|UNLV acquired 42 acres at E. Tropicana Ave and Koval Lane near the Las Vegas Strip for potential development as a football stadium and campus expansion.|
Under a proposal by the Las Vegas Sands Corp., the Oakland Raiders would relocate to a $1.2 billion, 65,000-seat stadium near the Las Vegas Strip to be co-developed with City of Industry, CA-based Majestic Realty Co.
Sands Corp., which operates the Venetian and Palazzo hotel-casinos on the Strip, confirmed that Chairman Sheldon Adelson met with Davis last week. The company mentioned in a post on Twitter that the Sands "strongly supports a new stadium to attract major sporting & entertainment events" as well as serve as the home of the UNLV Revels. The Las Vegas Review-Journal, acquired last year by a limited-liability company controlled by the Adelson family, majority owners of Las Vegas Sands, detailed the meeting and proposal to build the stadium.
According to the presentation, private investors would contribute $420 million of the domed stadium's cost and the developers would seek about $780 million in public financing. If construction started next year, the stadium would be ready for occupancy by 2020.
"The objective is to benefit and grow our tourism economy; nothing will move that needle like a new world-class stadium," the gaming company said.
The Board of Regents of the University of the Nevada System of Higher Education, on behalf of the University of Nevada, Las Vegas, acquired the 42 vacant acres near UNLV at the northeast corner of E. Tropicana Avenue and Koval Lane from Wells Fargo Bank on Dec. 24 for $50 million, according to a sale deed filed with the Clark County Recorder's Office. UNLV has expressed hopes to build a stadium for its football program at the site through a partnership with the city's gaming, resort and tourism groups (Please see CoStar COMPs #3500335 for more information on this transaction).
The Raiders are shopping for a new home after the expiration of the team's lease at the Oakland Coliseum. The team applied to the NFL for relocation back to Los Angeles, but the league last month chose the Rams, which will relocate from St. Louis this year, playing at the Los Angeles Memorial Coliseum until Rams owner Stan Kroenke completes development of a stadium in Inglewood, CA.
The Chargers will remain in San Diego for the 2016 season and focus on making a deal for a new stadium in San Diego. However, the NFL gave the team the option of moving north to Los Angeles. While Chargers announced Friday that the team has agreed in principle to share the Inglewood facility with the Rams, they must negotiate an agreement by the end of the year. Chargers chairman Dean Spanos issued a statement saying the team committing to working on a long-term solution for a stadium that keeps the team in town.
If the Chargers fail, however, it could open the door for the Raiders' return to Los Angeles, where they played from 1982 to 1994.
In order to become home to an franchise, Las Vegas would have to overcome longtime skepticism by NFL owners and other professional sports teams because of it is a home to legalized sports betting. Supporters argue that those perceptions are outdated, and that Vegas now derives more revenue from other forms of entertainment than gambling.