LAS VEGAS —
In a split vote, the Las Vegas City Council today extended an exclusive negotiating agreement with the Cordish Companies to develop a downtown arena.
The four-month extension outlines key business terms that would be used to try to reach a development agreement. If a development agreement is reached and approved by the City Council, plans will move ahead for a $390 million state-of-the-art arena with at least 18,000 seats in Symphony Park. Plans also provide for a live entertainment district with retail and dining offerings.
The cost breakdown proposed in the extension includes:
- Cordish Companies ($151 million, 39 percent of total cost in privately held equity).
- City bonds ($187 million, 48 percent of total cost backed by the city), totaling $390 million.
- Additional financing ($52 million, 13 percent of total cost backed by public-private financing or a Tourism Improvement District)
Under the agreement, the city would repay the bonds from the revenue of the arena and Live! District. Repayment of the city’s debt would be the highest priority under the proposed terms. The projected annual city bond payment is $13.3 million, while the total projected revenues from the arena and Live! District are $25.5 million annually.
The estimated economic impact from the arena development exceeds $400 million, and includes 4,500 new construction jobs. Estimated economic impact from arena operations is $700 million in total output spent annually, 10,300 new jobs and $30 million in new taxes collected annually.
The arena is one of three key elements (academic medicine, performing arts and professional sports) in the decade-long discussion about the city's plans to revitalize the downtown area.— From news release