Oakland Raiders Las Vegas NFL Stadium November Room Tax Revenue At All Time Low $3.2 Million

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Oakland Raiders Las Vegas NFL Stadium November Room Tax Revenue At All Time Low $3.2 Million

Oakland Raiders Las Vegas NFL Stadium November Room Tax Revenue At All Time Low $3.2 Million

The Clark County, Nevada Stadium Hotel Tax Revenue report for November 2017 came up with a number that was the lowest in the short history of the collection of the portion of money from hotel room rentals that was earmarked for the Oakland Raiders / UNLV Las Vegas Stadium Project: just $3.2 million.

That’s not only an all-time low, it’s lower than the previous month of Octobers revenue of $4,327,651 by approximately $1,127,651, and lower than the previous low of $3,739,737 by $539,737. The November Stadium Room Tax Revenue news was issued in a tweet by Clark County Commissioner Steve Sisolak, who added that the number was “below projections.” That marks the first time Commissioner Sisolak shared bad news about the stadium tax revenue report without even an attempt to sugar-coat it. And that’s because it represents a giant dip. While Sisolak did not share what the projected number was, my educated guess is that it was at least $4.2 million, which means we should expect to see a deficit number around, if not greater than, $1 million.

What this means is two things: the path to collect $50 million in pre-bond tax money for the stadium bonds hit a giant snag, and if December numbers are similar, then we could see the near-evaporation of the $2.5 million surplus that was posted in October. It also means the planned bond issue of $700 million at 30 years, and assuming a interest rate of 4 percent, and at debt-coverage ratio of 1.5, this revenue report is not enough to effectively pay for that subsidy – it would have to be reduced, or the stadium hotel tax rate of 88/100ths of 1 percent would have to be increased.

This is why I recommended increasing the tax rate to 1.4 percent – to have a cushion to avoid problems like the one created by the horrible event that was One October. But that would call for returning to the Nevada Legislature. Also, this could mean the downsizing of the stadium project to a UNLV-sized facility of 45,000 seats, and a reduction in the subsidy level from $750 million, and because the tax is not throwing off enough monthly money to pay for the bond issue originally proposed for the Oakland Raiders Stadium.

Stay tuned. Merry Christmas!
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