On a split vote the Las Vegas City Council extended an exclusive negotiating agreement with the Cordish Companies to develop an arena in downtown Las Vegas at the Wednesday, Jan. 22, City Council meeting.
The four-month extension sets 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 would move ahead for a $390 million state-of-the-art arena with at least 18,000 seats in Symphony Park. Plans also call for a live entertainment district with retail and dining offerings.
The cost breakdown proposed in the extension includes:
• Cordish Companies ($151 million, 39% of total cost in privately held equity);
• and city bonds ($187 million, 48% of total cost backed by the city), for a total cost of $390 million.
• additional financing ($52 million, 13% 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 is more than $400 million, with 4,500 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.
The arena has been a part of a decade-long discussion and vision for downtown and has been one of the three key elements (academic medicine, performing arts and professional sports) of the downtown revitalization the city pursued over time. Renderings and maps of the project are available for download on the city’s FTP site at ftp://ftp.lasvegasnevada.gov/ls/Arena/. No password is needed.