevada could be on the cusp of an exciting new era.

But as work intensifies to bring those projects to reality, all of a sudden there’s grumbling up north over using tax dollars to fund them.

That grumbling needs to stop. Now.

It’s time for Nevada’s leaders — north and south — to work together to do what’s best for Las Vegas, because what happens here benefits the entire state.

The concerns emerging from up north involve room tax revenue that would be used for the stadium. A portion of that funding goes to public education, including school systems outside of the Clark County School District, so those who are questioning the stadium project are essentially saying it would siphon money away from northern schools.

We’ll grant this much: The amount of public funding contained in the current stadium proposal is way too much, at $750 million. On that point, lawmakers who are questioning the project are absolutely right.

In fact, the developers of the $1.9 billion stadium project did no one any favors last week by drawing a line in the sand on the public-funding issue, saying there would be no deal unless they got their $750 million in tax revenue.

If they’re serious about this, apparently it’s time to move on and forget the stadium, as much as we believe it’s a good project. The private parties are too reluctant to step up and are looking for too much public money.

While hoping the developers will come to their senses and back off of their demand, though, here’s a final thought: If the private parties looking for public support would be willing to commit to contributing $50 million a year from stadium revenue to the state’s public education fund, that might justify the higher price tag over the next few years, provided the other two essential projects are funded too.

If the stadium plan moves forward, lawmakers throughout Nevada should remember that the Strip is the economic driver for the entire state, and that bringing NFL crowds to Las Vegas 10 times a season (eight regular-season games, two preseason games) would be an economic boon that would generate additional sales taxes and room tax revenue. Combined with the convention center expansion and a light-rail system that would relieve our overcrowded transportation grid, it also would spur additional business development that would add more tax revenue to state coffers.

But even without the stadium, the remaining projects are still must-haves that leaders across the state should embrace.

The projects aren’t cheap — $1.4 billion for the convention center expansion and an estimated $400 million for the first phase of a light-rail system serving the Strip — but they’re lucrative investments. We’d be fools not to make them.

Both would help us compete with cities like Orlando, Fla., which is aggressively competing with Las Vegas for convention traffic and is going full speed ahead in expanding a light-rail system that allows visitors and convention-goers to get around the city easily and cheaply.

Meanwhile, Las Vegas visitors face long taxi lines at the airport, crowded roads on their way to hotels and high taxi fares or ride-share costs. If you don’t think we need to take progressive steps in transportation, just go to Las Vegas Boulevard between Tropicana and Harmon avenues the next time there’s a major event at T-Mobile or MGM Grand Garden arenas.

As for the convention center, it hasn’t been upgraded or expanded in years. When the head of the organization that puts on the massive CES electronics show says the expansion is needed, as he did during a recent interview with VEGAS INC, you listen. Losing a show like CES would be a terrible blow.

So here’s the bottom line: This is no time for state leaders to get out of step.

The improvements for Southern Nevada would benefit the state from border to border, and it’s entirely appropriate to use room tax money to help fund them. The reason: The public would benefit greatly from the projects.

Failing to make progress isn’t an option as cities such as Orlando, Phoenix and Denver forge ahead on improvements that threaten to siphon tourism and convention traffic from Las Vegas.

It’s imperative for lawmakers and government leaders to take a big-picture look at what’s going on in Southern Nevada.

Parochialism has no place in the dialogue because the future of Las Vegas — and therefore, the entire state — is at stake.

The city is on the move, as evidenced by projects such as T-Mobile Arena and MGM Resorts’ fantastic Park development, as well as the NHL’s recent decision to award Las Vegas a franchise.

And now, there’s a chance to pick up more momentum and launch the city into an even higher orbit.

But to get there, the tired old north-south squabbling has got to stop.

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