Oakland Raiders Las Vegas Stadium Bonds February Hotel Tax Revenue Low $3.3 Million
Well, once again, the Las Vegas Review Journal is wrong. About two weeks ago, their celebrated writer Rick Velotta and I had a Twitter feud because he allowed himself to be spun by Clark County Chief Financial Officer Jessica Colvin.
Even as Clark County Commissioner Steve Sisolak told all via my Twitter request that the February Stadium hotel tax revenue was at a low of just over $3 million, Velotta, wrote that Colvin told him it was $4.8 million. Then, he tried to downplay the obvious truth that Las Vegas visitor numbers were down each month compared to the previous year for the last nine months.
Seems like they were trying to help move a bond sale, but even then, when it happened on Wednesday, the deal came up about $4 million less than the $650 million planned to sell – and leaving the Raiders with the hope that they can raise the unaccounted for $56 million. According to my forecast, that will take 14 months to happen.
The $56 million is because on May 1, the Raiders become the collectors of the stadium hotel tax revenue each month. They get the $49 million raised to date – but are short of $750 million by $56 million. They have to pray for the stadium tax to work. Each time the monthly revenue is lower, it takes that much more time to raise the money. It also calls into question the idea that, even with a structure that causes the debt service to rise over time – that point were monthly debt service goes beyond revenues still happens faster than forecast.
The effort was to push back the eventual problem a few years before Clark County has to use its general fund to help pay the bond debt.