The Nevada Independent reported on Friday that a bill was to be introduced that day into the state Senate outlining the amount of state funding lawmakers were willing to tentatively commit to funding a new stadium for the Oakland A’s MLB baseball team on land provided by Ballys’ Tropicana Las Vegas. The nine-acre plot is part of 35 acres owned by GLPI and leased for 99 years by Bally’s. The proposed stadium and entertainment site sits on a contiguous plot of land along with the casino resort hotel.

A financing package, capped at $380 million in public funds was proposed later that day in the bill with those funds contributing to the overall expected cost of the project being $1.5B.

Governor’s Office Introduced the Measure

According to updates and later reporting by the news source, a good portion of the previously announced funding structure carried over from discussions to the written proposed legislation. The draft, seen by reporters there prior to being introduced at the capitol was the first glimpse in writing of the scope of a potential financing agreement that includes $120m from Clark County (where Paradise, Nevada “The Strip” is located), and $180m in tax credits (transferable) by the state.

The Governor’s office itself introduced Senate Bill SB509 which foresees the management of a Stadium Authority undertaken by a 9-member board. The Stadium Authority itself has been authorized since 2016 and the venue it oversees and manages would reportedly be named Allegient Stadium.

Since no new revenue-based funding would be needed, only transferable tax credits, a simple majority vote in both houses of Congress, and a signature by Governor Joe Lombardo who has been in office since January of this year is all that is needed for the measure to become law. A more detailed look at the tax credits shows them to consist of tax-increment financing (TIF district) to repay county bonds and a 30-year-long exemption from taxes. GLPI/Bally’s would allow the use of the property for zero fees and create their own revenue from it by means other than rent or lease costs to the Stadium Authority or ball club.

The ball club itself would be responsible for any over-runs in costs, rather than the county or state, and the property tax exemption would be separate from the private portion of the funding needed to bring the project to fruition.

Adding to the public good and mitigating any potential unseen impacts of the deal, the measure would require the county to create a “resort corridor homelessness prevention and assistance fund”. There would be no financial input from the Authority of the project until construction is completed and then only after debt obligations are met. It would be managed by a partnership with the Nevada Resort Association and the Oakland A’s and will seek to reduce homelessness throughout the Southern Nevada resort corridor.

The corridor, which includes the Las Vegas and Reno areas, has a higher homeless rate than the national average with the Reno area suffering the greatest incidence count between the two. However, it has recently been estimated that as many as 1,500 people live “like moles” beneath the Strip area in tunnels mostly to escape the heat.

Unhoused Population Would Get Help from Funding Scheme

Stated reasons for the higher homeless rate include inflation, high rent, and unemployment. Direct studies of problem gambling and homelessness by causation are few and far between. While the number of homeless people in Nevada could be 3x as many as the national average it’s unclear how baseball or expanded gambling at Bally’s Tropicana Las Vegas would contribute to the problem so the fund should probably be seen simply as a way for lawmakers to capture a financial opportunity to address a very real need in the area with “found money” rather than a mitigation measure.

Earlier, the athletic club had sought $500m in public funding to relocate to a new stadium in Las Vegas but abandoned that plan when the Bally’s opportunity presented itself to them, saving the public some $120m over the previous “ask”.

The Oakland A’s AAA Farm Team, the Las Vegas Aviators of the Minor league have been in the valley as Oakland affiliates since 2019 with the club’s origins in the valley going back to 1983 as the Aviators and under other names, affiliations, and locations since 1919. The Oakland A’s have been seeking a move from California to Las Vegas since at least September 2021 amid trouble securing a new stadium in Oakland. The current arena was first opened in 1966 and last renovated in 2017 after only one other refurbishment in 1995-1996.

The Independent reports that all is not a smooth slide to home base with the deal as the Republican governor and Democratic lawmakers are struggling to address overall budget issues with less than two weeks left in the regular legislative session. Senate leaders and the governor have seemingly used stadium approval as a bargaining chip to get their way. It’s not out of the question for a special legislative session to be called to extend lawmaking business, but it’s unclear if the stadium proposal would survive such a measure or if the governor might try to use his veto power on individual segments of the state’s budget in an attempt to exert power of the Democratic lawmakers or simply keep the government running.

Fast Tracking of Bill Possible

However, special legislative rules do allow for the fast-tracking of certain bills, bypassing the regular parliamentary (bureaucratic) process and allowing lawmakers to amend important measures much quicker than normal. As the measure was introduced in the Senate it would presumably be passed there, be forwarded to the House for approval, and then arrive on the Governor’s desk for his signature or veto.

Source: A’s stadium bill language arrives, caps public financing at $380M, The Nevada Independent, May 26, 2023

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Bally’s Corporation and Gaming & Leisure Properties (GLPI) have announced a binding agreement with the Oakland Athletics of Major League Baseball (Oakland A’s) to construct a Major League Baseball park at Bally’s Tropicana Las Vegas.

Bally’s consummated its purchase of the gaming and other assets when GLPI and PENN transferred ownership of the non-land assets of the Tropicana Las Vegas to Bally’s for $148 million in cash paid to GLPI on September 27, 2022.

Bally’s still intends to operate a casino from the location and expand assets on other portions of the property.

2.5 Million New Visits to the Location Expected Annually

The park is expected to deliver two and a half million fans per year to the only site of its type on the Las Vegas Strip. Benefits heralded in the announcement include enhanced attraction at the site driven by increased visitations, and the ability to further develop the site in a phased manner with a financial approach based on disciplined further investment.

Additional enhancements for iconic and sponsoring brands at one of the busiest traffic intersections in America which sees over seven-million visitor impressions each month, and significant marketing database growth for Bally’s to exploit as part of its global omnichannel growth strategy.

GLPI maintained ownership of the property which it had earlier purchased and was leased back to Penn National Gaming prior to Bally’s purchasing the gaming assets, license rights, etc. GLPI will pitch in up to $175 million toward improvements and receive future rent increases based on the increased value.

Bally’s is also banking on increased footfall for the casino and other assets through the ballpark and other attractions.

The Oakland A’s or stadium authority will have about 9 acres of the 35-acre site assigned for development by Bally’s and GLPI. The stadium would hold as many as 30,000 visitors at a time.

Oakland’s Triple-A minor league team, the Aviators already calls Las Vegas home.

Bally’s Confident but Hedging its Bet

Bally’s kept an Ace in the hole to assign assets and attract other partners, and it has other parties expressing interest in a similar offering. However, it is expected the necessary approvals from the MLB Association as well as public finance and legislative agreements will all come into place to make the current plan a reality.

Bally’s President, George Papanier, said “We are honored to have been selected to partner with the Oakland Athletics on this monumental step in helping to bring Major League Baseball to the great city of Las Vegas and to be a part of the once-in-a-generation opportunity of having a professional baseball team located within a short walk of the Las Vegas Strip.

“The Tropicana has been a landmark of Las Vegas for generations, and this development will enhance this iconic site for generations to come. We are committed to ensuring that the development and ballpark built in its place will become a new landmark, paying homage to the iconic history and global appeal of Las Vegas and its nearly 50 million visitors a year,” Papanier noted.

Among other comments, Peter Carlino, Chairman and CEO of Gaming & Leisure Properties said: “We are pleased to help facilitate their exciting vision for a new ballpark through our contribution of nine acres of the Tropicana site and look forward to the prominent place that the overall project will occupy in the Las Vegas skyline. The Oakland Athletics’ interest in developing a world-class Major League Baseball stadium on our site underscores its status as one of the most prime locations on the Las Vegas Strip and will enhance any future development of our remaining 26 acres.

“As the project moves forward, we also expect that Gaming & Leisure Properties will have opportunities to further invest in the various aspects of the overall project to the extent we deem that doing so will generate an attractive risk-adjusted return on our shareholders’ capital.”

Oakland A’s President Dave Kaval added: “We are excited about the potential to bring Major League Baseball to this iconic location. We are thrilled to work alongside Bally’s and Gaming & Leisure Properties, and look forward to finalizing plans to bring the Athletics to Southern Nevada.”

Source: Bally’s to replace Las Vegas Strip casino with MLB ballpark, G3 Newswire, May 16, 2023

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