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Las Vegas ballpark pitch revives debate over public funding for sports stadiums

BY GABE STERN OAKLAND ATHLETICS

CARSON CITY, NEV. • Gov. Joe Lombardo wants to help build Major League Baseball’s smallest ballpark — arguing that the worst team in baseball can boost Las Vegas, a city striving to call itself a sports mecca.

Nationwide debate about public funding for private sports clubs has been revived with the Oakland Athletics ballpark proposal. The issue pits Nevada’s powerful tourism industry, including trade unions, against a growing chorus of mostly progressive groups that, throughout the country, are raising concerns about use of tax dollars to finance sports stadiums but could otherwise fund government services or schools.

The debate over relocating the team from California to Nevada echoes others around the country, where politicians have approved large sums of taxpayer money going to sports clubs in Buffalo, New York; Atlanta, Georgia; and Nashville, Tennessee. In Tempe, Arizona, though, voters rejected a $2.3 billion proposal that would have included a new arena for the NHL’S Arizona Coyotes.

The Oakland A’s organization has hired more than a dozen lobbyists to persuade lawmakers in Nevada’s normally sleepy, 60,000-resident state capital to approve the proposal to build a $1.5 billion stadium, arguing the project will create jobs, boost economic activity and add a new draw to the tourism-based economy in Las Vegas — all without raising taxes. Central to the pitch is the city’s newfound sports success with NFL, NHL and WNBA teams that were nonexistent or based elsewhere seven years ago.

“Las Vegas is clearly a sports town, and Major League Baseball should be a part of it,” Lombardo, a Republican, said in a statement.

But those against giving professional sports teams incentive packages have said tax credits and other means of public financing aren’t beneficial. They cite growing evidence that dollars generated from the new stadium would not be spent at nearby resorts and restaurants. Half of the tax credits may not be paid back to the state. Much of the A’s investment in the community, including homelessness prevention and outreach, hinges on whether the ball club has money left over after stadium costs.

“I just cannot justify giving millions of public dollars to a multibillion dollar corporation while we cannot pay for the basic services that our folks need,” Democratic Assemblywoman Selena La Rue Hatch said.

Last month, Lombardo’s office introduced the stadium financing bill with less than two weeks left in the legislative session.

The bill would provide up to $380 million in public assistance, partly through $180 million in transferable tax credits and $120 million in county bonds — taxpayer-backed loans, to help finance projects and a special tax district around the stadium. Backers have pledged the district will generate enough money to pay off those bonds and interest.

The A’s would not owe property taxes for the publicly owned stadium and Clark County, which includes Las Vegas, also would contribute $25 million in credit toward infrastructure costs.

In places like Buffalo and Oakland, proponents of new stadiums have argued tax incentives prevent the departure of decades-old businesses. But the debate in Nevada differs. The state already heavily relies on entertainment and tourism to power its economy, and lawmakers or appointed boards for years have talked about diversifying the economy to justify incentives to businesses including Tesla. Another deal that legislators are weighing would expand a film tax credit system to $190 million annually over at least 20 years to bring major film studios to Las Vegas.

The Legislature has until Monday, when the session adjourns until 2025, to push through the stadium and film proposals, though the possibility of a special legislative session looms.

DIGITAL EXTRA | NATIONAL POLITICS

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2023-06-05T07:00:00.0000000Z

2023-06-05T07:00:00.0000000Z

https://daily.gazette.com/article/281827173157551

The Gazette, Colorado Springs