Oakland A’s, state leaders reach tentative public financing deal; legislative approval still needed

The Oakland A’s and major state officials have reached a loose agreement for a public financing package significantly less than the $500 million the team originally sought to assist in relocating the franchise to a $1.5 billion stadium in Las Vegas, sources confirmed to The Nevada Independent on Tuesday.

According to sources with knowledge of the discussions, the public financing package that will be presented to lawmakers will be lower than the initial threshold of $195 million in transferable tax credits the state set last week, and see a similar reduction from the initial request of  $200 million in bonds backed by Clark County.

The agreement was reached after weeks of discussion involving representatives from the Major League Baseball team, the governor’s office, the treasurer, representatives of lawmakers and Clark County, among other groups, and marks a sizable step forward after weeks of concerns from lawmakers and the county over the scope of the team’s public financing request.

However, the agreement has not yet been presented to lawmakers and is expected to formally arrive in the next few days. The deal has to be approved by the Legislature before the 120-day legislative session ends June 5, or else could end up being vetted in a special legislative session. 

Sources indicated last week that lawmakers were only willing to contribute up to $195 million in transferable tax credits for stadium construction funding, and a dollar amount had not yet been agreed upon by Clark County. On Friday, Clark County officials said they were concerned taxpayers could end up on the hook to cover debt payments if the stadium wasn’t generating enough revenue. 

The A’s initially said they were seeking $500 million in public funding to assist with stadium construction, but in the weeks since, the team announced they were changing the proposed site and reducing the public dollar request to $395 million. 

The Nevada Independent granted anonymity to the sources so they could speak freely about the status of negotiations for the proposed 30,000-seat retractable-roof stadium that A’s hope to open in time for the 2027 season.

Approval by the Legislature is one sign-off needed by the A’s before construction could start on the ballpark. Major League Baseball’s relocation committee would also need to approve the project by Jan. 1.

The proposed stadium’s proximity to Harry Reid International Airport means the team will also require approval from the Federal Aviation Administration before beginning construction.

“By law, developers must give the FAA the opportunity to evaluate proposed structures near airports to determine whether they could pose a hazard to aircraft or interfere with navigation aids,” a spokeswoman for the FAA said in an email to the Independent. “Each determination is unique. Our determinations identify hazards to air navigation.”

The A’s announced on April 20 it was acquiring 49 acres from Red Rock Resorts for a stadium and entertainment district at Tropicana Boulevard and Dean Martin Road. 

On May 15, Tropicana operator Bally’s Corp. and real estate investment trust Gaming and Leisure Properties (GLPI) confirmed a report from a week earlier that the A’s abandoned the Red Rock site. The companies announced they were giving the A’s 9 acres of a 35-acre site that includes the Tropicana Las Vegas. GLPI said it would provide $175 million for “shared improvements” on the site.

This is a developing story. Check back for updates.

The post Oakland A’s, state leaders reach tentative public financing deal; legislative approval still needed appeared first on The Nevada Independent.