Breaking Down Bally’s, Oakland A’s, GLPI Agreement For Las Vegas Ballpark At Tropicana

Breaking Down Bally’s, Oakland A’s, Glpi Agreement For Las Vegas Ballpark At Tropicana

https://www.youtube.com/watch?v=LrH2cqlsL2w

Oakland News Online Blog – vlog by Zennie62 YouTube. OaklandNewsOnline.com is the original blog post for this content.

Breaking Down Bally’s, Oakland A’s, GLPI Agreement For Las Vegas Ballpark At Tropicana

The press release sent reads like this:

Bally’s Corporation (NYSE: BALY) today announced that, in
conjunction with Gaming & Leisure Properties, Inc. (“GLPI”), they have reached a binding agreement with the Oakland Athletics of Major League Baseball to site their new ballpark on a portion of the current Tropicana Las Vegas property. The ballpark is expected to welcome more than 2.5 million fans and visitors annually, and will be a one-of-a-kind asset for the Las Vegas Strip, providing a range of bene ts to the site including:
Substantial ballpark visitation materially enhancing future o erings within the development;
Signi cant exibility for an array of strategic options for the site, including the ability to develop in a phased approach with disciplined capital deployment;
Massive, unlocked potential for iconic, global brands to partner and market one of the busiest intersections in the country with over seven million impressions a month; Transformational impact for the evolution of Bally’s database further solidifying it’s global, omni-channel strategy; and GLPI has agreed to fund up to $175 million towards certain shared improvements within the future
development in exchange for a commensurate rent increase.
Bally’s and GLPI will assign approximately nine acres of the 35-acre site located on Las Vegas Boulevard and Tropicana Avenue to the Oakland Athletics or a related stadium authority. The new ballpark will accommodate
approximately 30,000 fans. This groundbreaking agreement is subject to the passing of legislation for public nancing and related agreements, and approval of relocation by Major League Baseball. As part of the agreement.

Bally’s retains the ability to assign the rights to all aspects of this development and has received material interest from development partners.

Bally’s President, George Papanier, said, “We are honored to have been selected to partner with the Oakland Athletics on this monumental step in helping to bring Major League Baseball to the great city of Las Vegas, and to be a part of the once in a generation opportunity of having a professional baseball team located within a short walk of the Las Vegas Strip. The Tropicana has been a landmark of Las Vegas for generations, and this development will enhance this iconic site for generations to come. We are committed to ensuring that the development and ballpark built in its place will become a new landmark, paying homage to the iconic history and global appeal of Las Vegas and its nearly 50 million visitors a year.”

Peter Carlino, Chairman and CEO of GLPI, said, “We have enjoyed getting to know the Oakland Athletics’ leadership through our dialogue over the past couple years. We are pleased to help facilitate their exciting vision for a new
ballpark through our contribution of nine acres of the Tropicana site and look forward to the prominent place that the overall project will occupy in the Las Vegas skyline. The Oakland Athletics’ interest in developing a world-class
Major League Baseball stadium on our site underscores its status as one of the most prime locations on the Las Vegas Strip and will enhance any future development of our remaining 26 acres. As the project moves forward, we
also expect that GLPI will have opportunities to further invest in the various aspects of the overall project to the extent we deem that doing so will generate an attractive risk adjusted return on our shareholders’ capital.”
Oakland A’s President Dave Kaval, said, “We are excited about the potential to bring Major League Baseball to this iconic location. We are thrilled to work alongside Bally’s and GLPI, and look forward to nalizing plans to bring the
Athletics to Southern Nevada.”
Bally’s acquired the building and operations of the Tropicana Las Vegas from GLPI in September 2022 as part of a $148 million transaction. As part of the transaction, Bally’s entered into a 50-year ground lease with GLPI, with the
ability to extend to 99-years upon achieving key investment milestones. Bally’s intends to continue the operations of the Tropicana Las Vegas for the foreseeable future while evaluating all available options for a broader redevelopment of the remainder of the site that will be adjacent to the new ballpark

We will break down what all of this means.

Stay tuned.

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Note from Oakland News Now Blog, Zennie62 YouTube, and Zennie62Media: this Oakland News Online Blog video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018, originally on Zennie62Media , Inc.’s Oakland News Now. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. This is what we call “The Third Wave of Media”. The uploaded video is from a “liked” YouTube video by a vlogger with the Zennie62 on YouTube Partner Channel, then that YouTube video is uploaded to and formatted automatically at the Oakland News Online Blog site and Zennie62Media -created and owned social media pages. The overall objective is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours. Now, news is reported with a smartphone: no heavy and expensive cameras or even a laptop are necessary, thus less chance for Oakland News Online Blog, Zennie62 YouTube vloggers to be robbed. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners. This process is entirely within YouTube terms of service, where embedding of videos for use on websites and platforms is allowed and encouraged.

Oakland A’s Las Vegas Ballpark Update: Stadium Will Be Publicly-Owned, Not Privately By A’s In LV

Oakland A’s Las Vegas Ballpark Update: Stadium Will Be Publicly Owned, Not Privately By A’s In Lv

https://www.youtube.com/watch?v=UvFFt0L8lVk

Oakland News Online Blog – vlog by Zennie62 YouTube. OaklandNewsOnline.com is the original blog post for this content.

Oakland A’s Las Vegas Ballpark Update: Stadium Will Be Publicly-Owned Not Privately By A’s

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The ballpark planned by The Athletics Investment Group in Las Vegas will be publicly-owned, and not privately-owned as proposed for Howard Terminal Ballpark in Oakland. That news comes from a confidential-as-to-origin Las Vegas ballpark project related information forwarded to Zennie62Media on the afternoon of Thursday, May 4th, 2023.

This means the financing structure for the A’s Las Vegas ballpark will be more like that for Las Vegas Stadium for the Raiders, now called Allegiant Stadium – except that it will not use a hotel tax, or any new tax. In other words, Clark County will issue the bonds, which will be in a kind of “multiple tax increment financing” structure. In other words, and to repeat, no new tax will be created to finance the ballpark for the A’s in Las Vegas.

Now, if you are familiar with tax increment financing law in California, you’re probably saying “Does that mean the A’s don’t pay a property tax?” The answer is that since the facility is publicly-owned, but for a private use, the Athletics would pay a “possessory interest” tax, and that revenue stream, combined with money gained from annual sales taxes, and other monies that make up what was described to me as a financing “layer-cake”. So, the other question from you should be “What about the tax rate that will take the place of the property tax?

The answer is, it is still a property tax, but for a government-owned building – one built for the Las Vegas Athletics. With that in mind, I was directed to information in a document called “The Nevada Red Book”. The online-based Nevada Red Book is a listing of property tax rates for the State of Nevada.

The actual rate the creators of the Las Vegas Athletics Ballpark Public Financing use will be a combination of several rates and points to the possible involvement of the Las Vegas Stadium Authority, but I haven’t confirmed that. I write that, because the Las Vegas Stadium Authority’s original legislation called for it to have tax increment financing power over a 25-mile-radius. From the information I gathered, using the Las Vegas Stadium Authority’s original legislative power may be part of the proposed legislation for the Oakland A’s Las Vegas Stadium.

If that comes to be the case, then the Athletics Investment Group no longer has to concern itself with building a lot of property just to gain a healthy tax increment. It’s likely that the “possessory interest” tax rate the A’s pay would be at 3.2396 percent, much greater than the 1 percent in California. Also, Nevada has a property tax annual inflation rate of 3 percent. The length of the bond issue – the number of years the law allows to collect revenue to pay its debt service – will be 30 years. In Oakland and California, it’s 45 years.

The TIF revenue will be $1,216,171,403 against $912,128,552.52 in bond costs (a difference of 289,140,211) and assuming that only the ballpark at $1.5 billion is used for the assessed value base year and the tax rate is 3.2396 percent, and, again, over 30 years. The objective is a target of a $550 million bond issue with a 3.5 percent annual rate over 30 years. That will produce an annual “level” (same each year) debt service of $29,904,232.

But a level debt service structure will not be used, otherwise, the stadium financing planners would have to wait 17 years until the tax increment revenue reached $31,336,686.35, or greater than the annual $29,904,232 (a total bond cost of $927,031,192). So, a non-level-debt service structure will be used, so that the first year debt service is lowest and the final year is highest, thus allowing the Athletics to start building the stadium before the first year of the life of the bond issue.

But the fact remains that with a two-to-one debt coverage ratio, the net revenue available would be $456,064,276.26 and that’s -$93,935,723.74 less than the $550 million bond issue target. So, it’s clear that more buildings than the ballpark itself are needed. So, a $500 million second structure would be necessary, which would bring the total assessed value here to $2 billion, the total TIF revenue to $608,085,701.68, and the net revenue available over the bond issue period to $58,085,701.68.

But, if we think about it, if the tax increment financing zone “map” is to be larger than the 49 acres the A’s have optioned, then the total available revenue from both possessory interest payments, and surrounding tax payments by exisitng properties within the zone will be much greater than $608,085,701.68. Just how much depends on the total assessed value of the properties within the zone. Just what that is, at this point, I do not know.

What The A’s Are Planning In Las Vegas Is Far Different Than What The Media Has Reported

What this means is the Las Vegas ballpark project is far larger and more representative of a public-private effort involving the Governor of Nevada than has been reported. At the end of the day, the project ownership will be the State of Nevada and possibilly the Las Vegas Stadium Authority. But the jokes about what people think Dave Kaval, John Fisher, and Major League Baseball have done, really sink to a very juvenile level. This is happening because a lot of people in Nevada, from the Governor of Nevada to pretty much everyone, and especially the Casino Industry, and also I think Raiders Owner Mark Davis (who may be playing a smoke-screen-role), wants this to happen (in fact, he’s said so).

Because of this, the idea that the project is going away after 34 days and the end of the 2023 Nevada Legislature term is not true. Far more than likely to happen is a call for a special session of the Nevada Legislature. This is serious, folks. And it’s important to add that the net TIF revenue could be used to help local education and transportation efforts in Clark County.

Oakland, and California, should take notes on what really is a giant business attraction effort that will transform Las Vegas into an entertainment metropolis for the 21st Century.

Stay tuned.

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Note from Oakland News Now Blog, Zennie62 YouTube, and Zennie62Media: this Oakland News Online Blog video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018, originally on Zennie62Media , Inc.’s Oakland News Now. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. This is what we call “The Third Wave of Media”. The uploaded video is from a search for YouTube video under “Oakland News” then that YouTube video is uploaded to and formatted automatically at the Oakland News Online Blog site and Zennie62Media -created and owned social media pages. The overall objective is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours. Now, news is reported with a smartphone: no heavy and expensive cameras or even a laptop are necessary, thus less chance for Oakland News Online Blog, Zennie62 YouTube vloggers to be robbed. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners. This process is entirely within YouTube terms of service, where embedding of videos for use on websites and platforms is allowed and encouraged.

Oakland’s Strong-Mayor Government Has Lost All Three Sports Teams: Warriors, Raiders, Oakland A’s.

Oakland’s Strong Mayor Government Has Lost All Three Sports Teams: Warriors, Raiders, Oakland A’s.

https://www.youtube.com/watch?v=Md_lKJSsIYM

Oakland News Online Blog – vlog by Zennie62 YouTube. OaklandNewsOnline.com is the original blog post for this content.

Oakland’s Strong-Mayor Government Has Lost All Three Sports Teams: Warriors, Raiders, Oakland A’s. Thanks, Jerry Brown.

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Note from Oakland News Now Blog, Zennie62 YouTube, and Zennie62Media: this Oakland News Online Blog video-blog post demonstrates the full and live operation of the latest updated version of an experimental Zennie62Media , Inc. mobile media video-blogging system network that was launched June 2018. This is a major part of Zennie62Media , Inc.’s new and innovative approach to the production of news media. This is what we call “The Third Wave of Media”. The uploaded video is from a vlogger with the Zennie62 on YouTube Partner Channel, then uploaded to and formatted automatically at the Oakland News Online Blog site and Zennie62Media -created and owned social media pages. The overall objective is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours. Now, news is reported with a smartphone: no heavy and expensive cameras or even a laptop are necessary, thus less chance for Oakland News Online Blog, Zennie62 YouTube vloggers to be robbed. The secondary objective is faster, and very inexpensive media content news production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and seeks interested content and media technology partners.

Why Oakland Is Behind With Howard Terminal Ballpark

Why Oakland Is Behind With Howard Terminal

Ok, here’s the totally, completely, unvarnished, hard, difficult truth why the City of Oakland is so far behind where it should be in helping the Oakland Athletics build a ballpark at Howard Terminal. The simple set of reasons I am about to roll out can be summed up in one word: over-politicization. That’s right: over-politicization.

Robert Bobb’s Downtown Ballpark Dream Dashed By Jerry Brown

The fact is the structure for Oakland’s bureaucratic slowness was formed with the passage of “Measure X”, then-Oakland Mayor Jerry Brown’s version of a long-sought-after form of government called Strong Mayor. Passed in 1998, it took effect in 1999, and matted Brown with a person who was every-bit his match on the city administrative side: then-City Manager Robert Bobb.

Mr. Bobb, who was trained in the traditional fashion of city managers, to, well, run a city, including it’s public-private-partnerships, and who wanted Oakland to “Host Super Bowls and build ballparks” as he said at an early February 1999 city staff meeting I attended (as the new city consultant who was Economic Advisor to the previous Mayor Elihu Harris) to plan for Oakland’s then-annual trip to Las Vegas for the International Council of Shopping Center’s Spring Convention.

As it turned out, Bobb’s dreams for Oakland clashed head-long with Brown’s in Bobb’s pursuit of a downtown ballpark for the Oakland A’s in 2002 (and after Bobb hired me to form a bid for Oakland to host the 2005 Super Bowl). Brown fired Bobb, who then was almost immediately snatched up by Washington DC, and successfully brought Major League Baseball there, along with a downtown ballpark. In short, Oakland’s version of strong mayor pushed out many a trained city-builder, and left in its place an organizational habit of elected officials using big projects to burnish their own images, and accomplish nothing in return by completing those big projects. The Oakland A’s quest for a ballpark home has been victimized by it. Indeed, Oakland’s version of strong mayor is why Oakland has lost almost all of its professional sports teams, is on a path toward losing the A’s, and has done nothing to try and replace any of them.

Ron Dellums Plays Political Games With Oakland’s Ballpark Dreams

In the case of the now-late Ron Dellums, the great congressman had the sad habit of playing ballpark advocates against each other, with one wanting a building at the Coliseum and the other at Howard Terminal, and both coming up short. Rather than one giant task force to determine what should be done, and one that should have been led by Oakland’s Economic Development Department, and a person who was trained at implementing large-scale projects, Dellums allowed many task forces to form, even one by the Oakland Chamber of Commerce, who’s job is to help the City of Oakland, and not lead it in a direction of its own making. But, to be sure, the person who’s face was on the entire affair was Oakland Mayor Ron Dellums, and no one else. Oakland Councilmember Larry Reid worked to try and carve out a larger role, but again, it was an example of an elected official’s hand being in the pot, and not a city-building city official. Then came Oakland Mayor Jean Quan.

Mayor Quan Doesn’t Let Fred Blackwell Be The Face of Oakland Sports Business Retention

Unlike Brown and Dellums, Mayor Quan smartly put Oakland Economic Development Director Fred Blackwell in charge of projects, including a new arena for the Warriors, a new stadium for the Raiders, and a new ballpark for the Oakland A’s.

Unfortunately, Quan and the Oakland City Council’s insistence on having themselves as the face of the efforts, led to bungled lease negotiations with the A’s and Alameda County, and the embarrassing idea that the financing fortunes of the planned Coliseum City were in the hands of the Prince of Dubai, rather than a complex financing plan typical of such large scale public-private partnerships. Then came Oakland Mayor Libby Schaaf.

Libby Schaaf’s Jerry Brown Playbook Fails As Raiders Leave Oakland

While Schaaf lost the services of Fred Blackwell (who was chased away by the forecast that his previous boss, Quan, was going to lose re-election and jumped over to San Francisco to run the San Francisco Foundation) Libby did have me to call on, and did so privately when she wanted to understand how to work with Raiders Owner Mark Davis. But during that call I also encouraged her to forms a task force and put Robert Bobb in charge of it – an idea that Libby strangely bristled at. Like her mentor and political supporter Jerry Brown, Libby clearly wanted to make herself, and not a cracker-jack city builder, the face of retaining sports in Oakland.

In an effort to get Libby off the idea of not having a specialist, in 2015, I tried to get her to talk to Piper Jaffray’s sports investment banking Managing Director Diane Paauwe, and my legendary UC Berkeley classmate and friend Kofi Bonner, who’s known for building Emeryville. Before that, I proved to Mayor Schaaf that the Oakland Raiders were working behind her back and planning a stadium in Southern California.

I even formed a spreadsheet-based plan to finance a new Raiders stadium using an innovative hotel-based-revenue stream that worked to get Mr. Davis the $400 million he said he needed for a stadium at the Coliseum, and got the backing of Oakland City Councilmember Rebecca Kaplan and then-Coliseum Boss Scott McKibben, as well as a six-person deal-team at Piper Jaffray. With all of that, Libby, perhaps starry-eyed by the players she was dealing with in NFL owners like Jed York, whom she struck up a friendship with, was content to go it alone.

It was that approach – and no task force of Oakland business and poltical leaders and city staff and consultants – that she took to her NFL meetings. It worked in New York for her first presentation in November of 2015, but fell flat in the second one at the 2016 NFL Meeting in Boca Raton. There, Libby’s lack of knowledge of stadium financing was obvious, and she, and Oakland’s effort, took a giant nose-dive.

But Libby never stopped playing Zorro, and when she elected to put a point-person in charge of the Raiders effort, selected her City Administrator Claudia Cappio, who one NFL representative commented was “nice, but clearly needed to be brought up to speed on a number of things.” Claudia was consistently puzzled by her role, and that led to NFL legend and would-be Raiders Stadium Developer Ronnie Lott waiting for her to complete a stadium spreadsheet she was weeks late getting to him. Claudia admitted to me she needed help; I offered, but Claudia never followed up with me.

Eventually, the Oakland Raiders got NFL approval to move to Las Vegas, but I believed Libby was going to throw a hail-mary, fly to Phoenix, bust-open the doors, and offer Mark Davis and the NFL Ownership a last-second-deal. I believed that because Libby called me that weekened and put me on watch for a letter she wanted me to help give out at the NFL meeting. I waited for her call, which came at 6 AM the morning of the meeting in Phoenix. And then it was clear there would be no Libby on a horse, let alone a plane, and no special deal – just a reciting of the “shovel-ready” Raiders stadium plan the NFL already rejected. The Raiders were approved to go to Sin City.

Did Libby have a task force of business leaders and city staff and consultants to review what went wrong? No. Was there any public introspection on her part? No. And so it should come as no surprise that Mayor Schaaf basically unfolded the same playbook and applied it to Howard Terminal? No. Because that’s what she did, but with a difference: an involved and engaged civic player in the Oakland Athletics, led by Dave Kaval, its President.

But because Libby was content to make herself the face of the A’s ballpark project, and then once-again tab people to help her more for reasons of putting on a political face than any real know-how, and one-again ignore forming a task force of business leaders and city staff and consultants, to get on the matter of building a ballpark either at Howard Terminal or the Coliseum. Libby let the A’s direct her, gave the organization indirect control over a significant part of Oakland’s waterfront, yet had no city staffers familiar with the kind of tax-increment finacing plans that I did for 37 years. Libby even admitted this to me on camera during a press conference in 2021, and has repeated that fact since what you’re about to see, below.

So, it is no surprise that Howard Terminal’s pre-development process has been piecemeal, with City of Oakland representatives attending community meetings, no task force, and no formation of a “Howard Terminal Public Authority” to formalize each step of the process toward ground-breaking, give a publicly-known database of meetings, reports, and updates, and plan and get Alameda County-backing for the use of tax increment financing.

So, it’s no surprise that the city’s timeline for Howard Terminal is not that, but a mess of press releases attacking this or that political criticism. And so it’s no surprise that on March 31st, 2021, Major League Baseball Commissioner Rob Manfred announced that the A’s were going to look at Las Vegas as an alternative. And it’s not a surprise that then, and only then, did Mayor Schaaf start the process of negotiations with Alameda County – an effort that should have started with the October 11th, 2019 California Assembly passage of SB293 Skinner, a version of California Enhanced Infrastructure Financing District legislation especially designed for the Howard Terminal Ballpark Project, and one that started with my suggestion to Mr. Kaval that he use tax increment financing. And it’s not a surprise that the A’s are on “parallel paths” even as the same Major League Baseball Commissioner Rob Manfred said that Las Vegas was the focus for a future home for the A’s and that they were “Done talking about Oakland.”

Mayor Sheng Thao Continues Libby Schaaf’s Jerry Brown Mistake

New Oakland Mayor Sheng Thao, like Libby Schaaf before her, is using herself as the political face for Howard Terminal and for Oakland’s sports business fortunes in the foreceable future. Mayor Thao’s the latest Oakland politician to get the fever that it’s all about her, and so the same playbook, and its failings, is being employed, yet again.

Oakland’s strong mayor system has created this problem of over-politicization, and Howard Terminal Ballpark is the latest casuality of it.

Stay tuned.

Talking Las Vegas Baseball, Oakland A’s, Howard Terminal, Live With John Katsilometes Of LRJ

https://www.youtube.com/watch?v=aYELoIcVaL0 Oakland News Online Blog – vlog by Zennie62 YouTube. OaklandNewsOnline.com is the original blog post for this content. Talking Las Vegas Baseball, Oakland A’s, Howard Terminal, Live With John Katsilometes Of Las Vegas Review Journal via IFTTT Note from Oakland News Now Blog, Zennie62 YouTube, and Zennie62Media: this Oakland News Online Blog video-blog post … Read more