Courtesy of AP
This rendering provided by the Oakland Athletics on May 26, 2023, shows a view of their proposed new ballpark at the Tropicana site in Las Vegas.
Thursday, Oct. 26, 2023 | 2 a.m.
Southern Nevada officials took their first major step in facilitating the construction of a planned $1.5 billion Major League Baseball stadium on the Las Vegas Strip to house the Oakland A’s.
The Las Vegas Stadium Authority on Wednesday voted nearly unanimously to authorize $1 million to retain two law firms to negotiate with the A’s for development and leasing of the new ballpark, as well as assist in the stadium’s construction and operation.
All nine voting members of the 11-person panel voted to approve a $700,000 retainer for the law firm Hunton Andrews Kurth LLP, while one member, vice chair Lawrence Epstein, recused himself from the board’s approval of $300,000 to Brownstein Hyatt Farber Schreck LLP, for a potential conflict of interest involving his son, who he said was expected to join the firm as an associate next year.
The authority also reviewed initial drafts of the community benefits and lease agreements with the A’s as drafted by state lawmakers during June’s special legislative session, when Gov. Joe Lombardo signed into law Senate Bill 1 to allocate $380 million in public funding for the stadium project.
While the board only took action on approving legal costs, Wednesday’s meeting laid the groundwork for the months ahead, in which MLB owners still have to approve the relocation of the A’s from Oakland to Las Vegas, Stadium Authority chairman Steve Hill told reporters afterward.
“We’re just at the starting point,” Hill said. “The legislature has given us the opportunity to make this happen. We’re excited about it. The meeting today wasn’t super exciting, but we wanted to make sure that we get the drafts of these documents out so that everybody involved, including the public, can provide input to the board and as we deliberate over the next number of months.”
A’s President Dave Kaval attended the meeting, but declined to comment. But in a statement sent following the meeting, the team said it is looking forward to “finalizing the stadium planning and other details” after MLB owners potentially vote to approve the franchise’s relocation during meetings Nov. 14-16 in Arlington, Texas.
“Whether it’s supporting community needs or ensuring that we are addressing all questions from policy leaders, we are committed to being a strong community partner and contributor,” the statement read. “We continue to meet and listen to Clark County Commissioners, Stadium Authority Board Members, staff and community leaders, and look forward to finalizing the stadium planning and other details after the mid-November owners’ meeting.”
MLB Commissioner Rob Manfred told the Associated Press on Sept. 27 that owners might vote on the A’s relocation during their upcoming meeting in November. The A’s formally applied for relocation in July, and the relocation application is being considered by an owners’ committee led by Milwaukee Brewers chairman Mark Attanasio, along with Philadelphia Phillies chief executive John Middleton and Kansas City Royals CEO John Sherman.
That committee will evaluate the application, define a new operating and television territory and make a recommendation to Manfred and an eight-team executive council, according to the AP. That council will put forward a recommendation to all 30 clubs needing three-quarters approval.
Also in attendance at the meeting were Alexander Marks and Chris Daly — two representatives from the political action committee Schools Over Stadiums, which was formed by the Nevada State Educators Association shortly after Gov. Joe Lombardo signed SB1 into law.
The PAC is seeking a referendum initiative for the 2024 election that is ultimately seeking to strip the state’s financial commitment to the ballpark project.
“Our goal is to make sure public money goes to central public services like education and this body only exists to oversee publicly-funded stadiums,” Marks told the panel during a public comment period. “That is what our government wastes money on while we are 48th in education with the largest class sizes and highest (teacher) vacancies.”
Among the community benefits agreed to, the A‘s would make a $500,000 annual donation to community initiatives until the completion of the ballpark. The A’s would then donate $2 million annually, or 1% of ticket revenues, whichever is greater.
The benefits package also includes workforce diversity requirements for ballpark construction as well as among subcontractors, vendors and stadium employees, of which 51% of construction workers, 60% of stadium operations personnel and 15% of stadium subcontractors must come from a minority, female, veteran or disabled background.
The A’s would also be required to pay a “living wage” to employees of the stadium project, though the bill does not specify any amounts. The agreement also stipulates the jobs must offer benefits such as health care and paid leave.
The amendments also establish community engagement requirements that mandate participation by A’s players in community and education programs, as well as provisions for the donations of tickets and a ballpark suite for charitable, community or economic development organizations and programs aimed at supporting youth baseball in underserved communities.
Further, the A’s would enter into partnerships with local colleges and universities to provide workforce development programs in the sports industry, as well as provide scholarship and internship programs.
In designing the stadium, vendors will work with the Neon Museum to included elements related to historic neon signs related to Las Vegas, as well as develop an arts plan in “support of the overall ballpark experience.”
To ensure the A’s and the stadium developer are hitting key benchmarks for the project, a seven-member oversight body would be created.
It would consist of two board members of the Clark County Stadium Authority and two people appointed by the Clark County Commission. The governor, Assembly speaker and state Senate majority leader would each appoint one member.
The oversight committee would report at least once a year if the A’s and the stadium developer are in compliance with provisions of the community benefits agreement.
If the team or stadium developer fails to meet the benchmarks, it could initiate legal proceedings or other enforcement mechanisms.
Officials from the joint construction venture Mortenson-McCarthy — who together also constructed Allegiant Stadium and whom the A’s hired in August — told the board that construction for the proposed open-air, 33,000-seat venue will need to begin by April 2025 in order to be completed in time for the start of the 2028 baseball season.
Before a stadium is erected on the 9-acre plot near the intersection of Las Vegas Boulevard and Tropicana Avenue, the building currently sitting at that site, the Tropicana Hotel, will need to be razed. It’s unclear when that specifically will be, as the A’s must wait for their relocation bid to be OK’d first by MLB, Hill said, adding the A’s are required to give the property — which is owned by Gaming and Leisure Properties, Inc. and operated by Bally’s Corp. — at least 12 months notice.
Gaming and Leisure Properties has stated it’s letting the A’s use the land basically free of charge, with plans to build a new resort property next to the stadium on the rest of the 36-acre parcel it owns.
A third-quarter earnings call for Gaming and Leisure Properties is scheduled for Friday.
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