Las Vegas Raiders Stadium Could Cost $100 Million More
The Las Vegas Raiders Stadium is set to begin construction in December 2017. However, it has recently run into a small snag. The project is expected to cost $1.9 billion to build, but proposed tax reforms by the GOP could see this cost increasing by $100 million. Part of the funding for the stadium is coming from tax-exempt bonds. The new GOP tax plan would prevent the stadium from using these bonds tax-free, and the taxes would bring the total cost up by $100 million.
Las Vegas Raiders Stadium Could Lose Tax-Free Bonds
The Raiders Stadium is being built just across from the Mandalay Bay Resort. The total cost of the stadium is being funded by several different parties. The owner of the Raiders, Mark Davis, is paying $500 million towards construction. The bank of America is covering an additional $650 million, and the remaining $750 million will be paid by Las Vegas itself.
In order to cover the $750 million, the Las Vegas Stadium Authority and Southern Nevada Tourism Infrastructure Committee were able to get permission for a new add-on to room charge. The funds raised from this would then be converted to bonds to fund the stadium. The bonds were expected to be tax-free. This add-on room fee saw hotels near the strip adding a 0.88% charge to their rooms, equalling around $1.50. Other hotels located in Clark County were also contributing, but with a 0.5% add-on charge.
Republican Plan Catches Las Vegas Raiders Stadium off Guard
Doubt was cast over this when the Republicans revealed their new tax plan. The new plan changes certain aspects and seeks to prevent this type of funding in the future. Should the current tax plan be signed into law, the bonds would no longer be exempt from taxes and the price of building the stadium would increase by at least $100 million.
The changes caught many people by surprise, and some are wondering why the changes were made. Some are wondering if Sheldon Adelson might have been behind the changes. Adelson is a massive Republican donor and one of the most influential people when it comes to the party’s plans. He had originally been interested in the stadium, pledging $650 million. However, he pulled out after negotiations dragged on. The Bank of America was brought in to cover his portion of the money.
Regardless of whether the tax plan becomes law, construction is set to begin in December and should be completed in 2020.