By Tabitha Mueller and Howard Stutz
The Oakland A’s and major state officials have reached a loose agreement for a public financing package of at least $325 million, significantly less than the $500 million the team originally sought to assist in relocating the franchise to a $1.5 billion stadium in Las Vegas, sources confirmed to The Nevada Independent on Tuesday.
However, the agreement was only presented to Democratic lawmakers Tuesday morning and is expected to formally arrive in the next few days. The public financing package has to be approved by the Legislature before it adjourns on June 5, or else could end up being vetted in a special legislative session.
As the deal stands now, sources with knowledge of the discussions indicated the state will contribute $180 million in transferable tax credits, of which 50 percent would be refundable — meaning the franchise or another entity that purchases the credits from the team can trade any excess credits for cash from the state.
Clark County would issue $120 million in bonds (an amount that could change depending on interest rates), a 30-year property tax exemption and a $25 million credit allocated toward infrastructure costs associated with the development agreement.
A source close to the negotiations estimated that the 30-year property tax exemption could be equivalent to almost $55 million over that time period, potentially bringing the total public financing package up to $380 million.
The Nevada Independent granted anonymity to the sources so they could speak freely about the status of negotiations for the proposed 30,000-seat retractable-roof stadium that A’s hope to open in time for the 2027 season.
The agreement was reached after weeks of discussion involving representatives from the Major League Baseball team, the governor’s office, the treasurer, representatives of lawmakers and Clark County, among other groups, and marks a sizable step forward after weeks of concerns from lawmakers and the county over the scope of the team’s public financing request.
Sources indicated last week that lawmakers were only willing to contribute up to $195 million in transferable tax credits for stadium construction funding, and a dollar amount had not yet been agreed upon by Clark County. On Friday, Clark County officials said they were concerned taxpayers could end up on the hook to cover debt payments if the stadium wasn’t generating enough revenue.
The A’s initially said they were seeking $500 million in public funding to assist with stadium construction, but in the weeks since, the team announced they were changing the proposed site and reducing the public dollar request to $395 million.
Approval by the Legislature is one sign-off needed by the A’s before construction could start on the ballpark. Major League Baseball’s relocation committee would also need to approve the project by Jan. 1.
The proposed stadium’s proximity to Harry Reid International Airport means the team will also require approval from the Federal Aviation Administration before beginning construction.
“By law, developers must give the FAA the opportunity to evaluate proposed structures near airports to determine whether they could pose a hazard to aircraft or interfere with navigation aids,” a spokeswoman for the FAA said in an email to the Independent. “Each determination is unique. Our determinations identify hazards to air navigation.”
The A’s announced on April 20 it was acquiring 49 acres from Red Rock Resorts for a stadium and entertainment district at Tropicana Boulevard and Dean Martin Road.
On May 15, Tropicana operator Bally’s Corp. and real estate investment trust Gaming and Leisure Properties (GLPI) confirmed a report from a week earlier that the A’s abandoned the Red Rock site. The companies announced they were giving the A’s 9 acres of a 35-acre site that includes the Tropicana Las Vegas. GLPI said it would provide $175 million for “shared improvements” on the site.
