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S.B. 509
Senate Bill No. 509–Committee on Finance (On Behalf of the Office of the Governor) May 26, 2023
Referred to Committee on Finance
SUMMARY—Revises provisions governing stadium infrastructure projects. (BDR S-1221)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Contains Appropriation not included in Executive Budget.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to economic development; enacting the Southern Nevada Tourism Innovation Act; amending the Southern Nevada Tourism Improvements Act; requiring the establishment in Clark County of a sports and entertainment improvement district for the financing of a Major League Baseball stadium project; authorizing the Clark County Stadium Authority to carry out the provisions of law governing the Major League Baseball stadium project; requiring the creation of a resort corridor homelessness prevention and assistance fund; authorizing the pledge of certain taxes, fees and charges for the payment of bonds and other purposes relating to the financing of the Major League Baseball stadium project; authorizing the State Treasurer to provide a credit enhancement on bonds issued to finance the construction of the Major League Baseball stadium project; requiring the issuance of general obligations of Clark County for the financing of a Major League Baseball stadium project under certain circumstances; authorizing the issuance of transferrable tax credits to developer partners for qualified projects relating to the Major League Baseball stadium project; making an appropriation; and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law creates the Clark County Stadium Authority as a public body to
carry out the provisions of the Southern Nevada Tourism Improvements Act
governing the National Football League stadium project. (Chapter 2, Statutes of
Nevada 2016, 30th Special Session, at page 19)
This bill enacts the Southern Nevada Tourism Innovation Act to establish a
method to finance a Major League Baseball stadium project. Sections 3-17 of this
bill define terms for the purposes of the Southern Nevada Tourism Innovation Act.
Sections 18-35 of this bill establish a method to finance the design, entitlement,
acquisition, construction, improvement, repair, demolition, reconstruction,
equipment, financing, promotion, leasing, subleasing, management, operation or
maintenance of a Major League Baseball stadium project.
Section 21 of this bill authorizes the Stadium Authority to exercise certain
powers which are in addition to the powers granted to the Stadium Authority under
the Southern Nevada Tourism Improvements Act.
Section 28 of this bill requires the Board of County Commissioners of Clark
County to create a sports and entertainment improvement district in unincorporated
Clark County to assist in the financing of a Major League Baseball stadium project
and authorizes the Board to amend or modify the geographic boundaries of the
district by ordinance.
Section 22 of this bill requires the Stadium Authority to negotiate and enter
into a development agreement, lease agreement and non-relocation agreement with
respect to the Major League Baseball stadium project if the Board of Directors
determines that a Major League Baseball team has committed to locate or relocate
within the sports and entertainment district. Section 22 establishes requirements for
a development agreement, lease agreement and non-relocation agreement. Section
33 of this bill sets forth additional provisions which must be included in the
development agreement, lease agreement and non-relocation agreement, including,
without limitation, the maximum financial contribution of the Stadium Authority to
the development and construction of the Major League Baseball stadium project.
Section 24 of this bill provides for the confidentiality of certain information
provided to the Stadium Authority under certain circumstances. Section 25 of this
bill generally exempts the Major League Baseball stadium project from laws
requiring competitive bidding or specifying procedures for the procurement of
goods or services, and from the statutory provisions governing public works
projects, except that the pertinent construction contracts must comply with the
statutory prevailing wage provisions and, if the Stadium Authority determines a
subcontract can be competitively bid without affecting the quality of the project,
must be competitively bid. Additionally, section 26 of this bill requires that any
contract or agreement entered into by a prime contractor for the construction of the
Major League Baseball stadium project must include provisions requiring that at
least 15 percent of the subcontracts for the project must be with small local
businesses.
Section 27 of this bill requires the Stadium Authority to retain the sole and
exclusive right to enter into agreements for the sale, license or transfer of personal
seat licenses, stadium builder’s licenses or other similar instruments for any and all
seats in the Major League Baseball stadium project to generate revenues for the
construction of the Major League Baseball stadium project.
Section 34 of this bill requires the Board of County Commissioners of Clark
County to issue general obligations of the County upon the request of the Board of
Directors of the Stadium Authority and once certain requirements have been met in
an amount that can be supported by the proceeds of certain taxes, fees and charges
described in section 29 of this bill. Section 34 also requires the proceeds from the
issuance of the general obligations to be distributed to the Stadium Authority and
used for certain purposes related to the Major League Baseball stadium project.
Section 30 of this bill authorizes the State Treasurer to provide a credit
enhancement on bonds issued to finance the construction of the Major League
Baseball stadium project, and sections 38 and 40 of this bill make an appropriation,
effective on July 1, 2024, of $25 million to State Infrastructure Bank for this credit
enhancement. Section 32 of this bill requires the county treasurer of Clark County,
after paying any principal, interest or other costs due in connection with any bonds
or securities and establishing a reserve fund, to transfer the proceeds of the taxes,
fees and charges pledged to the financing or refinancing of the Major League
Baseball stadium project to the Stadium Authority to be used for certain purposes.
Section 31 of this bill authorizes a developer partner of a qualified project to
apply to the Stadium Authority for a certificate of eligibility for transferrable tax
credits. Section 31 prohibits the Stadium Authority from approving more than
$36,000,000 in transferrable tax credits in a fiscal year or $180,000,000 in total for
all qualified projects in this State.
Section 20 of this bill requires the Board of County Commissioners to create a
resort corridor homelessness prevention and assistance fund to provide assistance to
people who are at risk of becoming homeless or are currently experiencing
homelessness by supporting certain programs. Section 23 of this bill requires, as
part of the development and operation of the Major League Baseball stadium
project, the development of a community benefits agreement and the creation of a
stadium community oversight committee to oversee the implementation and
administration of the community benefits agreement.
Section 35 of this bill provides that the authority of the Board of Directors to
undertake the Major League Baseball stadium project expires under certain
circumstances.
Sections 36 and 37 of this bill revise the membership of the Board of Directors
of the Stadium Authority.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Sections 2 to 35, inclusive, of this act may be cited
as the Southern Nevada Tourism Innovation Act.
Sec. 2. 1. The Legislature hereby finds that:
(a) Because the Las Vegas area is the most visited and
economically significant tourism market within this State, the
tourism industry within the Las Vegas area is critically important to
the economy of that local area and this State, and the continued
growth and success of the tourism industry within the Las Vegas
area is particularly vital to the general welfare and prosperity of that
local area and this State.
(b) A significant part of the continued growth and success of the
tourism industry within the Las Vegas area depends upon the unique
attractiveness, excitement, atmosphere and vitality of the Las Vegas
Strip and the development of new, innovative and diversified
facilities, venues and forms of entertainment within the Las Vegas
area to ensure that the area may:
(1) Continue to be the preferred and premier destination for
tourists from all walks of life in the ever-advancing technological
age of the 21st century;
(2) Remain competitive with other national and international
tourism destinations that are continually evolving and seeking to
draw more tourists to their facilities, venues and forms of
entertainment; and
(3) Retain its world-famous, unique and incomparably
distinctive status as the Sports and Entertainment Capital of the
World.
(c) It is in the public interest and beneficial to the public welfare
to diversify, enhance and grow the largest tourism market in this
State through the development of large-scale and one-of-a-kind
convention, entertainment and sports venues and facilities within the
Las Vegas area, including the Las Vegas Strip, by constructing and
operating a state-of-the-art stadium capable of attracting
professional sports franchises, such as teams from Major League
Baseball, hosting national sporting events, such as the World Series
and World Baseball Classic, playoff, tournament and championship
games, and holding other large-scale entertainment and sports
events, such as concerts, festivals, motor sports, prizefighting and
rodeos.
(d) Because the Las Vegas area, including the Las Vegas Strip,
is the largest tourism market in this State and because the Las Vegas
area, including the Las Vegas Strip, is world famous, unique and
incomparably distinctive, the Las Vegas area is the only area in this
State that:
(1) Is appropriate and suitable for the development of such
large-scale and one-of-a-kind entertainment and sports venues and
facilities; and
(2) Has all the necessary local and special attributes,
conditions and resources that are essential to support such large-
scale and one-of-a-kind entertainment and sports venues and
facilities, including, without limitation, the necessary economic
conditions, capital investment, and infrastructure that could support
the development and operation of such venues and facilities, support
industries and businesses, workforce, population and visitors.
(e) The Clark County Stadium Authority is positioned to play a
significant role in the continued growth and success of the tourism
industry within the Las Vegas area by facilitating the development
and operation of such new, innovative and diversified facilities,
venues and forms of entertainment within the Las Vegas area.
2. The Legislature hereby declares that:
(a) Because the Las Vegas area is the only area in this State that
is appropriate and suitable for the development of such large-scale
and one-of-a-kind entertainment and sports venues and facilities and
has all the necessary local and special attributes, conditions and
resources that are essential to support such venues and facilities, it is
necessary to enact a law of local and special application to promote,
develop and secure the advantages of the local and special
characteristics and circumstances within the Las Vegas area, which
are found nowhere else within this State, and to benefit the residents
of that local and special area.
(b) Therefore, given that a law of local and special application is
necessary to promote, develop and secure the advantages of the
local and special characteristics and circumstances within the Las
Vegas area, which are found nowhere else within this State, and
given that such a law is necessary to benefit the residents of that
local and special area, a general law cannot be made applicable to
the purposes, objects, powers, rights, privileges, immunities,
liabilities, duties and disabilities set forth in this act.
Sec. 3. Except as otherwise provided in this act or unless the
context otherwise requires, the terms used or referred to in this act
have the meanings ascribed to them in the Local Government
Securities Law, but the definitions set forth in sections 4 to 17,
inclusive, of this act, unless the context otherwise requires, govern
the construction of this act.
Sec. 4. “Baseball Stadium Events Company” means a person
whose business is organized under the laws of this State for the
purpose of leasing the Major League Baseball stadium project from
the Stadium Authority and whose business is owned by:
1. The Major League Baseball team or its affiliate;
2. A developer partner or its affiliate; or
3. The Major League Baseball team or its affiliate and a
developer partner or an affiliate of a developer partner.
Sec. 5. “Board of County Commissioners” means the Board of
County Commissioners of Clark County.
Sec. 6. “Board of Directors” means the Board of Directors of
the Stadium Authority appointed pursuant to subsection 1 of section
22 of the Southern Nevada Tourism Improvements Act, as amended
by section 36 of this act.
Sec. 7. “Bonds” means one or more series of general
obligation bonds additionally secured by pledged revenues
authorized to be issued by the County pursuant to subsection 2 of
section 34 of this act and the Local Government Securities Law and
any general obligation bonds additionally secured by pledged
revenues issued to refund all or a portion of such bonds issued
pursuant to subsection 2 of section 34 of this act and the Local
Government Securities Law.
Sec. 8. “Capital investment” means all costs and expenses
incurred by a developer partner or Baseball Stadium Events
Company in a qualified project in connection with the acquisition,
construction, installation and equipping of the qualified project.
Sec. 9. “County” means Clark County, Nevada.
Sec. 10. “Developer partner” means a person who provides
money to pay the costs of the design, acquisition, construction,
entitlement, leasing, improvement, financing, equipping, operation
or maintenance, or any combination thereof, of the Major League
Baseball stadium project or the cost of any capital improvements to
the Major League Baseball stadium project.
Sec. 11. “Major League Baseball stadium project” means any
enterprise to design, acquire, construct, entitle, lease, improve,
equip, finance, operate or maintain, or any combination thereof,
within the boundaries of the sports and entertainment improvement
district a baseball stadium capable of hosting the home games of the
Major League Baseball team and that complies with section 22 of
this act and all necessary or desirable appurtenances or incidentals
thereof for the operation of the Major League Baseball stadium
project.
Sec. 12. “Major League Baseball team” means the Major
League Baseball team that is locating or relocating within the sports
and entertainment improvement district.
Sec. 13. “Person” means a natural person, any form of
business or social organization and any other nongovernmental legal
entity, including, but not limited to, a corporation, partnership,
association, trust or unincorporated organization. The term does not
include a government, governmental agency or political subdivision
of a government.
Sec. 14. “Qualified project” means a project that meets the
definition and applicable requirements of a Major League Baseball
stadium project, as set forth in this act.
Sec. 15. “Resort corridor homelessness prevention and
assistance fund” means the fund created by the County pursuant to
section 20 of this act.
Sec. 16. “Sports and entertainment improvement district”
means the district created by section 28 of this act.
Sec. 17. “Stadium Authority” means the Clark County
Stadium Authority created by section 21 of the Southern Nevada
Tourism Improvements Act.
Sec. 18. In addition to the powers and authority vested in the
Stadium Authority pursuant to the Southern Nevada Tourism
Improvements Act, the Stadium Authority is hereby authorized and
empowered to undertake the development of the Major League
Baseball stadium project pursuant to the terms of this act.
Sec. 19. The Board of Directors shall create a baseball stadium
tax account and a baseball stadium capital projects fund to carry out
the provisions of this act.
Sec. 20. 1. The Board of County Commissioners shall create
a resort corridor homelessness prevention and assistance fund.
2. In managing the fund, the County shall coordinate with the
Major League Baseball team and the Nevada Resort Association.
3. Money in the fund shall be used exclusively to provide
assistance to people who are at risk of becoming homeless or are
currently experiencing homelessness by supporting programs which
are designed to:
(a) Prevent homelessness;
(b) Help individuals and families to regain stable housing; or
(c) Diminish the incidence of homelessness in and around the
Southern Nevada resort corridor.
4. To the extent practicable, money in the fund shall be
invested in programs which provide a range of service, including,
without limitation, emergency rental assistance, utility assistance,
case management, job training, rehabilitation, respite and counseling
services.
Sec. 21. In furtherance of the duties and responsibilities set
forth in this act, the Stadium Authority may:
1. Apply for and accept any gift, donation, bequest, grant or
other source of money to finance or develop the Major League
Baseball stadium project.
2. Require and receive such audits and other measurements of
the performance of a developer partner or the Baseball Stadium
Events Company as it deems necessary to ensure that the operation
of the Major League Baseball stadium project complies with this
act, except that the Stadium Authority may not require an audit of
the general business of the Major League Baseball team or any
developer partner.
3. Consider and approve or disapprove:
(a) An annual capital improvement budget for the Major League
Baseball stadium project submitted by the Baseball Stadium Events
Company.
(b) Any specific requests for capital improvements proposed by
the Baseball Stadium Events Company or the Major League
Baseball team.
4. Perform any other act that may be necessary, convenient,
desirable or appropriate to carry out the powers and duties of the
Stadium Authority with respect to the Major League Baseball
stadium project.
Sec. 22. 1. The Stadium Authority shall negotiate and may
enter into a development agreement, lease agreement and a
non-relocation agreement with respect to the Major League Baseball
stadium project that complies with subsections 2, 3 and 5, as
applicable, if the Board of Directors:
(a) Within 12 months after the effective date of this act or, if the
Board determines that an extension of this period is necessary or
desirable, within 18 months after that effective date, finds that
Major League Baseball has authorized the Major League Baseball
team to locate or relocate within the sports and entertainment
improvement district;
(b) Within 12 months after the effective date of this act or, if the
Board determines that an extension of this period is necessary or
desirable, within 18 months after that effective date, finds that the
Major League Baseball team has committed to locate or relocate
within the sports and entertainment improvement district;
(c) Selects as a developer partner one or more persons who
have:
(1) Disclosed to the Board as a matter of public record the
identity of the person or persons;
(2) Provided documentation satisfactory to the Board to
indicate that the person or persons selected to be a developer partner
have an affiliation with the Major League Baseball team;
(3) Demonstrated to the satisfaction of the Board that the
developer partner is able to successfully develop and construct the
Major League Baseball stadium project; and
(4) Provided to the Board adequate financial security for the
performance of the financial obligations of a developer partner for
the development and construction of the Major League Baseball
stadium project; and
(d) Selects a Baseball Stadium Events Company which has
disclosed to the Board the identity of each of its owners and
managers.
2. A development agreement for the Major League Baseball
stadium project entered into by the Stadium Authority with a
developer partner selected by the Board of Directors pursuant to
paragraph (c) of subsection 1 must require the location, design, fit
and finish of the Major League Baseball stadium project to be
consistent with first-class, premier Major League Baseball facilities
currently in operation or approved for construction by Major League
Baseball and:
(a) Identify the site of the project;
(b) Set forth the overall design, scope and specifications of the
project, which must include, without limitation, an enclosed baseball
stadium with an attendance capacity of approximately 30,000
persons;
(c) Set forth the sources of financing to pay the costs of the
development and construction of the project in a manner consistent
with the provisions of sections 18 to 35, inclusive, of this act;
(d) Require the developer partner to provide periodic progress
reports to the Board of Directors on the status of the development
and construction of the project;
(e) Set forth the procedures for the provision of the periodic
progress reports described in paragraph (d) and the information
required to be included in such reports;
(f) State that any and all development and construction cost
overruns for the development and construction of the project must
be the sole responsibility of the developer partner, except that any
cost overrun must not be the responsibility of the developer partner
if the cost overrun is caused by a change in development or
construction mandated by the Stadium Authority after the execution
of the development agreement, other than a change in development
or construction after the execution of the development agreement
that is required to comply with a building code, including, without
limitation, a change relating to building safety;
(g) Contain provisions that are consistent with sections 25, 26
and 33 of this act;
(h) Provide for an adequate contribution by the developer
partner for the construction or improvement of any infrastructure off
the site of the project that is determined to be necessary for the
project by the Department of Transportation, the County or any
municipality in which the project is located and that is specified in
the regional infrastructure and service evaluation required for a high
impact project before a special use permit is issued for the project;
(i) Require that the developer partner ensure that no action or
inaction by the developer partner, or any person hired or retained by
the developer partner to act on behalf of the developer partner, in the
development or construction of the project results in a mechanic’s
lien or judgment lien against the project that is not cured by the
developer partner within a customary amount of time using
commercially reasonable efforts, which must be determined in
accordance with the laws of this State and must be such time and
efforts as are approved by the Board of Directors;
(j) Take into consideration the use of multimodal facilities that
use alternative modes of transportation and do not have detrimental
impacts on other permitted transportation projects; and
(k) Contain such other terms as deemed necessary and
appropriate by the Stadium Authority.
3. A lease agreement entered into by the Stadium Authority
with the Baseball Stadium Events Company described in paragraph
(d) of subsection 1 must set forth the requirements and
responsibilities of the Baseball Stadium Events Company with
respect to the operation of the Major League Baseball stadium
project and must:
(a) Be for a term of not less than 30 years and may include
rights for the Baseball Stadium Events Company to renew the lease
agreement with the approval of the Stadium Authority;
(b) Grant the Baseball Stadium Events Company full operational
control of the project;
(c) Not contain any provision that interferes with the discretion
of the Baseball Stadium Events Company to operate the project,
including, without limitation, a provision restricting in any manner
the programs or events that may be held at the project;
(d) Authorize the Baseball Stadium Events Company to enter
into an agreement with another person to operate the project on a
day-to-day basis, as deemed necessary or appropriate by the
Baseball Stadium Events Company;
(e) Establish a minimum standard for the maintenance of, and
capital reinvestment in, the project to ensure that the design and
development standards set forth in sections 18 to 35, inclusive, of
this act are maintained or enhanced throughout the term of the lease
agreement;
(f) Provide for the annual allocation of the revenue from, and
expenses of, the operation of the project in a manner consistent with
sections 18 to 35, inclusive, of this act;
(g) State that the Baseball Stadium Events Company and the
developer partner are liable jointly and severally for the operating
losses of the project or the Baseball Stadium Events Company;
(h) Require an annual audit of the Baseball Stadium Events
Company by an independent certified public accountant in this State
who does not provide any similar or related services to a developer
partner or the Major League Baseball team, or any affiliate,
subsidiary, principal or related party of a developer partner or the
Major League Baseball team, and who is selected by the mutual
agreement of the Stadium Authority and the Baseball Stadium
Events Company;
(i) Require the cost of the audit described in paragraph (h) to be
divided equally between the Stadium Authority and the Baseball
Stadium Events Company;
(j) Require that the term of any lease or sublease entered into by
the Baseball Stadium Events Company with the Major League
Baseball team must be at least 30 years;
(k) State that a person owning a controlling ownership interest
in the Baseball Stadium Events Company may sell or otherwise
transfer the person’s ownership interest to a related or unrelated
third party only upon the approval of the Stadium Authority and that
the Stadium Authority must not unreasonably withhold such
approval;
(l) Provide that the Stadium Authority must comply with the
confidentiality provisions of section 24 of this act;
(m) Provide that the Baseball Stadium Events Company must
fund annually a capital reserve in an amount sufficient to ensure the
facility standard is maintained throughout the life of the Major
League Baseball stadium project, as determined jointly by the
Baseball Stadium Events Company and the Stadium Authority; and
(n) Such other terms and conditions as deemed necessary and
appropriate by the Board of Directors.
4. The Stadium Authority may enter into a combined
development and lease agreement that complies with the provisions
of subsections 2 and 3.
5. A non-relocation agreement entered into by the Stadium
Authority with the Baseball Stadium Events Company described in
subsection 1 must:
(a) Set forth the requirements and responsibilities of the
Baseball Stadium Events Company with respect to the conditions
under which the Major League Baseball team may relocate from the
sports and entertainment improvement district;
(b) Be for a term of not less than 30 years;
(c) Provide for damages in the event the Major League Baseball
team relocates in violation of the agreement in an amount not less
than:
(1) The amount required for the repayment of the principal
and interest then outstanding on the bonds issued to finance or
refinance the Major League Baseball stadium project;
(2) An amount equal to the then outstanding tax credits
subject to repayment pursuant to paragraph (g) of subsection 4 of
section 32 of this act; and
(3) Any costs resulting from early termination of such bonds;
and
(d) Require the Baseball Stadium Events Company to provide
evidence satisfactory to the Stadium Authority of the ability to
satisfy the terms of the non-relocation agreement in the event the
Major League Baseball team relocates in violation of the agreement.
6. The Stadium Authority shall be considered a third-party
beneficiary of all agreements entered into by the developer partner,
the Baseball Stadium Events Company and the Major League
Baseball team with respect to the development, design, construction
or operation of the Major League Baseball stadium project.
Sec. 23. 1. The developer partner and the Baseball Stadium
Events Company shall develop a community benefits agreement to
ensure the greatest possible participation by all segments of the local
community in the economic opportunities available in connection
with the design, construction and operation of the Major League
Baseball stadium project developed by the developer partner and
operated by the Baseball Stadium Events Company. The community
benefits agreement must be approved by the Board of Directors. The
community benefits agreement must be reviewed and updated not
less than once every 5 years and each such update must be approved
by the Board of Directors.
2. A baseball stadium community oversight committee must be
created to oversee the implementation and administration of the
community benefits agreement developed pursuant to subsection 1.
The baseball stadium community oversight committee is hereby
authorized to enforce the provisions of the community benefits
agreement which it was created to oversee.
3. The baseball stadium community oversight committee must
include at least one member who is appointed by the Board of
County Commissioners. The member appointed by the Board of
County Commissioners must not be:
(a) An elected official;
(b) An employee of the Major League Baseball team or an
affiliate or related entity of the Major League Baseball team;
(c) A representative of a business that is engaged by a business
providing goods or services to the Major League Baseball team or
the Major League Baseball stadium project; or
(d) A representative of a labor union representing employees, or
seeking to represent employees, working at or for the Major League
Baseball stadium project.
Sec. 24. 1. Except as otherwise provided in subsection 3 and
NRS 239.0115, the Stadium Authority shall keep confidential any
record or other document provided to the Stadium Authority by a
developer partner, the Major League Baseball team or the Baseball
Stadium Events Company, which is in the possession of the Stadium
Authority, if the person providing the information:
(a) Submits a request in writing that the record or other
document be kept confidential by the Stadium Authority; and
(b) Demonstrates to the satisfaction of the Stadium Authority
that the record or other document contains proprietary or
confidential information.
2. If the Stadium Authority determines that a record or other
document contains proprietary or confidential information, the Chair
of the Board of Directors shall attach to the file containing the
record or document:
(a) A certificate signed by him or her stating that a request for
confidentiality was made by the requesting entity and the date of the
request;
(b) A copy of the written request submitted by the requesting
entity;
(c) The documentation to support the request submitted by the
requesting entity; and
(d) A copy of the decision of the Stadium Authority determining
that the record or other document contains proprietary or
confidential information.
3. Records and documents that are confidential pursuant to this
section:
(a) Are proprietary or confidential information of the requesting
entity;
(b) Are not a public record; and
(c) Must not be disclosed to any person who is not an officer or
employee of the Stadium Authority unless the requesting entity
consents to the disclosure.
4. As used in this section, “proprietary or confidential
information” has the meaning ascribed to it in NRS 360.247.
Sec. 25. 1. Except as otherwise provided in sections 18 to
35, inclusive, of this act and notwithstanding any other provision of
law to the contrary:
(a) Any contract, lease, sublease, lease-purchase agreement,
management agreement or other agreement entered into pursuant to
sections 18 to 35, inclusive, of this act by the Stadium Authority, a
developer partner or any related entity relating to the Major League
Baseball stadium project financed in whole or in part pursuant to
sections 18 to 35, inclusive, of this act, and any contract, lease,
sublease, lease-purchase agreement, management agreement or
other agreement that provides for the design, entitlement,
acquisition, construction, improvement, repair, demolition,
reconstruction, equipment, financing, promotion, leasing,
subleasing, management, operation or maintenance, or any
combination thereof, of the Major League Baseball stadium project
or any portion thereof, or the provision of materials or services for
the project are exempt from any law:
(1) Requiring competitive bidding or otherwise specifying
procedures for the award of agreements of a type described in this
paragraph;
(2) Specifying procedures for the procurement of goods or
services; or
(3) Limiting the term of any agreement of a type described in
this paragraph.
(b) The provisions of chapter 341 of NRS do not apply to the
Major League Baseball stadium project financed in whole or in part
pursuant to sections 18 to 35, inclusive, of this act or to any
agreement of a type described in paragraph (a).
(c) The provisions of chapter 338 of NRS do not apply to the
Major League Baseball stadium project financed in whole or in part
pursuant to sections 18 to 35, inclusive, of this act or to any
agreement of a type described in paragraph (a), except that:
(1) The provisions of NRS 338.013 to 338.090, inclusive,
apply to any construction work to be performed under any contract
or other agreement pertaining to the project even if the estimated
cost of the construction work is not greater than $250,000 or the
construction work does not qualify as a public work, as defined in
NRS 338.010;
(2) Any person or entity that executes one or more contracts
or agreements for the actual construction, alteration, repair or
remodeling of the project shall include in such a contract or
agreement the contractual provisions and stipulations that are
required to be included in a contract for a public work pursuant to
the provisions of NRS 338.013 to 338.090, inclusive; and
(3) The Stadium Authority, any contractor who is awarded a
contract or enters into an agreement to perform the construction,
alteration, repair or remodeling of such an undertaking and any
subcontractor on the undertaking shall comply with the provisions
of NRS 338.013 to 338.090, inclusive, in the same manner as if the
County had undertaken the project or had awarded the contract.
2. The Stadium Authority and any prime contractor,
construction manager or project manager selected by the Stadium
Authority or a developer partner shall competitively bid all
subcontracts involving construction which the Stadium Authority
determines can be competitively bid without affecting the quality of
the Major League Baseball stadium project. Any determination by
the Stadium Authority that such a subcontract can or cannot be
competitively bid without affecting the quality of the Major League
Baseball stadium project is conclusive in the absence of fraud or a
gross abuse of discretion. The Stadium Authority shall establish one
or more procedures for competitive bidding which:
(a) Must prohibit bidders from engaging in bid-shopping;
(b) Must not permit subcontractors to avoid or circumvent the
provisions of paragraph (c) of subsection 1; and
(c) Must, in addition to the requirements of section 26 of this
act, provide a preference for Nevada subcontractors in a manner that
is similar to, and with a preference that is equivalent to, the
preference provided in NRS 338.1389.
3. Any determination by the Stadium Authority regarding the
establishment of one or more procedures for competitive bidding,
and any determination by a developer partner or its prime
contractor, construction manager or project manager regarding the
award of a contract to any bidder, is conclusive in the absence of
fraud or a gross abuse of discretion.
Sec. 26. 1. In addition to any other requirements set forth in
sections 18 to 35, inclusive, of this act, and except as otherwise
provided in subsection 8, a development agreement entered into
pursuant to section 22 of this act, a lease agreement entered into
pursuant to that section, a combined development agreement and
lease agreement entered into pursuant to that section and any other
agreement of any kind entered into by the Stadium Authority with a
developer partner, must include provisions which require that any
contract or other agreement entered into by a prime contractor
selected by the Stadium Authority or a developer partner for the
construction of the Major League Baseball stadium project must
include a provision requiring that at least 15 percent of the Major
League Baseball stadium project must be subcontracted to small
local businesses.
2. A business shall be deemed to be a small local business for
the purposes of this section if:
(a) The business is financially and operationally independent
from any other business;
(b) The business is not temporary and has operated for at least 4
years before entering into the contract or agreement;
(c) The business maintains its principal place of business in a
fixed location within this State;
(d) The business has obtained all necessary licenses and
registration within this State; and
(e) The annual revenues of the business for each of the
immediately preceding 3 fiscal years has not exceeded:
(1) For public works projects, $20,000,000;
(2) For any other construction projects, $10,000,000;
(3) For any goods, materials, equipment and general services
32 contracts, $10,000,000;
(4) For professional services including, without limitation,
architectural and engineering services, $2,500,000; and
(5) For trucking services, $3,500,000.
3. A contractor that subcontracts work to a small local business
pursuant to a contract or other agreement described in subsection 1
shall allow the small local business to be covered by any bond or
insurance of the contractor and may require the subcontractor to pay
a proportionate share of the cost for such coverage by the bond or
insurance.
4. A small local business to which work is subcontracted by a
contractor pursuant to a contract or other agreement described in
subsection 1 must ensure that its employees are hired in a manner
that does not discriminate against any person on any basis
prohibited by law. Such a contractor that subcontracts such work
shall not impose any requirements on the small local business
relating to the employees selected by the small local business to
perform the subcontracted work.
5. A contractor that subcontracts work to a small local business
pursuant to a contract or agreement described in subsection 1 shall
provide a mentorship program to assist the small local business to
develop the skills necessary to carry out the work that is
subcontracted.
6. A prime contractor and each contractor that subcontracts
work to a small local business pursuant to a contract or other
agreement described in subsection 1 shall submit information to the
Stadium Authority verifying that the contractor has complied with
the provisions of this section, and shall maintain all records,
including, without limitation, any information required by the
Stadium Authority, to ensure compliance with this section for not
less than 5 years after the expiration of the subcontract. Such
records must be made available for inspection to the Stadium
Authority upon request.
7. Unless the requirements of subsection 1 are waived by the
Stadium Authority pursuant to subsection 8, the failure of a prime
contractor to comply with the requirements of subsection 1 shall be
deemed a material breach of contract.
8. The Stadium Authority may waive the requirements of
subsection 1 if a prime contractor presents proof satisfactory to the
Stadium Authority that there is an insufficient number of small local
businesses available and qualified to subcontract for the work to be
performed. Such proof must include, without limitation, evidence
that:
(a) Reasonable efforts were made to notify small local
businesses of the availability of work to be performed under a
contract or other agreement described in subsection 1, which must
include evidence of public advertisement calling for bids for a
period of not less than 20 days before the date on which such bids
must be submitted; and
(b) In considering the availability and qualifications of a small
local business to perform work under a contract or other agreement
described in subsection 1, a contractor reasonably considered the
work experience, safety history and financial stability of the small
local business.
Sec. 27. 1. The Stadium Authority shall retain the sole and
exclusive right to enter into agreements to provide for the sale,
license or transfer of personal seat licenses, stadium builder’s
licenses or other similar instruments for any and all seats in the
Major League Baseball stadium project to generate revenues used
for construction of the Major League Baseball stadium project.
2. The Stadium Authority may not grant any other person the
right to enter into such agreements, but it may in the development
agreement entered into pursuant to subsection 2 of section 22 of this
act or a combined development and lease agreement entered into
pursuant to subsection 4 of section 22 of this act, agree that any
agreements regarding personal seat licenses or similar instruments
will be made only in consultation with the developer partner or, if
applicable, the Baseball Stadium Events Company and the Major
League Baseball team. Such personal seat licenses or similar
instruments may contain priority purchase rights to ticketed events
in the Major League Baseball stadium project, including the home
games of the Major League Baseball team.
3. Proceeds from the sale of personal seat licenses or similar
instruments must be collected by or on behalf of the Stadium
Authority for the benefit of the Major League Baseball stadium
project and are a payment by purchasers to the owner of the Major
League Baseball stadium project for special rights of access to
events at the Major League Baseball stadium project.
4. With the consent of the Baseball Stadium Events Company
and the Major League Baseball team, the Stadium Authority shall
have the power to enter into one or more agreements with third
parties pursuant to which it sells to each such third party, the right to
receive and own the proceeds from the sale, license or transfer of
personal seat licenses, stadium builder’s licenses or other similar
instruments as described in subsection 1, for cash and such other
consideration as it deems appropriate to be paid upon sale or over
time. Any financing or similar transaction by any such third party to
effect such sale:
(a) Shall not be deemed a debt of the Stadium Authority for any
purpose;
(b) Must not provide for recourse for monetary damages against
the Stadium Authority for any reason, including any actual or
alleged nonperformance by any person;
(c) Shall not give rise to any obligation or liability for monetary
damages of the Stadium Authority to any person, including the third
party or anyone purchasing a personal seat license or providing
financing based on personal seat licenses through such third party or
otherwise, but may, with the approval of the Baseball Stadium
Events Company, provide remedies against the Baseball Stadium
Events Company; and
(d) May allow for an action for specific performance against the
Stadium Authority.
Sec. 28. 1. The Board of Directors shall notify the Board of
County Commissioners if the Board of Directors has made the
determinations pursuant to paragraph (a) of subsection 1 of section
34 of this act, whereupon the Board of County Commissioners shall
create a sports and entertainment improvement district for the
purpose of assisting in the financing or refinancing of the Major
League Baseball stadium project. The sports and entertainment
improvement district must be:
(a) Located entirely within the County and outside the
boundaries of any incorporated city; and
(b) Include only the land on which the Major League Baseball
stadium project is or will be located and any surrounding or adjacent
properties necessary for the operation of the Major League Baseball
stadium project.
2. The Board of County Commissioners may from time to time
amend or modify the geographic boundaries of the sports and
entertainment improvement district by ordinance, but any such
amendment or modification:
(a) Must not impair any outstanding bonds or any revenues
pledged to their payment; or
(b) Exclude from the sports and entertainment improvement
district land on which the Major League Baseball stadium project is
or will be located or any surrounding or adjacent property necessary
for the operation of the Major League Baseball stadium project.
3. With respect to any parcel that is split by the boundary of the
sports and entertainment improvement district established pursuant
to this section, the County Treasurer or County Assessor shall
determine the apportionment of the proceeds of taxes collected
within such a parcel for the purposes of section 29 of this act. All
determinations of the County Treasurer or County Assessor
pursuant to this section shall be deemed to be conclusive, absent
fraud or a gross abuse of discretion.
Sec. 29. 1. The Board of County Commissioners shall, to
pay the principal of and interest on bonds issued by the County
pursuant to section 34 of this act and the Local Government
Securities Law, whether funded, refunded or otherwise, incurred by
the County to finance or refinance, in whole or in part, the Major
League Baseball stadium project and to pay for other amounts
described in subsection 4 of section 32 of this act, pledge the
proceeds of:
(a) The taxes imposed pursuant to:
(1) NRS 372.105 and 372.185 with regard to tangible
personal property sold at retail, or stored, used or otherwise
consumed, in the sports and entertainment improvement district
during a fiscal year.
(2) The Clark County Sales and Use Tax Act of 2005, with
regard to tangible personal property sold at retail, or stored, used or
otherwise consumed, in the sports and entertainment improvement
district during a fiscal year.
(3) The Clark County Crime Prevention Act of 2016, with
regard to tangible personal property sold at retail, or stored, used or
otherwise consumed, in the sports and entertainment improvement
district during a fiscal year.
(4) Chapter 377D of NRS, with regard to tangible personal
property sold at retail, or stored, used or otherwise consumed, in the
sports and entertainment improvement district during a fiscal year.
12 (5) NRS 374.110 and 374.111 or 374.190 and 374.191 with
regard to tangible personal property sold at retail, or stored, used or
otherwise consumed, in the sports and entertainment improvement
district during a fiscal year.
(6) Chapter 377 of NRS with regard to tangible personal
property sold at retail or stored, used or otherwise consumed, in the
sports and entertainment improvement district during a fiscal year.
(7) NRS 363A.130 or 363B.110 with regard to wages earned
by employees located within the sports and entertainment
improvement district during a fiscal year.
(8) NRS 680B.027 and 680B.030 with regard to insurance
premiums earned from policies on businesses or assets within the
sports and entertainment improvement district during a fiscal year.
(9) NRS 694C.450 with regard to insurance premiums earned
from policies on businesses or assets within the sports and
entertainment improvement district during a fiscal year.
(10) NRS 363C.200 with regard to gross revenues generated
within the sports and entertainment improvement district during a
fiscal year.
(11) NRS 368A.200 with regard to admission to any facility
where live entertainment is provided within the sports and
entertainment improvement district during a fiscal year.
(12) NRS 369.330 with regard to any liquor purchased or
otherwise consumed within the sports and entertainment
improvement district during a fiscal year.
(13) NRS 372B.140 with regard to fares charged for
transportation services for which the point of origin or the
destination is in the sports and entertainment improvement district.
(14) Chapter 361 of NRS with regard to personal property, as
defined in NRS 361.030, located in the sports and entertainment
improvement district during a fiscal year.
(b) The fee provided for in NRS 360.787 with regard to the
operating of a facility at which exhibitions are held within the sports
and entertainment improvement district during a fiscal year.
(c) A franchise fee imposed pursuant to chapter 354, 709 or 711
of NRS for the provision of electricity, gas telecommunications or
video services in the sports and entertainment improvement district.
(d) A business license fee imposed pursuant to chapter 354 of
NRS for a business located in the sports and entertainment
improvement district.
(e) With the approval of the Stadium Authority and the County,
any other taxes, fees and charges imposed at the time the sports and
entertainment improvement district is created or which are later
imposed by the County during the term of the development
agreement, lease agreement or non-relocation agreement entered
into pursuant to section 22 of this act, not including:
(1) Any tax, fee or charge that, if transferred to the baseball
stadium tax account, would violate the United States Constitution or
the Nevada Constitution;
(2) Any tax, fee or charge that is irrevocably pledged to the
repayment of a bond issued before the effective date of this act and
is not otherwise available to satisfy obligations of the County
pursuant to this section following the release of such tax, fee or
charge from such prior pledge;
(3) Any tax, fee or charge for services provided by any
publicly owned and operated utility; and
(4) Any ad valorem tax on real property exempted pursuant
to paragraph (c) of subsection 1 of section 33 of this act.
2. The provisions of this act must not be applied to modify,
directly or indirectly, any taxes levied or revenues pledged in such a
manner as to impair adversely any outstanding obligations of any
local government or the State, including, without limitation, bonds,
notes, medium-term financing, letters of credit and any other
financial obligation, until all such obligations have been discharged
in full or provision for their payment and redemption has been fully
made.
3. The Department of Taxation and the Division of Insurance
of the Department of Business and Industry may adopt regulations
regarding procedures for the identification and collection of the
taxes, fees and charges pledged pursuant to subsection 1 which the
Department is responsible for administering.
4. The state and each local government or other public body to
which taxes are paid shall provide commercially reasonable
procedures by which taxes, fees and charges that are paid by any
business operating in the sports and entertainment improvement
district are to be identified and segmented such that they can be
directed to the baseball stadium tax account and allocated in a
manner consistent with subsection 1 of section 32 of this act. All
persons and businesses operating in the sports and entertainment
improvement district shall be obligated to follow the established
commercially reasonable procedures.
5. For purposes of the taxes, fees and charges described in
subsection 1, the Major League Baseball team shall be considered
an employer within the sports and entertainment improvement
district and any tax, fee or charge imposed upon or passed-through
to the Major League Baseball team, the Major League Baseball
stadium project or any affiliated or unaffiliated business operating
within the sports and entertainment improvement district shall be
deemed to occur within the sport and entertainment district and
therefor inure to the benefit of the sports and entertainment
improvement district.
6. The pledge of all or a portion of the taxes, fees and charges
described in subsection 1 shall be deemed “pledged revenues” as
that term is defined in NRS 350.550 and as that term is used in
NRS 350.580.
7. Following the adoption of an ordinance creating a sports and
entertainment improvement district pursuant to section 28 of this
act, the Board of County Commissioners, the Department of
Taxation and the Division of Insurance of the Department of
Business and Industry shall enter into an agreement establishing the
procedures, including any deadlines, for the distribution to the
County of any money pledged pursuant to this section. Such
distributions:
(a) Must be made not less frequently than once each calendar
quarter; and
(b) Must:
(1) Cease with respect to 90 percent of the taxes, fees and
charges collected in a fiscal year commencing in the fiscal year
immediately following the later of:
(I) The end of the fiscal year in which the 30th
anniversary of the County’s issuance of any bonds pursuant to
section 34 of this act and the Local Government Securities Law
occurs;
(II) The date on which any bonds issued by the County
pursuant to section 34 of this act and the Local Government
Securities Law are fully repaid; or
(III) The date on which all refundable transferrable tax
credits have been repaid to the State pursuant to paragraph (d) of
subsection 8 of section 31 of this act.
(2) Continue after the dates set forth in subparagraph (1) with
respect to the remaining 10 percent of the taxes, fees and charges
collected in a fiscal year so long as the Major League stadium
project is owned by the Stadium Authority.
Sec. 30. 1. The State Treasurer shall provide a credit
enhancement of not less than 0.5 times the anticipated average
annual debt service for each fiscal year of the term of bonds issued
to finance the construction of the Major League Baseball stadium
project pursuant to section 34 of this act from funds appropriated for
the initial deposit or other funds available for that purpose. The
credit enhancement may take the form of a guarantee, insurance,
letter of credit or other financial instrument or structure, as
reasonably determined by the State Treasurer.
2. The term of any authorized credit enhancement provided
pursuant to subsection 1 shall be for a period equal to that of the
term of any bonds issued to finance the construction of the Major
League Baseball stadium project, including any refunding of those
bonds, as set forth in section 34 of this act and shall be backed by
the full faith and credit of the State.
3. The credit enhancement provided pursuant to subsection 1
17 may take the form of other financial assistance from the State
Infrastructure Bank, to the extent authorized by NRS 408.55061.
4. Notwithstanding the provisions of subsection 1, the form of
the credit enhancement utilized shall be subject to approval by the
Board of Directors of the Stadium Authority and the chief financial
officer of the County, neither of which shall unreasonably withhold
their approval of the form of credit enhancement proposed by the
State Treasurer.
5. To the extent the debt service coverage ratio on any bonds
issued to finance the construction of the Major League Baseball
stadium project pursuant to section 34 of this act:
(a) Exceeds 3.0 times the anticipated annual debt service for any
year of the term of such bonds, the State Treasurer may submit a
written request to the Board of Directors of the Stadium Authority
and the chief financial officer of the County to cease the provision
of the credit enhancement provided pursuant to subsection 1 by 50
percent.
(b) Exceeds 4.0 times the anticipated annual debt service for any
year of the term of such bonds, the State Treasurer may submit a
written request to the Stadium Authority Board and the chief
financial officer of the County to cease the provision of the credit
enhancement provided pursuant to subsection 1.
(c) Falls below 2.0 times the anticipated annual debt service for
any year of the term of such bonds, the State Treasurer shall
reinstate the credit enhancement using one or more of the sources of
funding specified in paragraph (b) of subsection 7, in an amount not
less than 50 percent of the debt service due on the bonds in each of
the next two successive fiscal years. Such reinstatement of the credit
enhancement shall not prohibit the State Treasurer from
subsequently making a written request to the Stadium Authority and
chief financial officer of the County for a reduction or cessation of
the credit enhancement pursuant to paragraphs (a) or (b), as
applicable, of this subsection.
6. Approval for any request made by the State Treasurer
pursuant to paragraph (a) or (b) of subsection 5 shall not be
unreasonably withheld by either the Board of Directors of the
Stadium Authority or the chief financial officer of the County.
7. The terms of any credit enhancement provided by the State
pursuant to subsection 1 must be set forth in an agreement entered
into by the Stadium Authority, the County and the State relating to
the financing of the Major League Baseball stadium project. Such an
agreement must contain notice and administrative terms with respect
to the credit enhancement as agreed to by the Stadium Authority, the
County and the State. A credit enhancement provided by the State
pursuant to subsection 1 may be pledged as additional security for
bonds or other securities issued pursuant to section 34 of this act and
must provide that:
(a) The State Treasurer shall deposit into a designated fund
securing such credit enhancement an amount of funds to secure the
obligations of the State under this section equal to 50 percent of the
debt service due on the bonds in each of the next two successive
fiscal years; and
(b) If the amount on deposit in the designated fund is drawn
upon to pay debt service on the bonds or if such amount is less than
the minimum required amount described in paragraph (a), the State
Treasurer shall gather funds sufficient to replenish the designated
fund to the minimum required amount from one or more of the
following sources:
(1) Unreserved fund balance in the general fund of the State;
(2) Funds on deposit in the Consolidated Bond Interest and
Redemption Fund pursuant to NRS 349.110;
(3) Funds on deposit in the Account to Stabilize the
Operation of the State Government in the State General Fund
pursuant to NRS 353.288;
(4) Legally available funds in the Nevada State Infrastructure
Bank Fund created by NRS 408.55073, including, without
limitation, from the proceeds of bonds, notes or other obligations
and appropriations made to the Nevada State Infrastructure Bank;
(5) Interest earned on amounts on deposit in the designated
fund securing such credit enhancement; and
(6) The amount of any Legislative appropriation to replenish
the designated fund to the minimum required amount.
8. Any draw upon the designated fund securing the credit
enhancement provided by the State under this section shall be
deemed a loan from such designated fund to the County which shall
be a special obligation of the County payable solely from moneys
deposited in the baseball stadium tax account and available to
reimburse the State pursuant to paragraph (d) of subsection 4 of
section 32 of this act. A failure to make payments of any amounts
due under the special obligation of the County because of any
insufficiency in the amount of money in the baseball stadium tax
account and available to reimburse the State pursuant to paragraph
(d) of subsection 4 of section 32 of this act to make those payments
shall be deemed not to constitute a default on the special obligation
of the County. Any such loan from the designated fund to the
County shall not be considered as a general obligation of the County
for any purpose, including, without limitation, when determining
any limit on the debt of the County, and if there are insufficient
funds pursuant to section 32 of this act to repay the State, the State
Treasurer shall not withhold the payments of any other money that
would otherwise be distributed to the County from any source.
9. Moneys deposited by the State Treasurer into the designated
fund pursuant to paragraph (c) of subsection 5 and subsection 7 are
a continuing appropriation solely for the purpose of authorizing the
expenditure of the transferred money for the purposes set forth in
this section.
Sec. 31. 1. On behalf of a qualified project, the developer
partner in such qualified project may apply to the Stadium Authority
for a certificate of eligibility for transferable tax credits which may
be applied to:
(a) Any tax imposed by chapters 363A and 363B of NRS, other
than taxes imposed pursuant to NRS 363A.130 and 363B.110 with
regard to the wages earned by employees located within the sports
and entertainment improvement district;
(b) The gaming license fees imposed by the provisions of
32 NRS 463.370;
(c) Any tax imposed by chapter 680B of NRS, other than taxes
imposed pursuant to NRS 680B.027 and 680B.030 with regard to
insurance premiums earned from policies on business or assets
within the sports and entertainment improvement district; or
(d) Any combination of the fees and taxes described in
subparagraphs (a), (b) and (c).
2. For a project to be eligible for the transferable tax credits
described in paragraph (a), (b) or (c) of subsection 1:
(a) The project must be a qualified project;
(b) The Board of County Commissioners shall have issued
bonds to fund construction of the project pursuant to section 34 of
this act; and
(c) The developer partner must, on behalf of the project, submit
an application to the Stadium Authority demonstrating that the
requirements set forth in paragraphs (a) and (b) of this subsection
have been satisfied.
3. If the Stadium Authority receives an application pursuant to
subsection 2, the Stadium Authority shall approve such application
if the Stadium Authority finds that the project is a qualified project
and the requirements set forth in subsection 2 are otherwise
satisfied. The Stadium Authority shall issue a decision on the
application not later than 30 days after the Stadium Authority’s
receipt of such application that the Stadium Authority deems
complete.
4. If the Stadium Authority approves an application for a
certificate of eligibility for transferable tax credits submitted
pursuant to subsection 2, the Stadium Authority shall immediately
forward a copy of the certificate of eligibility which identifies the
estimated amount of the tax credits available pursuant to this section
to:
(a) The developer partner;
(b) The Department of Taxation; and
(c) The Nevada Gaming Control Board.
5. A qualified project may be approved for a certificate of
eligibility for transferable tax credits up to an aggregate maximum
amount equal to the difference between $380,000,000 and the
amount of the bonds issued by the County pursuant to section 34,
subject to the aggregate maximum limit on transferable tax credits
set forth in paragraph (b) of subsection 8.
6. For the purpose of computing the amount of transferable tax
credits for which a qualified project is eligible pursuant to
subsection 5, and subject to paragraph (f) of subsection 8, a
qualified project shall be entitled to transferable tax credits in an
amount equal to 20 percent of the total amount of transferable tax
credits available pursuant to subsection 5 per milestone upon the
achievement of each of the milestones listed below:
(a) The Board of County Commissioner shall have issued bonds
to fund construction of the qualified project pursuant to section 34
of this act;
(b) Monthly draws have been made in the aggregate amount of
not less than 33 percent of total project costs pursuant to the trust
agreement described in paragraph (c) of subsection 2 of section 33
of this act;
(c) Monthly draws have been made in the aggregate amount of
not less than 66 percent of total project costs pursuant to the trust
agreement described in paragraph (c) of subsection 2 of section 33
of this act;
(d) A certificate of occupancy or other governmental
authorization required in order to operate the qualified project has
been obtained within 36 months of the issuance by the Board of
County Commissioners of the bonds to fund construction of the
qualified project pursuant to section 34 of this act, as such 36-month
period may be extended:
(1) By the Board of Directors if the Board of Directors
determines that an extension of such period is necessary or
desirable; or
(2) As a result of force majeure as determined pursuant to the
development agreement; and
(e) The Major League Baseball team’s completion of its first full
season of home Major League Baseball games held at the qualifying
project.
7. Within 30 days of achieving any of the milestones described
in subsection 6, the developer partner shall provide written notice to
the Stadium Authority describing the milestone that has been
achieved and setting forth the developer partner’s irrevocable
declaration of the amount of transferable tax credits that will be
applied to each fee or tax set forth in paragraphs (a), (b) and (c) of
subsection 1, thereby accounting for all of the credits which will be
issued with respect to the relevant milestone. Upon receipt of such
written notice and accompanying declaration and the Stadium
Authority’s confirmation that the relevant milestone has been
achieved, the Stadium Authority shall issue to the developer partner
a certificate of transferable tax credits in the amount approved by
the Stadium Authority for the fees or taxes included in the
declaration. The Stadium Authority shall notify the Department of
Taxation and the Nevada Gaming Control Board of all transferable
tax credits issued, segregated by each fee or tax set forth in
paragraphs (a), (b) and (c) of subsection 1, and the amount of any
transferable tax credits transferred.
8. Except as otherwise provided in this section:
(a) The Stadium Authority shall not approve an application for
transferable tax credits if approval of the application would cause
the total amount of transferable tax credits approved pursuant to this
section in any fiscal year to exceed $36,000,000.
(b) The total amount of transferable tax credits issued pursuant
to this section to all qualified projects in this State must not exceed
$180,000,000.
(c) If in any fiscal year the developer partner is entitled to an
amount of transferable tax credits in excess of the per-fiscal year
limitation set forth in paragraph (a), the amount of transferable tax
credits in excess of such per-fiscal year limitation to which the
developer partner is entitled must be carried forward and made
available for approval by the Stadium Authority during subsequent
fiscal years, subject to the aggregate cap on transferable tax credits
set forth in paragraph (b).
(d) If and to the extent that the total amount of transferrable tax
credits made available to a developer partner pursuant to subsection
5 exceeds $90,000,000, the amount of transferrable tax credits in
excess of $90,000,000 will be refunded to the State by the Stadium
Authority using money in the baseball stadium tax account pursuant
to subsection 4 of section 32 of this act.
(e) Each transferable tax credit issued pursuant to this section
expires 5 years after the date on which the transferable tax credit is
issued to the developer partner. A transferable tax credit issued
pursuant to this section may be transferred only once.
(f) The developer partner shall be required to pay to the State an
amount equal to the total amount of transferrable tax credits issued
to the developer partner pursuant to this section if a certificate of
occupancy or other governmental authorization required in order to
operate the qualified project has not been obtained within 60 months
of the issuance by the Board of County Commissioners of the bonds
to fund construction of the qualified project pursuant to section 32
of this act, or a longer period if the 60 month period is extended:
(1) By the Board of Directors upon a determination by the
Board of Directors that an extension of such period is necessary or
desirable; or
(2) As a result of force majeure as determined pursuant to the
development agreement.
Sec. 32. 1. After paying any amounts needed to pay any
principal, interest or other costs due in connection with any bonds or
securities issued to finance or refinance the Major League Baseball
stadium project and to establish a reserve fund to secure the
payment of such bonds, the County Treasurer shall transfer the
amounts pledged pursuant to section 29 of this act to the Stadium
Authority. The Stadium Authority shall deposit such proceeds into
the baseball stadium tax account created pursuant to section 19 of
this act.
2. Except as otherwise provided in subsection 3, before the
issuance of bonds pursuant to section 34 of this act, the Stadium
Authority shall use the money in the baseball stadium tax account
created pursuant to section 19 of this act only for one or more of the
following purposes:
(a) To pay all or part of the cost to acquire, construct, design,
entitle, lease, improve, equip, operate or maintain, or any
combination thereof, within the boundaries of the sports and
entertainment improvement district the Major League Baseball
stadium project.
(b) To establish a bond reserve fund and other reserves for the
payment of the principal of bonds issued pursuant to section 34 of
this act or of the sinking fund payments with respect to such bonds,
the purchase or redemption of such bonds, the payment of interest
on such bonds or the payment of any redemption premium required
to be paid when the bonds are redeemed before maturity.
(c) To pay the costs incurred by the Stadium Authority to carry
out the provisions of sections 18 to 35, inclusive, of this act in an
amount not to exceed $2,000,000.
3. The Stadium Authority shall not expend any proceeds of the
taxes, fees and charges described in section 29 of this act to pay any
costs to acquire, construct, design, entitle, lease, improve, equip,
operate or maintain, or any combination thereof, the Major League
Baseball stadium project unless:
(a) The costs are costs described in paragraph (c) of subsection
2; or
(b) The conditions set forth in paragraphs (a) to (d), inclusive, of
subsection 1 of section 22 of this act have been satisfied.
4. Except as otherwise provided in subsection 5, after the
issuance of bonds pursuant to section 34 of this act, the Stadium
Authority shall use money in the baseball stadium tax account
created pursuant to section 19 of this act only for the following uses:
(a) To pay the administrative costs of the Stadium Authority in
an amount not to exceed $1,000,000 each fiscal year, as adjusted
annually pursuant to subsection 7.
(b) From the proceeds remaining after the payments required by
paragraph (a), to supplement the cost of operating and maintaining
the Major League Baseball stadium project if the Board of Directors
determines such payments are necessary because the Baseball
Stadium Events Company has failed to perform or breached the
lease agreement entered into pursuant to subsection 3 of section 22
of this act or a combined development and lease agreement entered
into pursuant to subsection 4 of section 22 of this act.
(c) From the proceeds remaining after the payments required by
paragraphs (a) and (b), to create and make contributions to a debt
service reserve fund:
(1) Until the start of the fiscal year immediately following
the date on which a certificate of occupancy or other governmental
authorization required in order to operate the Major League Baseball
stadium project is issued or obtained, in an amount equal to such
remaining proceeds until the debt service reserve level on the bonds
or other securities issued pursuant to section 34 of this act is two
times the average annual debt service on such bonds or other
securities; and
(2) After such date, in an amount not to exceed $5,000,000
each fiscal year until the maximum debt service reserve level on the
bonds or other securities issued pursuant to section 34 of this act is
two times the average annual debt service on such bonds or other
securities.
(d) From the proceeds remaining after the payments required by
paragraphs (a), (b) and (c), to repay any amounts drawn under a
credit enhancement provided pursuant to section 30 of this act.
(e) From the proceeds remaining after the payments required by
paragraphs (a) to (d), inclusive, to replenish any draws on the debt
service reserve funds for the bonds in an amount equal to the total
aggregate amount of any such draws.
(f) From the proceeds remaining after the payments required by
paragraph (a) to (e), inclusive, and upon completion of the Major
League Baseball stadium project, to make contributions to the
baseball stadium capital projects fund created pursuant to section 19
of this act in an amount equal to at least $5,000,000 per fiscal year,
as adjusted annually pursuant to subsection 7.
(g) From the proceeds remaining after the payments required by
paragraphs (a) to (f), inclusive, to refund to the State any amount of
transferrable tax credits made available to a developer partner
pursuant to section 31 of this act in excess of $90,000,000.
(h) From the proceeds remaining after the payments required by
paragraphs (a) to (g), inclusive, and upon completion of the Major
League Baseball stadium project, to make contributions to the resort
corridor homelessness prevention and assistance fund in an amount
equal to at least $5,000,000 per fiscal year, as adjusted annually
pursuant to subsection 7.
(i) From the proceeds remaining after the payments required by
paragraphs (a) to (h), inclusive, to make payments to a fund to
provide early debt retirement in an amount determined by the
Stadium Authority, a fund to make capital improvements to the
Major League Baseball stadium project in an amount determined by
the Stadium Authority and, subject to the provisions of subsection
10, a fund to pay for any infrastructure the Stadium Authority
determines is required on or around the project, except that no
payment pursuant to this paragraph may violate any covenant made
in connection with bonds issued pursuant to section 34 of this act
and, if any payment would violate such a covenant, the amount of
the payment must be used for such purpose as specified in the
ordinance or other instrument under which the bond or other
security is issued.
5. Upon the later to occur of the dates set forth in subparagraph
(1) of paragraph (b) of subsection 7 of section 29 of this act, the
Stadium Authority may use an amount not to exceed 10 percent of
the proceeds of the taxes, fees and charges described in section 29 of
this act generated in a fiscal year:
(a) To pay the operating expenses of the Stadium Authority; and
(b) To pay for capital improvements to the Major League
Baseball stadium project in an amount determined by the Stadium
Authority and, subject to the provisions of subsection 10, any
infrastructure the Stadium Authority determines is required on or
around the Major League Baseball stadium project.
6. The proceeds of the taxes, fees and charges described in
section 29 of this act, less the amount otherwise allocated to the
Stadium Authority pursuant to subsection 5, shall be returned to the
taxing entity or other entity that collected such taxes, fees and
charges for use by such taxing entity or other entity in accordance
with law once:
(a) The bonds issued pursuant to section 34 of this act have been
fully repaid and retired; and
(b) All refundable transferrable tax credits issued pursuant to
section 31 of this act have been repaid to the State pursuant to
paragraph (d) of subsection 8 of section 31 of this act.
7. The monetary amounts specified in paragraphs (a), (f) and
(h) of subsection 4 must be adjusted for each fiscal year by adding
to the amount the product of the amount multiplied by the
percentage increase in the consumer price inflation index between
the calendar year ending on December 31, 2023, and the calendar
year immediately preceding the fiscal year for which the adjustment
is made.
8. Any debt service reserve fund described in this section to
secure the payment of bonds or securities issued pursuant to section
34 of this act must be held by the County or a trustee for the bonds.
The debt service reserve fund must be funded with cash and
investments permitted by the bond ordinance and NRS 355.170.
Interest on money in the debt service reserve fund must remain in
the fund and be used for the purposes for which the fund was
created. In addition to the uses of the debt service reserve fund in
paragraph (b) of subsection 2, money in the debt service reserve
fund may be:
(a) Allocated to pay the final years’ debt service on the bonds
secured by the reserve funds if the money in the fund is fully
sufficient to retire all outstanding bonds secured thereby;
(b) When all bonds or other securities issued pursuant to section
34 of this act and any special obligations of the County under
section 30 of this act are no longer outstanding, transferred to the
baseball stadium capital projects fund created pursuant to section 19
of this act; or
(c) A combination of the purposes set forth in paragraphs (a)
and (b).
9. Any allocation of money in the debt service reserve fund
pursuant to paragraph (a), (b) or (c) of subsection 8 requires the
approval of the Stadium Authority, except that the County may, in
its sole discretion, allocate money in the debt service reserve fund to
pay scheduled principal and interest payments on bonds or other
securities issued pursuant to section 34 of this act.
10. For purposes of determining the infrastructure required on
or around the Major League Baseball stadium project to be funded
as provided in paragraph (i) of subsection 4 and paragraph (b) of
subsection 5, upon completion of the Major League Baseball
stadium project and continuing each year thereafter, the County
shall provide to the Stadium Authority a list of infrastructure on or
around the Major League Baseball stadium project that the County
proposes to be funded as provided in paragraph (i) of subsection 4
and paragraph (b) of subsection 5. The Stadium Authority shall
consider such list when determining which infrastructure will be
funded as provided in paragraph (i) of subsection 4 and paragraph
(b) of subsection 5.
11. As used in this section, “consumer price inflation index”
means the Consumer Price Index for All Urban Consumers, U.S.
City Average, West Urban (All Items), as published by the Bureau
of Labor Statistics of the United States Department of Labor or, if
that index ceases to be published by the United States Department of
Labor, the published index that most closely resembles that index,
as determined by the Stadium Authority.
Sec. 33. 1. In addition to the requirements set forth in section
22 of this act, a development agreement, lease agreement or a
combined development agreement and lease agreement entered into
pursuant to section 22 of this act and any other agreement of any
kind entered into by the Stadium Authority with a developer partner,
the Baseball Stadium Events Company or the Major League
Baseball team, or any affiliate, subsidiary or entity related to such a
person, must provide that:
(a) The contribution of the Stadium Authority to the costs of
construction of the Major League Baseball stadium project,
excluding debt service on the bonds issued pursuant to section 34 of
this act and the proceeds from the sale, transfer or license of
personal seat licenses, stadium builder’s licenses or other similar
instruments pursuant to section 27 of this act and the sale of other
assets of the project which must be used to pay the costs of the
project and capital improvements thereto and including the
transferrable tax credits described in section 31 of this act, must not
exceed the lesser of:
1 (1) The amount of $380,000,000; or
(2) The amount of money generated and contributed to the
construction fund by the taxes, fees and charges described in section
29 of this act before the issuance of bonds pursuant to section 34 of
this act, plus the amount of $25,000,000 as provided in subsection 3
and the maximum amount that may be raised and contributed to the
construction fund from the issuance of bonds and other securities
pursuant to section 34 of this act that are secured by the proceeds of
the taxes, fees and charges described in section 29 of this act, as
reasonably determined by the chief financial officer of the County
and the State Treasurer, after payment of issuance costs, including
capitalized interest, if applicable, and the cost of funding the debt
service reserve fund, plus the amount of transferrable tax credits
described in section 31 of this act.
(b) The total debt undertaken by the Board of County
Commissioners at the request of the Stadium Authority must not at
any time exceed the amount required to satisfy the amount set forth
in paragraph (a), minus:
(1) The amount generated by the taxes, fees and charges
described in section 29 of this act before the issuance of bonds
pursuant to section 34 of this act; and
(2) The amount of any transferrable tax credits described in
section 31 of this act.
⮩ Any bonds issued to refund bonds issued pursuant to section 34
of this act must not be taken into account in calculating compliance
with the debt limit set forth in this paragraph.
(c) Except as otherwise provided in this paragraph, all land,
improvements and other property of any kind included in the total
cost of the Major League Baseball stadium project pursuant to
paragraph (h) of subsection 1 of section 34 of this act shall be the
sole and exclusive property of the Stadium Authority and shall be
exempt from ad valorem property taxes in this State. The provisions
of this paragraph do not apply to:
(1) Any leasehold improvements that the Stadium Authority
and the Baseball Stadium Events Company or the Major League
Baseball team agree are made solely by the Stadium Events
Company or the Major League Baseball team; or
(2) Any personal property owned by the Major League
Baseball team.
⮩ If any such leasehold improvements remain in existence at the
expiration of the lease, such leasehold improvements must be
transferred to the Stadium Authority at the expiration of the lease
agreement and, at that time, becomes the sole and exclusive
property of the Stadium Authority, unless otherwise provided in an
agreement between the Stadium Authority and the Baseball Stadium
Events Company or the Major League Baseball team. The ad
valorem property tax exemption provided in this paragraph shall be
terminated if the Stadium Authority, or any successor governmental
entity, ceases to be the owner of the Major League Baseball stadium
project.
(d) A developer partner and the Major League Baseball team
must ensure that any required transfer of land, improvements or
property occurs before the issuance of bonds or other securities
pursuant to section 34 of this act or simultaneously with the
issuance of those bonds or other securities, provided, however, that
the Major League Baseball team may have the option to repurchase
the Major League Baseball stadium project at the end of the lease
period, including any extensions, at a cost reasonably determined
through a third-party appraisal obtained by the Board of Directors.
(e) The land on which the Major League Baseball stadium
project is to be located must be dedicated to the Stadium Authority
at no cost to the Stadium Authority before the issuance of bonds
pursuant to section 34 of this act or simultaneously with the
issuance of those bonds, provided, however, that the Major League
Baseball team may have the option to repurchase the Major League
Baseball stadium project at the end of the lease period, including
any extensions, at a cost reasonably determined by the Board of
Directors.
2. Except as otherwise provided in this act, the contribution of
the Stadium Authority to the cost of the development and
construction of the Major League Baseball stadium project must be
proportional in terms of amount, contemporaneous in terms of
timing and similar in terms of risk profile to the contribution to the
cost of the development and construction of the project by the
developer partner and:
(a) The developer partner shall pay the initial $100,000,000 of
the costs of the Major League Baseball stadium project.
(b) Payments after the initial payment described in paragraph (a)
will be pro-rata based on the percentage of the total cost of the
project described in paragraph (h) of subsection 1 of section 34 of
this act to be paid from money derived from the proceeds of the
bonds issued pursuant to section 34 of this act and the taxes, fees
and charges described in section 29 of this act, excluding the
proceeds of the tax, fee or charge used to pay principal and interest
on the bonds issued pursuant to section 34 of this act, and the
proceeds generated from the transfer of the transferable tax credits
described in section 31 of this act, compared to the costs to be paid
from other sources, as adjusted to reflect that money derived from
the proceeds of the bonds issued pursuant to section 34 of this act
and the taxes, fees and charges described in section 29 of this act,
excluding the proceeds of the tax used to pay principal and interest
on the bonds issued pursuant to section 34 of this act, together with
the proceeds generated from the transfer of the transferable tax
credits described in section 31 of this act, will be used to pay the last
$50,000,000 of the cost of the project.
(c) The procedures for making monthly draws for the cost of the
project will be delineated in a trust agreement, which will ensure
that no money derived from the proceeds of the bonds issued
pursuant to section 34 of this act, the taxes, fees and charges
described in section 29 of this act and the proceeds generated from
the transfer of the transferable tax credits described in section 31 of
this act are expended unless money of the developer partner is
simultaneously expended and that no funds of the developer partner
are expended unless money derived from the proceeds of the bonds
issued pursuant to section 34 of this act, the taxes, fees and charges
described in section 29 of this act and the proceeds generated from
the transfer of the transferable tax credits described in section 31 of
this act are simultaneously expended, except for the initial payment
described in paragraph (a) and the last payment described in
paragraph (b).
(d) A trust agreement governing the draw of money for the costs
of the project will detail the evidence required to be provided before
a draw can be made and the requirements for an independent
engineer to review all work before the draw of money.
(e) The independent engineer described in paragraph (d) will
review the project sources and uses of money each month and, if the
independent engineer determines that there is a need for additional
money for the project because of a cost overrun, no payment may be
made from money derived from the proceeds of the bonds issued
pursuant to section 34 of this act or the taxes, fees and charges
described in section 29 of this act until the cost overrun is paid from
a source or combination of sources described in subparagraphs (1)
to (3), inclusive, of paragraph (f) of subsection 1 of section 34 of
this act.
3. Any development agreement entered into between the
development partner and the County or any municipality in which
the project is located, including, without limitation, any agreement
required to be entered into with a local government pursuant to
paragraph (h) of subsection 2 of section 22 of this act, shall provide
that the County or any other municipality in which the project is
located shall provide a credit in an amount not less than $25,000,000
for any costs, expenses or charges imposed upon, assessed to or
otherwise required to be incurred by the development partner as part
of such agreement.
Sec. 34. 1. The Board of Directors shall request that the
Board of County Commissioners issue bonds of the County
pursuant to subsection 2 if the Board of Directors determines that:
(a) The Stadium Authority has:
(1) Entered into a development agreement, a lease agreement
and a non-relocation agreement pursuant to subsections 2, 3 and 5 of
section 22 of this act or a combined development and lease
agreement pursuant to subsection 4 of section 22 of this act and a
non-relocation agreement pursuant to subsection 5 of section 22 of
this act; and
(2) Approved a community benefits agreement pursuant to
section 23 of this act.
(b) The proceeds of the taxes, fees and charges described in
section 29 of this act that will be pledged to the payment of the
bonds issued by the County pursuant to this section and the Local
Government Securities Law, when combined with any credit
enhancement provided by the State pursuant to section 30 of this
act, will reasonably generate sufficient revenue to meet or exceed
the debt service coverage ratio of 2.0 times the anticipated annual
debt service for each year of the term of the bonds.
(c) The Board of County Commissioners has enacted the
ordinance creating the sports and entertainment improvement
district and pledging the taxes, fees and charges described in section
29 of this act.
(d) The contract for the construction of the Major League
Baseball stadium project is a guaranteed maximum price contract
with a contingency amount of 10 percent of the estimated hard costs
of the Major League Baseball stadium project or such lesser
percentage as is determined to be adequate by the Board of
Directors but not less than 5 percent of the estimated hard costs of
Major League Baseball stadium project.
(e) The prime contractor for the construction of the Major
League Baseball stadium project has provided adequate security to
guarantee timely performance of the construction of the project and
liquidated damages related thereto.
(f) A developer partner has provided a financing commitment
that the Board of Directors finds is sufficient to pay the portion of
the estimated cost of the Major League Baseball stadium project that
is to be paid from sources other than money derived from the
proceeds of the bonds issued pursuant to this section, plus the
contingency amount approved by the Board pursuant to paragraph
(d), and is secured by any combination of the following:
(1) An irrevocable deposit of cash into a stadium project
construction fund held in trust by a commercial bank with trust
powers, which is established by a developer partner and the Stadium
Authority and which cannot be used for any purpose other than
payment of the cost of the project until those costs have been paid in
full.
(2) Closed construction debt financing, from a lender or
lenders rated “BBB+” or better by Standard and Poor’s Rating
Services or “Baa1” or better by Moody’s Investor Services, Inc., or
their equivalent as determined by the Board of Directors, which
allows draws for the costs of construction of the project, interest
during construction and any costs of issuance. A draw under the
closed construction debt financing may be subject to conditions
precedent, including, without limitation, a condition that there has
been delivery of proof of the availability of County money, a
condition that there has been delivery of satisfactory reports from an
independent engineer that certifies work being paid for under the
closed construction debt financing has been completed and that
stored materials have been verified, any condition required by state
or federal regulations or regulators governing banks and any
condition that relates to confirmation of insurance for the project.
Such conditions precedent may also be required by the Board of
County Commissioners or the Stadium Authority to allow a draw on
the proceeds of the bonds issued pursuant to this section which are
held in trust by a commercial bank with trust powers.
(3) Irrevocable letters of credit or commitments to pay the
costs of construction of the project, which irrevocably and
unconditionally allow draws for the costs of construction of the
project and no other purpose until those costs have been paid in full,
which is provided by a bank with at least $1 billion in assets that is
rated “BBB+” or better by Standard and Poor’s Rating Services or
“Baa1” or better by Moody’s Investor Services, Inc., or their
equivalent as determined by the Board of Directors.
(g) A developer partner and the required state or local
government counterparty have executed any development
agreements required by state or local governments relative to
providing adequate offsite infrastructure improvements for the
Major League Baseball stadium project.
(h) The Stadium Authority and a developer partner have agreed
on an estimate of the total cost of the Major League Baseball
stadium project.
2. Except as otherwise provided in subsection 3, upon the
request of the Board of Directors pursuant to subsection 1, the
Board of County Commissioners shall issue bonds of the County in
an amount that can be supported by the proceeds of the taxes, fees
and charges described in section 29 of this act, together, if
necessary, with the State credit enhancement described in section 30
of this act, while also meeting the debt service coverage ratio
required pursuant to subsection 1. After payment of the costs of
issuing the bonds and making provisions for any required debt
service reserve fund, the proceeds of any bonds issued pursuant to
this subsection must be allocated to the Stadium Authority to be
used for the Major League Baseball stadium project.
3. The Board of County Commissioners shall not issue bonds
pursuant to subsection 2 unless the Board of County Commissioners
finds that:
(a) The requirements of subsection 1 have been satisfied; and
(b) Payment of the costs of construction of the Major League
Baseball stadium project will be made over time by both the
Stadium Authority and a developer partner in accordance with
subsection 2 of section 33 of this act.
4. The securities required to be issued pursuant to this section
must be issued pursuant to the Local Government Securities Law,
and any bonds issued pursuant to this section may be refunded by
the County as provided in the Local Government Securities Law.
5. If the Board of County Commissioners issues bonds of the
County pursuant to subsection 2 and the Board of County
Commissioners has made the findings set forth in subsection 3:
(a) The bonds may be issued without complying with the
requirements of NRS 350.011 to 350.0165, inclusive, and 350.020,
pursuant to an ordinance of the Board of County Commissioners as
provided in the Local Government Securities Law, and no other
approval by a governmental entity or otherwise is required for the
issuance of the bonds under the laws of this State.
(b) The bonds are exempt from the limitation on indebtedness
set forth in NRS 244A.059, and must not be included in the
calculation of the indebtedness of the County under that section, but
the County shall not become indebted by the issuance of the bonds
for the purposes set forth in sections 18 to 35, inclusive, of this act
in an amount exceeding 5 percent of the total last assessed valuation
of taxable property of the County.
(c) The bonds must be treated as if the finding described in
subparagraph (1) of paragraph (b) of subsection 3 of NRS 361.4727
had been made by the Board of County Commissioners and
approved by the debt management commission of the County under
subparagraph (2) of paragraph (b) of subsection 3 of NRS 361.4727.
6. Any determination or finding by the Board of Directors or
the Board of County Commissioners pursuant to this section is
conclusive, absent fraud.
7. The Board of County Commissioners shall notify the
Department of Taxation following the repayment in full of bonds
issued by the County pursuant to this section.
Sec. 35. 1. The authority of the Board of Directors to
undertake the Major League Baseball stadium project shall expire if
the Board makes any of the following determinations:
(a) Within 12 months after the effective date of sections 18 to
35, inclusive, of this act or, if the Board determines that an
extension of this period is necessary or desirable, within 18 months
after the effective date of those sections, Major League Baseball has
not authorized the Major League Baseball team to locate or relocate
within the sports and entertainment improvement district.
(b) Within 12 months after the effective date of sections 18 to
35, inclusive, of this act or, if the Board determines that an
extension of this period is necessary or desirable, within 18 months
after the effective date of those sections, the Major League Baseball
team has not committed to locate or relocate within the sports and
entertainment improvement district.
(c) Within 18 months after the effective date of sections 18 to
35, the Stadium Authority has not approved and entered into a
development agreement pursuant to subsection 2 of section 22 of
this act.
(d) Within 18 months after Major League Baseball has
authorized the Major League Baseball team to locate or relocate
within the sports and entertainment improvement district, the
Stadium Authority has not approved and entered into a lease
agreement pursuant to subsection 3 of section 22 of this act.
(e) In lieu of the agreements described in paragraphs (c) and (d),
within 18 months after Major League Baseball has authorized the
Major League Baseball team to locate or relocate within the sports
and entertainment improvement district, the Stadium Authority has
not approved and entered into a combined development and lease
agreement pursuant to subsection 4 of section 22 of this act.
(f) Within 18 months after Major League Baseball has
authorized the Major League Baseball team to locate or relocate
within the sports and entertainment improvement district, the
Stadium Authority has not:
(1) Approved and entered into a non-relocation agreement
pursuant to subsection 5 of section 22 of this act.
(2) Approved a community benefits agreement pursuant to
section 23 of this act.
2. Upon the expiration of the Board of Directors’ authority to
undertake the Major League Baseball stadium project pursuant to
this section, the proceeds of the taxes, fees and charges described in
section 29 of this act shall be returned to the taxing entity or other
entity that collected such taxes, fees and charges for use by such
taxing entity or other entity in accordance with law.
Sec. 36. Section 22 of the Southern Nevada Tourism
Improvements Act, being chapter 2, Statutes of Nevada 2016, 30th
Special Session, at page 20, is hereby amended to read as follows:
Sec. 22. 1. The Stadium Authority must be governed
by a Board of Directors consisting of the County Treasurer [,]
and State Treasurer, who [is a] are nonvoting, ex officio
[member] members of the Board, and nine members to be
appointed as follows:
(a) Three members appointed by the Governor, at least
one of which must be appointed in the manner set forth in
subsection 2.
(b) Three members appointed by the Board of County
Commissioners, at least one of which must be appointed in
the manner set forth in subsection 2.
(c) One member appointed by the President of the
University who must be the executive director in charge of
managing events for the University or, if that position ceases
to exist, another officer or employee of the University who
has experience in the management of events.
(d) Two members representing the public elected by the
members appointed pursuant to paragraphs (a), (b) and (c) [.
In electing members pursuant to this paragraph, the members
appointed pursuant to paragraphs (a), (b) and (c) shall
consider the recommendations of:
(1) A National Football League team that has:
(I) Demonstrated to those members that it is
interested in locating or relocating within the stadium district;
or
(II) Committed to locate or relocate within the
stadium district; and
(2) The person or persons who have:
(I) Demonstrated to those members that the person
or persons are interested in and capable of entering into a
lease with the Stadium Authority to operate the National
Football League stadium project; or
(II) Entered into such a lease.] and appointed in
the manner set forth in subsection 3.
2. One member appointed pursuant to paragraph (a) of
subsection 1 and one member appointed pursuant to
paragraph (b) of subsection 1 must be selected from a list of
nominees submitted to the appointing authority by the two
companies who, either directly or through subsidiaries,
affiliates or any related entity under common control with the
companies, own or manage the businesses within the County,
which in the aggregate generate the greatest amount of taxes
on the rental of transient lodging in the County. If the
appointing authority reasonably determines that the nominees
on any such list of nominees submitted by a nominating
company are unacceptable, the companies must submit a new
list of nominees. If the appointing authority has determined
that no nominee on the first four lists of nominees offered by
a nominating company is acceptable, all additional
nominations for appointment to the Board must be made by
the association of resort hotels whose membership
collectively paid the greatest amount of taxes on the rental of
transient lodging to the Fund for the Promotion of Tourism
pursuant to paragraph (a) of subsection 1 of NRS 244.3354
and paragraph (a) of subsection 1 of NRS 268.0962 in the
fiscal year immediately preceding the fiscal year in which the
appointment is made and whose members include the two
nominating companies or could include those companies if
those companies chose to be members of that association. For
purposes of this subsection, “affiliate” includes any company
in which a nominating company owns fifty percent or more of
the ownership interests.
3. Except as otherwise provided in subsection 4 of
section 23 of this act, in electing members pursuant to
paragraph (d) of subsection 1, the members appointed
pursuant to paragraphs (a), (b) and (c) shall:
(a) For one of the two members, consider the
recommendations of:
(1) A National Football League team that has:
(I) Demonstrated to those members that it is
interested in locating or relocating within the stadium
district; or
(II) Committed to locate or relocate within the
stadium district; and
(2) The person or persons who have:
(I) Demonstrated to those members that the
person or persons are interested in and capable of entering
into a lease with the Stadium Authority to operate the
National Football League stadium project; or
(II) Entered into such a lease.
(b) For the other of the two members, consider the
recommendation of:
(1) A Major League Baseball team that has:
(I) Demonstrated to those members that it is
interested in locating or relocating within the sports and
entertainment improvement district created pursuant to
section 28 of the Southern Nevada Tourism Innovation Act;
or
(II) Committed to locate or relocate within that
district; and
(2) The person or persons who have:
(I) Demonstrated to those members that the
person or persons are interested in and capable of entering
into a lease with the Stadium Authority to operate the Major
League Baseball stadium project; or
(II) Entered into such a lease.
4. Each member of the Board of Directors must reside
within the stadium district and must:
(a) Have experience in the design, engineering and
construction of major commercial projects and estimating the
costs of the construction of major commercial projects;
(b) Have experience in the financing of capital projects in
this State;
(c) Have experience in the field of stadium, arena or event
management;
(d) Have experience in workforce development, training,
diversity or supplier engagement; or
(e) Be representatives of the private sector and have the
education, experience and skills necessary to effectively
execute the duties and responsibilities of a member of the
Board of Directors.
[4.] 5. A member of the Board of Directors may not be
employed by the same person as another member of the
Board or by an affiliate of such a person.
[5.] 6. A vacancy on the Board of Directors occurs
when a member:
(a) Dies or resigns; or
(b) Is removed, with or without cause, by the appointing
authority.
[6.] 7. A vacancy on the Board of Directors must be
filled for the remainder of the unexpired term in the same
manner as the original appointment pursuant to subsection 1.
[7.] 8. A member of the Board of Directors is not
entitled to receive any compensation for serving as a member
of the Board or as an officer or employee of the Stadium
Authority.
[8.] 9. The members of the Board of Directors are
public officers for the purposes of chapter 281A of NRS.
Sec. 37. Section 23 of the Southern Nevada Tourism
Improvements Act, being chapter 2, Statutes of Nevada 2016, 30th
Special Session, at page 21, is hereby amended to read as follows:
Sec. 23. 1. Not later than 30 days after the effective
date of sections 21 to 37, inclusive, of this act:
(a) The Governor shall appoint:
(1) One member of the Board of Directors pursuant to
paragraph (a) of subsection 1 of section 22 of this act to an
initial term that commences on the date of the appointment
and expires on December 31, 2018; and
(2) Two members of the Board of Directors pursuant
to paragraph (a) of subsection 1 of section 22 of this act to an
initial term that commences on the date of the appointment
and expires on December 31, 2019.
(b) The Board of County Commissioners shall appoint:
(1) One member of the Board of Directors pursuant to
paragraph (b) of subsection 1 of section 22 of this act to an
initial term that commences on the date of the appointment,
and expires on December 31, 2018; and
(2) Two members of the Board of Directors pursuant
to paragraph (b) of subsection 1 of section 22 of this act to an
initial term that commences on the date of the appointment,
and expires on December 31, 2019.
(c) The President of the University shall appoint the
member of the Board of Directors appointed pursuant to
paragraph (c) of subsection 1 of section 22 of this act.
2. Not later than 90 days after the organizational meeting
held pursuant to subsection 2 of section 24 of this act, the
members of the Board of Directors appointed pursuant to
paragraphs (a), (b) and (c) of subsection 1 shall elect:
(a) One member of the Board pursuant to paragraph (d) of
subsection 1 of section 22 of this act to an initial term that
commences on the date of his or her election, and expires on
December 31, 2018; and
(b) One member of the Board pursuant to paragraph (d) of
subsection 1 of section 22 of this act to an initial term that
commences on the date of his or her election, and expires on
December 31, 2019.
3. [After] Except as otherwise provided in this section,
after the initial terms, each member of the Board of Directors
must be appointed for a 4-year term that begins on the day
following the day on which the immediately preceding term
expires. A member of the Board of Directors may be
reappointed.
4. If the County issues bonds pursuant to section 34 of
the Southern Nevada Tourism Innovation Act, within 30
days of the date following the issuance of such bonds on
which a vacancy occurs in the membership of the Board of
Directors with respect to one of the two members described
in paragraph (d) of subsection 1 of section 22 of this act or
the term of one of the two members described in paragraph
(d) of subsection 1 of section 22 of this act expires, the
members of the Board of Directors appointed pursuant to
paragraphs (a), (b) and (c) of subsection 1 of section 22 of
this act shall elect a member of the Board pursuant to
paragraph (d) of subsection 1 of section 22 of this act to an
initial 4 year term that commences on the date of his or her
election. In electing a member pursuant to this subsection,
the members of the Board of Directors appointed pursuant
to paragraphs (a), (b) and (c) of subsection 1 of section 22
of this act shall comply with the provisions of paragraph (b)
of subsection 3 of section 22 of this act.
Sec. 38. There is hereby appropriated from the State General
Fund to the Nevada State Infrastructure Bank Fund the sum of
$25,000,000 for the credit enhancement described in section 30 of
this act.
Sec. 39. Notwithstanding the provisions of NRS 218D.430 and
218D.435, a committee may vote on this act before the expiration of
the period prescribed for the return of a fiscal note in NRS
218D.475. This section applies retroactively from and after May 24,
2023.
Sec. 40. 1. This section and sections 1 to 35, inclusive, of
this act become effective upon passage and approval.
2. Sections 36 and 37 of this act become effective on the date
that the Board of Directors of the Clark County Stadium Authority
determines that Major League Baseball has authorized a Major
League Baseball team to locate or relocate within the sports and
entertainment improvement district created pursuant to section 28 of
this act and that a Major League Baseball team has committed to
locate or relocate within the sports and entertainment improvement
district.
3. Section 38 of this act becomes effective on July 1, 2024.