Las Vegas Stadium Authority officials scrambled Friday to explain the significance of a proposed lease agreement in which the Raiders would pay a $1 annual rent fee as part of their relocation to southern Nevada. The $1 rent was part of a 107-page document submitted to the board Thursday during a meeting in which Raiders president Marc Badain and executive vice president Dan Ventrelle gave an update on relocation plans. Board liaison Jeremy Aguero said Friday the proposed $1 annual rent was irrelevant. “The reality is the board can’t receive any of that money because it would jeopardize the tax status of the bonds that we would be issuing,” he said. “That is why the deal was structured the way it was.” The issue involves the building of a $1.9 billion domed stadium with a 65,000 seating capacity for the Raiders and UNLV’s football team. The current deal includes $750 million from a hotel tax approved by lawmakers and signed by Gov. Brian Sandoval. The stadium board is required to have a 30-year lease with the Raiders to oversee the project that will need $1.15 billion in private financing. The Raiders included this clause in the lease proposal: “As payment for its occupancy and use of the Stadium, Stadium Infrastructure and the Stadium Site, the Authority acknowledges that the Team has made a substantial investment in capital expenses to construct the Stadium, and as a result the Team shall be obligated to pay the Authority the sum of One Dollar ($1.00) annually as annual rent (the “Rent Payment”).” Aguero said the clause “essentially has no meaning whatsoever from the standpoint of revenue generated by the board because the board does not participate in the revenues generated by the stadium itself.” The proposed stadium deal includes a $500 million contribution from the Raiders and NFL and a possible $650-million investment from the Adelson family, which owns the Las Vegas Sands Corporation. The relationship with billionaire Sheldon Adelson remains a hurdle because NFL rules prohibit casino owners from having an ownership stake in a team. The Adelson family wants a percentage of the Raiders as part of the stadium deal. The Raiders have told the board that investment bank Goldman Sachs has committed to help finance the deal without the help of the casino magnate. How such a deal would be structured is not clear.
Raiders’ $1 rent proposal has ‘no meaning,’ Vegas official says
East Bay Times | Jan 28