Headed toward the end zone? Lawmakers resume work on $1.9 billion NFL stadium

By Jackie Valley

Thursday, Oct. 13, 2016 | 2 a.m.

CARSON CITY — Don’t be fooled by the seemingly quiet calm Wednesday at the Nevada Legislature.

Both legislative houses recessed for the day in observance of the Jewish holiday Yom Kippur. The Senate adjourned just minutes before sundown Tuesday, after approving a public financing plan for a $1.9 billion NFL stadium in Las Vegas and expansion of the Las Vegas Convention Center. The Assembly, stuck in limbo waiting for amendments to a police funding bill, finished its business that afternoon.

Despite empty legislative chambers and the special session supposedly on pause, some lawmakers were working behind the scenes to prepare for the work that remains. Here’s a chronological look at what’s expected to happen today when lawmakers reconvene for public hearings:

The Assembly’s first order of business will be to take action on the police funding bill.

The 42-member Assembly plans to reconvene at 8 a.m. today. That’s when lawmakers will revisit Assembly Bill 1, which would let Clark County enact a 0.1 percentage point sales tax rate increase to bolster the number of police officers in Southern Nevada. That additional revenue — estimated to be roughly $39.2 million per year — would go toward hiring 66 officers in the resort corridor and 245 officers for other parts of the county.

It’s enabling legislation, which means it only requires simple-majority approval in both houses — 22 votes in the Assembly and 11 in the Senate. If that happens, then the Clark County Commission could enact it with a two-thirds vote of approval.

The Assembly took no further action on the bill Tuesday because amendments weren’t going to be completed by sundown, the beginning of Yom Kippur. Of the amendments already released, most involve minor tweaks to bill language, such as clarifying that added police protection in the resort corridor is necessary for both tourists and residents who may live, work or hang out there.

Based on lawmakers’ suggestions, another amendment may address calls for service. The 245 officers would be distributed to local police departments based on population, but a forthcoming amendment may direct departments to assign those new officers to areas with more calls for service.

Then it’s the Assembly’s chance to dig into the stadium and convention center expansion bill.

With a 16-5 vote, the Senate gave the green light for public financing for two projects — the renovation and expansion of the Las Vegas Convention Center and construction of a 65,000-seat football stadium that could draw the Oakland Raiders to the desert.

Casino mogul Sheldon Adelson, chairman and CEO of the Las Vegas Sands Corp., proposed the stadium project in January. He has committed $650 million to the estimated $1.9 billion facility. The football team would pitch in another $500 million.

The project, however, hinges on a $750 million public contribution requested by the developer. The legislation calls for a hotel room tax rate increase of 0.88 percentage points in the gaming corridor and 0.5 percentage points in outlying areas of Clark County to pay for the public investment.

The same bill also includes a county hotel room tax rate increase of 0.5 percentage points to fund the estimated $420 million convention center project.

(For those keeping count, that means the county hotel room tax rate would increase by 1.38 percentage points on the Las Vegas Strip if both houses approve the bill. The current hotel room tax in that area is 12 percent.)

The average daily room rate on the Strip in August was $120.95, according to the Las Vegas Convention and Visitors Authority. Visitors would have paid $14.51 in room taxes based on the current rate. If the tax rate increased to fund the convention center expansion and stadium, a visitor would pay $16.18 in room taxes for a hotel room costing $120.95.

This week, Steve Wynn, MGM Resorts CEO Jim Murren and Caesars Entertainment executive Jan Jones Blackhurst testified in favor of the projects. They said the stadium would provide another needed entertainment component to the city’s landscape and draw a whole new segment of visitors.

A long line of public commenters, however, argued against the stadium project, saying it could pose a risk to county taxpayers if tourist volume were to unexpectedly dip. Some also said the tax money could be better used to address issues like education and mental health.

Senators who voted in favor of the bill said the projects were necessary to the future of the Las Vegas Strip, the state’s main economic engine, and would put people back to work. The state's unemployment rate was 6.3 percent in August, the most recent month for which statistics were available. That's the third-highest rate in the nation.

Now, the fate of the bill lies with the Assembly. It requires approval from two-thirds of Assembly members, which means it needs 28 “yes” votes.

Assembly members heard nearly three hours of pro-stadium testimony Monday, but this will be their first chance to ask questions. Discussions will begin today after the Assembly votes on the police funding bill.

The Assembly also can request additional amendments to the bill.

Meanwhile, it’s the Senate’s turn to consider the police funding bill.

The Senate plans to reconvene at 2 p.m. today. After the Assembly approves the police funding bill, which it’s expected to do, the legislation heads to the Senate.

Senators will discuss the bill’s contents and add any amendments they deem necessary. The bill requires approval from 11 Senate members to move forward.

As for when the special session wraps up, that is anyone’s guess at this point. Once both houses of the Legislature finish voting on the bills, they’ll head to Gov. Brian Sandoval for his pen stroke signing them into law.