Las Vegas takes first step to create entertainment district for soccer arena
The first baby step of creating a tourism improvement district on the 59 acres downtown at Symphony Park was approved with scant discussion by the Las Vegas City Council on Wednesday.
If a proposed soccer stadium goes nowhere, so does the district.
If the stadium goes forward, then the district would shift existing sales and use taxes that go to the state and retain them in the local improvement district, said Bill Arent, director of the Economic and Urban Development Department.
Taxes would not be raised, just shifted.
The district, which would require approval by the Nevada Tourism Commission and the City Council, would be created April 1.
There is no estimate yet on how much revenue would be diverted to the tourism district, Arent said.
Wednesday’s vote authorized hiring a consultant to write a report on the fiscal effect of the district, bond repayment and whether it would fit the standards of a tourism improvement district.
Without specifics, there was little discussion by council members about the tourism district creation.
However, Paul Moradkhan, director of government affairs for the Las Vegas Metro Chamber of Commerce, cautioned, “Extensive questions must still be answered before the improvement district. We need significant conversations about financing before the district goes forward.”
The district would collect sales taxes from retail businesses expected to form around a proposed, but not yet confirmed, soccer stadium that needs a major league soccer team commitment before it can be approved to go forward.
Businesses that exist at Symphony Park, such as The Smith Center for the Performing Arts, would not be paying the improvement district taxes.
One standard that must be met and approved by the Tourism Commission is a finding that a preponderance of sales and use taxes that are directed to the district would be attributed to transactions with tourists, not Nevadans.
The improvement district would last 20 years if it is authorized, if the open-air stadium is built, if funding is approved by the City Council and if a professional soccer team comes to Las Vegas.
Arent said the breakdown of public and private funding for a stadium should be presented to the council in August.
The stadium is a joint project of Cordish Cos. and Findlay Entertainment.
Contact Jane Ann Morrison at jmorrison@reviewjournal.com or 702-383-0275.
