The Las Vegas Stadium Authority, the sole responsible for the ownership and oversight of the National Football (NFL) stadium project designed by Senate Bill 1 during the 30th Special Session of the Nevada State Legislature, is considering on extending the time to pen down a development agreement with the Raiders to construct a 65,000-seat arched roof football stadium in the Southern Nevada when it meets on Thursday, September 14.
The half-year extension isn’t anticipated to hold up the beginning of the construction on the $1.9 billion venture and places the soon to be Las Vegas Raiders on the hook for shelling out money and paying for initial site work should the stadium deal trips.
A legal agreement documents slated to be proposed on Thursday — called an “Enabling Work Memorandum of Understanding” — would change the target date to finish the development agreement to February of 2017 from October 17. The initial stadium legislation, approved by the State of Nevada Legislature in a 30th special session back in October 2016, considered the possibility of a need for extra time and comprehended the option of additional six-month extension.
Jeremy Aguero, the chief analyst for Applied Analysis, which works as the Las Vegas Stadium Authority’s staff, notified the board members earlier this September that they would be looking for the extension resolution at their next meeting.
Regarding the Raiders’ proposed development project schedule, the franchise will be needing to complete preliminary development activities between the stretch of November 2017 and February 2018.
According to Aguero, the main intention of the resolution is to make sure that the Raiders would engage in the 62-acre site preparation at their own risk and that “the Enabling Work memorandum of understanding will not bind or otherwise obligate the authority to any subsequent approval.”
It will also preserve all rights of the Las Vegas Stadium Authority in terms of the project review and approval. And that includes the development agreement and any considerations concerning the issuance of Raiders stadium bonds.
The NFL franchise can’t poke the overall obligation bond proceeds guaranteed by $750 million in new hotel room tax income until the development agreement is forged and the organization has spent $100 million for the first payment in development expenses.
Under the Raiders’ construction pipeline, the stadium contractors Mortenson Construction of Minneapolis and McCarthy Building Cos. of Henderson City are slated to clear the real-estate property in late November and early December.
The nine-member board of directors of the Las Vegas Stadium Authority will get their first peek at several other agreements that have to be inked prior to the development agreement can be contemplated.
The Las Vegas Stadium Authority roles and responsibilities include:
- Owning and Overseeing the Stadium and Land
- Approving the Stadium Location and Development Plan
- Approving the Stadium Operating Agreement
- Managing the Coverage Waterfall Revenue Distribution
- Managing the Stadium Capital Improvement Fund and Related Expenditures