Nevada Senate rejects initiative on Strip arena

By David McGrath Schwartz

Published Thursday, March 17, 2011 | 11:04 a.m.

Updated Thursday, March 17, 2011 | 1:05 p.m.

The Senate unanimously rejected a Strip arena petition this afternoon, under a resolution that argued it was a local issue and noted that the taxes raised couldn’t be used for “essential services” from government.

Senate Majority Leader Steven Horsford, D-North Las Vegas, said rejecting the provision “maintains legislative authority to bring forward an alternative.” He would not say what the alternative to Caesars Entertainment might be.

He said the legislature is focused on "jobs now." A stadium project, whether that of Caesars or one of the competing proposals, wouldn’t create jobs for a number of years.

Initiative Petition 1, which would have raised the sales tax on the Strip by 0.9 percent to finance an arena, had to be ignored, rejected or passed by the Legislature by Friday, the 40th day of the 2011 Legislative session.

Caesars Entertainment, formerly Harrah's Entertainment, collected 200,000 signatures for the arena proposal.

Lobbyists for other gaming companies, primarily Boyd Gaming and MGM Resorts, have been working on an alternative to boost the chances that the Caesars ballot measure could be defeated. Lobbyists believe that lawmakers have to reject the proposal within the 40 days in order for lawmakers to offer an alternative.

Caesars Entertainment had already given up hopes of having the Legislature pass the initiative.