Raiders’ $75M public funding ask for stadium plaza project approved

The Las Vegas Stadium Authority agreed Wednesday to give the Raiders $75 million in public funds to help pay for a $158 million upgrade to the north entry of Allegiant Stadium.

The approval, which came in a unanimous vote, will grant the money out of a fund set up by Senate Bill 1, the 2016 law that provided $750 million in public funds toward construction of the $2 billion Allegiant Stadium. No member of the public spoke against using the money before the meeting began. Las Vegas Stadium Authority Chairman Steve Hill was the only board member present in person; the remaining members joined virtually and verbally stated their votes for the record.

The Raiders are responsible for paying the remaining $83 million on the project.

“We are grateful to the Las Vegas Stadium Authority for its partnership and collaboration as we continue working together to ensure Allegiant Stadium remains a world-class destination for Las Vegas And the Raider Nation for years to come,” Raiders owner Mark Davis said in a statement.

Light opposition

Two members of the public spoke against the use of public funds for the project, but their comments came after the vote. They said they had trouble finding parking at the Las Vegas Convention Center, where the stadium authority meetings occur, or else they would’ve done so during the pre-meeting comment period.

Richard Krebs, a self-proclaimed 50-year resident questioned why those with the biggest stakes in the team, including Davis and minority owners Michael Meldman and Egon Durban and their collective billions of dollars in wealth couldn’t fund full north plaza project.

“So why are billionaires asking for the taxpayers to shell out more money to subsidize it?” Krebs said. “They can easily afford 100 percent of the costs to improve the stadium.”

North Plaza details

The stadium addition is planned to run along Hacienda Avenue between Dean Martin Drive and Polaris Avenue and include a public plaza, an event space and an area for ride-hailing operations. It would be built over parking lots B and C at the stadium.

Staying competitive

Hill said that, with the NFL set to have five new stadiums come online, keeping Allegiant Stadium state-of-the-art is important going forward.

“We are going to have five brand new stadiums that we need to keep up with,” Hill said. “They are going to be looking to compete for the events that we have been very fortunate to have here. While there is room, for them to do some things and us to do some things, it will provide more options for those events. And there is a limited number of events that make sense to have in the stadium.”

Hill said with the Raiders taking on more of the project’s cost, that it was an appropriate level of cost sharing.

“It’s going to end up being a little less than 50 percent of the total cost of projects, so the Raiders have the majority of the cost sharing in this project whenever we go forward with it,” Hill said. “We will own the enhancement. The Raiders will be responsible for the maintenance of that. And it frankly protects the $750 million public investment that has already been made.”

The project includes a staircase connecting the stadium and Hacienda, allowing more direct pedestrian access to the stadium’s north entrance than the current route from Hacienda to Allegiant Stadium Way. It will aid fans who use ride-hailing operations, which are currently located on a privately owned lot north of Hacienda, as well as the 20,000 fans who usually arrive from the Strip via the Hacienda bridge over Interstate 15.

The project will eventually feature a Boring Co. Vegas Loop station. A future potential addition would include a partly outdoor event space on the corner of Hacienda and Polaris Avenue designed to resemble Allegiant Stadium.

“From the beginning, the Raiders have been focused on delivering an exceptional experience for everyone who visits Allegiant Stadium, and that begins before fans walk through the gates,” Raiders President Sandra Douglass Morgan said in a statement. “These improvements will enhance access to and from the stadium, improve traffic flow and rideshare operations, and ultimately create a better overall experience for our fans and the community.”

The public funds for the project come from the 0.88 percent room tax SB 1 added on Las Vegas hotel rooms to repay bonds taken out by Clark County for the public’s contribution on the project.

Waterfall fund

Excess revenue generated by the room tax is placed in a waterfall residual account after stadium debt obligations are met, stadium authority operating expenses are paid and UNLV is paid for not hitting revenue marks at Allegiant Stadium during home football games.

The waterfall fund can only be used to make improvements to Allegiant Stadium, pay for infrastructure improvements around the stadium and to pay off stadium debt early.

The waterfall fund is separate from a debt reserve account set aside in case the room tax revenue is not enough to make the twice-annual bond payments. The reserve account is considered full at $90.2 million, or enough to cover two full years of bond payments if no room tax revenue was being generated. The reserve fund is more than fully funded and sits at $101 million, according to the stadium authority. The reserve fund had to be tapped twice during the COVID-19 pandemic.

Hill noted that the stadium bonds are not available for additional payments until 2028 using the funds to help pay down the bond debt.

“It’s a reasonable question to ask: “Why don’t we pay off the room tax earlier?’” Hill said. “’Why don’t we use this funding to pay down bonds?’ One, I’ll just point out that the bonds aren’t eligible for refinancing until they already have been issued for 10 years. So that window does not open until 2028. There’s a difference between paying down the outstanding amount and reducing the 7/8 of a percent of room tax. We do not have the option to reduce the 7/8 of a percent of room tax until the bonds are completely paid off, in which case that 7/8 percent will go completely away.”