By DAN KARELL
The private developers trying to bring an MLS expansion team to Las Vegas have made the city one final offer, one that significantly lowers the city’s contribution to the project.
Findlay Sports & Entertainment and The Cordish Companies, in conjunction with Las Vegas mayor Carolyn Goodman, released a revised term sheet on the city’s blog that includes financial details of how to bring MLS to Las Vegas.
After an initial proposal that called for the city to finance a majority of the stadium development, Findlay and the Cordish Cos. have now upped their investment from $49.25 million to $143.5 million of the proposed $200 million stadium. The blog post also notes that the city’s debt in the project per the term sheet is reduced to $25 million from $115 million, and the city’s overall investment in the project has dropped from $129 million to $56.5 million.
The Las Vegas City Council will hold a final vote on this revised term sheet on Dec. 17. It’s unclear whether it will be approved, as City Council told the developers in October that they would only be OK with a stadium if the city subsidies were either eliminated or significantly reduced.
In addition to the stadium costs, the private developers will handle the cost of the MLS expansion fee, though they’ll also have nearly full use of the stadium.
Other notes of the term sheet include the city issuing $50 million in recreational bonds that will be payed back from hotel taxes. $25 million would go towards the stadium, and the rest will be used on capital improvement projects.
A new public parking garage that’s already in planning would be open for use on game nights for the stadium.
The city would provide $31.5 million in infrastructure funding around the stadium site and Symphony Park, where the proposed stadium would go. The money would go towards projects improving the nearby streets, gutters, curbs, drainage, and environmental soil remediation.
The city has pledged to give the private developers revenue from putting a Tax Increment Financing (TIF) district on the stadium site, in a way to offset the costs of property taxes on the site.
Findlay and the Cordish Cos. have pledged $250 million in improvements to Symphony Park, and if development begins within five years, the developers will receive 100 percent of the TIF rebate. Every year after five years that the developers delay, their rebate will go down ten percent.
Another interesting note is that the city hasn’t calculated the price of the land that they’re giving to the developers for this project.
Overall, the city’s revised cost on the project is around 28 percent, the lowest of all the proposals from the developers, though it may not be low enough for City Council.
Even if passed, the stadium won’t be built unless Las Vegas is awarded an MLS franchise. MLS Commissioner Don Garber stated at MLS Cup that the Board of Governors will select another expansion franchise from Minneapolis, Las Vegas, and San Antonio, in the first half of 2015.
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What do you think of this update? Do you see City Council passing the stadium proposal? Do you see MLS coming to Las Vegas?
Share your thoughts below.
I cant seem to find an address for this site. Anyone know where this will be located if it happens?
interesting development and curious to see what the Council decides.
i like the idea of going after cities without 3-4 other pro teams but im unsure about LV.
seems like the city would be better with an NASL team and bigger stadium for USMNT/ncaa football games (see the UNLV stadium proposal)
Sacramento and San Antonio sound like better options.
MLS needs Vegas, by getting Vegas you have the circle complete of, glamour in the MLS.
( given that Miami just needs land for their stadium)
Los Angeles will have 2 teams.
New York has 2 teams.
Miami is coming sooner than later.
Then Vegas, sin city. Imagine the players living on the strip and the tailgating and post game partying would be epic.
Imagine Los Angeles, New York, Vegas, Miami MLS, speechless.
Other huge markets that can be consider special are Seattle, Chicago, Dc, Dallas, Houston, Montreal, Toronto.
Vegas should start with a USLPro or NASL team first and see what kind of support they get. Minneapolis and Sacramento have already proved themselves.
Why do we need more teams?
that’s how the league makes $
its a big country too!
The famous expansion topic, how can we start.
Let’s start by saying that MLS won’t stop at 24 teams and MLS can easily do 28.
So at 24, we are all pretty sure Sacramento and Miami are in, but Miami might be hold back if they don’t have stadium land by next year.
If Miami is not in, then I’m pretty sure Minnesota will come in to take their spot, and Sacramento looks like a sure thing and they won’t need a back up plan in the west conference.
Another scenario is that Los Angeles 2 can also be hold back, due to stadium issues and why rush Los Angeles 2, therefore Vegas can come in to the rescue and give Los Angeles 2 more time, just like in the east with Miami.
The actual question by now should be, who is ahead for team #25 and 26. If Miami and Los Angeles 2 are hold back then, those 2 will be #25 & 26 but if there not, I can easily see Minnesota and Vegas as #25 & 26.
The new term sheet is a bogus document designed to give the appearance of less municipal contribution when in fact it is still a giveaway of tax dollars to the rich and connected.
Because that’s never happened in Vegas before, right?
Really hope Vegas isn’t seriously being considered…
From the picture it looks as if they gonna share stadium with U5 soccer teams.
Hahaha, I looked at the picture again and sure enough both teams are all in one corner of the field.
LOL.
I love stadium porn. Please, someone start a blog, stadiumporn.com.
There’s a 99% chance it already exists and it’s heavier on the porn than the stadiums.
an opposing view
http://www.fieldofschemes.com/2014/12/10/8207/vegas-final-offer-on-mls-stadium-76-5m-plus-free-land-and-tax-breaks-and-well-get-back-to-you/
I’m not sure why this is an opposing view? I will say I don’t really see Las Vegas as a community that will support a pro soccer franchise. Prove me wrong Vegas!
no matter who pays this is still a horrible idea. leave the desert. please.
I’m more concerned about the fact that 20 of 22 players in that rendering seem to be playing
the game in that strange box by the corner flag. Eurosnobs already don’t think much of the quality of the game in MLS and if this is how Vegas intends to play soccer I’m concerned. Don’t think this will make the game more appealing to new viewers.
Sacramento is still in the running as well.
Uh, is Sacramento out? I thought the three that MLS spoke with were Vegas, Minneapolis and Sacramento. San Antonio wasn’t part of the meeting.
http://www.mlssoccer.com/news/article/2014/11/19/mls-confirms-expansion-meetings-las-vegas-minneapolis-sacramento-set-thursda
no, just a standard oversight/brain fart/whatever from DK.