Attorneys debated for over 90 minutes about whether lawmakers broke state law by creating a $380 million public financing deal to construct a baseball stadium for the Oakland Athletics in Las Vegas. Carson City District Court Judge Kristin Luis listened to arguments but did not make a decision during the hearing. Instead, Luis informed attorneys that she would issue a written decision on the matter and gave each side 10 days to submit their proposed rulings. Once she reviews the proposed rulings, Luis will make her final decision.
The challenge to the stadium funding was brought by Strong Public Schools Nevada, a political action committee connected to a state teachers union. Lawyers representing the Las Vegas Stadium Authority and the Legislative Council Bureau defended the legislation. The lawsuit revolves around a law passed during the Nevada Legislature’s special session last year that allocates up to $380 million in public financing through bonds and transferable tax credits to build a $1.5 billion baseball stadium in Las Vegas.
The Nevada State Education Association (NSEA) strongly opposes the legislation, arguing against using public funds for a private stadium deal. They claim that the benefits do not outweigh the costs to taxpayers, a sentiment shared by sports economists and studies. On the other hand, supporters believe that the project will create jobs, boost tourism, and generate revenue for the state.
The lawsuit filed in February by Strong Public Schools PAC challenges the constitutionality of SB1, stating that it violates the Nevada Constitution in various ways. The lawsuit claims that the law increases public revenue without the necessary two-thirds majority vote from legislators. The legal battle involves Republican Gov. Joe Lombardo and Democratic Treasurer Zach Conine and is the second legal issue the union has been involved in this year regarding the proposed stadium.
During the hearing, attorneys for the Las Vegas Stadium Authority and the Legislative Council Bureau argued that the plaintiffs lacked standing to bring the lawsuit since no public funds have been spent on the project. They stated that no harm has occurred that would warrant a legal challenge. Conversely, the PAC’s attorneys contended that the legislation poses a threat to public education funding and could potentially harm students.
The public financing for the stadium comprises $180 million in transferable tax credits, approximately $120 million in Clark County bonds, and a $25 million county credit for infrastructure. The bill outlines that the bonds will be repaid using revenues generated by the stadium. The Oakland Athletics plan to utilize $350 million of the approved financing, leaving $30 million for potential cost overruns.
Representatives of the A’s stated that they are confident in securing financing for the ballpark but did not provide specifics on how they will fund the majority of the construction costs. The team intends to borrow $300 million and is seeking equity investors to help cover a portion of the owner’s required $850 million investment for the stadium project. Sports financing company Galatioto Sports Partners has been enlisted to find investors for the endeavor.
