The (#MLS2LV) Show Will Go On

Last month, we were treated to "visions of stadium splendor". All of a sudden, a Downtown soccer stadium became the magic elixir that could somehow catapult Las Vegas into nirvana...

Until reality set in. And then, all of a sudden, Las Vegas Mayor Carolyn Goodman's (I) MLS dreams came crashing down. Once independent experts started poking through the Cordish-Findlay stadium proposal, they found some nasty red alarms. So Mayor Goodman, Cordish, and Findlay announced a new plan.



But is the new plan enough to assuage Las Vegas City Council Members and Las Vegas residents who have been worried about the city being left with the short end of the stick while Cordish & Findlay laugh all the way to the bank (with all those taxpayer provided subsidies)?



Just might it... If it includes $250 million worth of "Downtown investment"?

Maybe. The Las Vegas City Council just voted 6-1 to grant another 2 month extension to Cordish & Findlay. Apparently, the promise to "enhance Symphony Park" is worth both $250 million and a 2 month extension.

However, this just takes us back to the fundamental question at hand. If Cordish can afford $250 million to "enhance Symphony Park", why are Cordish executives and Justin Findlay still demanding public subsidies? Oh, yes. That's right. Their "profit margins are too thin" without public funding.

Last we checked, Cordish & Findlay are still demanding a $3 million per year annual subsidy from the City of Las Vegas. And last we checked, Council Member Lois Tarkanian (D) has promised to vote against any stadium proposal involving any public subsidies.

So what's it going to be? Will Cordish & Findlay finally drop their demands for the City of Las Vegas to essentially pay them to build a soccer stadium on city land? Or will they try yet another scheme to try to flip Council Member Tarkanian's vote? All we know now is that this show will go on to December.

Visions of Stadium Splendor

Uh oh. Maybe no goal?

In recent weeks, Las Vegas City Hall has been heating up as speculation has been ramping up over a proposed soccer stadium Downtown. Findlay Sports & Entertainment and The Cordish Companies have been hyping the cache of a prestigious sports stadium in the heart of "The Entertainment Capital of the World". Yet while they and Las Vegas Mayor Carolyn Goodman (I) have been hyping the razzle-dazzle of this stadium, others have been asking the tough questions. How many will actually attend games here? What are the real revenue projections? And how much will Las Vegas taxpayers have to pay for this?



Now, we know Cordish wants $3 million per year from the City of Las Vegas in addition to all the other subsidies Cordish & Findlay are demanding from city government (such as the ~$130 million they want the city to chip into stadium construction). That money would come from hotel tax revenues. Mayor Carolyn Goodman actually admitted it earlier this month on his show, even as she was claiming room tax revenue "isn't tax dollars, it's tourist dollars".

Last night, Las Vegas Council Member Lois Tarkanian (D) told Jon Ralston she would not vote for the Cordish-Findlay Stadium if the vote was today. She mentioned the issue of those hotel room tax revenues, and in particular how those room tax funds are used to maintain Las Vegas city parks. Council Members Bob Beers (R) and Bob Coffin (D) have already been sounding the alarms on this, and Tarkanian added that the city is just about to finish repaying bonds for parks in Northwest Las Vegas.



And the City of Las Vegas just recently raised user fees for youth sports leagues to use city parks. So how much will Las Vegas residents actually have to pay for this stadium?

Las Vegas isn't the only municipal company chasing after a MLS team. And when we look at the history other sports stadium subsidy deals, the outlook turns from merely very concerning to downright frightening.



Look, we're not against soccer. Far from it. And no, Mayor Goodman, we're not all just "naysayers". We're realists. And all we're asking for are the real numbers behind this stadium proposal.

We can see why Cordish won't talk to anyone and Findlay only agrees to "happy talk". However, Las Vegas city officials don't answer to Cordish and Findlay. They answer to Las Vegas residents. So they should not be afraid to drop the spin and start talking about the reality behind these visions of stadium splendor.

Unspinning (Chris Milam's Henderson) #StadiumGate

Well, that didn't take too long. The City of Henderson is now in negotiations to settle its law suit against Chris Milam over the disputed stadium project south of The M Resort.

City government spokesman Bud Cranor confirmed that settlement talks are being held.

“At this point, we do not have an agreement,” he said.

An attorney for Milam did not immediately return a call Monday seeking comment.

Milam laid out plans for an indoor arena and three stadiums in Henderson for his proposed Las Vegas National Sports Complex, though no teams have committed to the facilities. The complex was expected to cost more than $1 billion.

In late January, City Hall sued Milam and several others working with him on the project. They were accused of using a city-approved development pact to buy the 480-acre project site at a cheap price, about $10.5 million, and then sell it “piecemeal” to residential and commercial developers.

Last Wednesday at the Henderson Democratic Club's candidates' night, Mayor Andy Hafen talked about the city's desire to build a major league sports stadium on that land south of The M Resort. He ardently believes it's the right place. It's close to The 15, yet it's currently BLM managed open desert. There are no worries about eminent domain, traffic redirection, or any of the other, more urban concerns of the other stadium proposals (Caesars, UNLV, Downtown Las Vegas, etc.).

Perhaps this just hit at the wrong time. It certainly seemed to involve the wrong developer. Warning signs of Chris Milam appeared as early as 2011. That's why both the City of Las Vegas and Clark County respectively rejected Milam's stadium plans in 2011. It was only after those two municipal governments turned down Milam that he then struck a deal with Henderson to build that stadium on the open desert south of The M.

So it's not as if the City of Henderson is completely blameless in this debacle. Even Mayor Hafen himself has admitted the city went too fast in the past in pursuing development. I can understand he and others at Henderson City Hall think that open land is just ripe for stadium construction. They just need to make sure there's a viable plan and a trustworthy developer who can actually bring that plan to fruition. At least now, the city will be getting something for the many headaches created by this Milam scandal. And at least this debacle was stopped before it could truly cause mayhem.

Still, one can't let Milam off the hook for this. Chris Milam defrauded the City of Henderson by promising to build a stadium, then pulling out of the contract at the last minute to flip the land for residential development. Not only was Milam breaking his promise and using shaky legal ground to breach a contract, but he also could have caused real damage to the local real estate market by facilitating a glut of new houses just as the market has begun to absorb the over-supply of new homes from last decade.

While many media pundits have been pointing fingers at Henderson City Hall, we can't ignore the clear malfeasance on the part of Chris Milam. And we certainly shouldn't buy into his lawyers' spinning of him into some sort of "hero". It's easy for them to provide colorful quotes to the media. However, they seem to have a much harder time explaining what their client did and why he did it.

This isn't a simple, black & white kind of story. There are truly fifty shades of crazy here. Henderson has had to learn to do due diligence to ensure a deal is actually what its developer claims it to be. And Chris Milam will have to learn to take his phony baloney grandiose "ideas" elsewhere. No one may ultimately come out a winner here, but hopefully Henderson residents won't have to lose on this.

Henderson Mayor Andy Hafen @hendems

Last night at the Henderson Democratic Club, Henderson Mayor Andy Hafen took questions from the audience on the current state of the city. He first described what's going right...





Then he arrived at the Chris Milam stadium scandal. Someone was bound to ask him about it. And surely enough, several did.

Here's how Hafen handled it.







Since the case is now in court, there's only so much Hafen and other city officials can now say. Still, that didn't stop Hafen from saying he still wants some kind of stadium on that land just south of The M. He thinks that the vacant site surrounded by open desert offers limitless possibilities. After all, it can have its own exit off The 15. And it won't be encumbered by the kinds of traffic snarls and other limitations of the other stadium proposals in more densely developed urban areas (UNLV, MGM, Caesars, and Downtown Las Vegas).

However, the stadium controversy wasn't the only issue on voters' minds last night. There were also questions on development. In particular, someone from Anthem asked about traffic along Eastern Avenue. Hafen replied that the city initially made a mistake in designating only one point of entry into (and exit from) Anthem & Madeira Canyon in Eastern Avenue, but that's being fixed with the expansion of Volunteer Road to The M and the possible new 15 exit at Cactus Avenue.

Just as he said at the local house party last month, Mayor Hafen said that the last 25 years of epic development in Henderson (and Clark County overall) have been a significant learning experience. Over time, the city has figured out good practices... And not so good practices. And that has allowed Henderson city government to improve, become more efficient, and become wiser in planning future growth.

Even with the recent recession and stadium turmoil, Henderson still has the healthiest finances of all the municipal governments in Southern Nevada. And the city has been able to achieve this, and potentially return from deficit to surplus by next year, without creating the kind of strife with public servants that we've seen elsewhere in Southern Nevada. Mayor Hafen was especially proud of these two achievements. And he's hopeful his record at City Hall will secure reelection this spring.

We'll have to wait and see what voters decide.

Andy Hafen & the Big Picture of Henderson

Last night, I stopped by a neighborhood meeting. And this wasn't just any neighborhood meeting. Henderson Mayor Andy Hafen answered questions and talked about the current state of the city at this neighborhood house party.





Last night, Hafen pointed to the many achievements of the city in recent years in explaining how strong the state of the city actually is. Forbes has named Henderson one of the safest cities in America. Bloomberg Businessweek has named Henderson one of "America's 50 Best Cities". Henderson is often considered to be the best run municipal government in Southern Nevada.

So why have Ralston, Coolican, and especially the local "newspaper" been turning up the heat on City Hall lately? It has to do with the Chris Milam stadium scandal. In recent weeks, accusations of fraud (on Milam) and corruption (in the city) have been flying all around City Hall.

Last night, Hafen cleared the air and explained his side of the story. Basically, Milam promised Henderson a stadium. Henderson, in turn, signed onto an initial agreement to support Milam's bid for vacant BLM land just south of The M Resort on the condition that Milam builds a stadium on that land. But at the last minute, Milam terminated the agreement. And on top of that, he started marketing that land for residential development! And especially considering the full inventory of our local residential real estate market, that was considered the ultimate insult.

That's why Henderson filed suit against Milam. Yet despite this brouhaha, Andy Hafen said he'd still like to see a stadium built on that land. The city just has to make sure it finds a developer who will actually abide by one's word (and not try terminating a contract at the last minute).







There was also some talk about development overall last night. The entire Las Vegas Valley has been hit hard by the "real estate bubble" bursting. One can even go around Henderson and still find vacant offices & "blue taped" houses. Yet in the past year, there have been signs of recovery. And Mayor Hafen was introspective in discussing how the city can better manage future growth.

Yet with that being said, the entire group thanked Mayor Hafen and the city for its extensive and award winning parks, trails, & recreation center network. Mayor Hafen boasted of the city's many family friendly amenities. This is something that makes Henderson quite unique in Southern Nevada, since other municipalities have historically revolved more around gaming & adult entertainment. Hafen and the audience talked about how this has aided economic diversification and neighborhood stability here.

And then, there's sustainability. Henderson was the first municipal government in Southern Nevada to adopt a sustainability plan. All around town, one can find signs of it as old street lights have been replaced by energy efficient CFL lights, landscaping & xeriscaping have converged, LEED certified buildings have popped up, and recycling has continued to be expanded & innovated. Henderson has gone out of its way to become a greener place to call home.

And it didn't end there. Getting back to economic development, there was even talk about the state of public education in the city. It's helped that K-12 schools here are considered among the best in the valley. (And it probably helps there that Henderson has many of the most affluent neighborhoods in the valley.) The group also discussed the expansion of Nevada State College (NSC). NSC has aggressively pursued public-private partnerships, and it's been pursuing students who want a four-year college education in a more intimate and flexible environment. While the city doesn't have too much say over CCSD schools, it is making sure NSC continues growing and prospering.

And that finally brings us to the Nevada Legislature. Of course, Mayor Hafen was happy that the new higher education funding formula means a much larger revenue stream for NSC. In addition, Hafen hinted at the ongoing C-Tax fight in describing how the city gets money back from Carson City. All in all, Hafen seemed encouraged by what's developing in the Legislature now.

Overall, it's a complicated big picture for Henderson. The city has certainly taken some tough punches over the last five years from both "The Great Recession" and embarrassing incidents like the Kathleen Vermillion scandal, outbreaks of police brutality, & now the Chris Milam stadium controversy. Yet with all that being said, the city is still considered the best run in the state as it piles up prestigious awards, avoids the kind of ugly labor conflicts that have plagued both Clark County & the other major cities in the valley, opens new parks just as the above mentioned cities have threatened to close parks, and pursues new economic development opportunities. It hasn't always been easy for Henderson, yet the city has managed to avoid disaster.

And with this big picture behind him, Andy Hafen runs for reelection as Henderson Mayor. Believe it or not, he answered questions from residents for over two hours last night. He certainly had plenty to talk about. And he's hoping more residents see the opportunity and progress that he sees in that big picture.