A’s Las Vegas Ballpark Construction Expected To Take Major Step, Costs Rise To $1.75 Billion
Dec 4, 2024, 5:46 PM
LAS VEGAS, NEVADA - OCTOBER 09: A 555-drone and fireworks display by Fireworks by Grucci precedes the implosion of the 23-story Paradise (L) and Club hotel towers of the Tropicana Las Vegas on October 09, 2024 in Las Vegas, Nevada. The hotel-casino opened in 1957 and closed permanently in April 2024 to make way for a planned USD 1.5 billion, 33,000-seat domed stadium for Major League Baseball's Oakland Athletics and a related resort development by Bally's Corp. and Gaming and Leisure Properties Inc. MLB owners approved the team's relocation to Nevada in November 2023, and the A's hope to move into the ballpark, which will occupy nine acres of the 35-acre site, in 2028. (Photo by Ethan Miller/Getty Images)
(Photo by Ethan Miller/Getty Images)
LAS VEGAS (AP) — The Athletics’ move to southern Nevada is expected to take a major step forward Thursday when the 30-year lease, non-relocation and development documents are likely to be approved by the Las Vegas Stadium Authority following a rise in the estimated cost of the ballpark by $250 million to $1.75 billion.
Those agreements could be the last major hurdles before construction can begin in the spring on a Las Vegas Strip stadium projected to open for the start of the 2028 season, a ballpark in which under-seat cooling is planned.
The A's Las Vegas ballpark cost has ballooned to $1.75 billion—a quarter of a billion higher than estimates.
Owner John Fisher will have to dig into his own pocket for the higher costs as the public sector contribution toward the project is capped at $380 million.
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— Front Office Sports (@FOS) December 3, 2024
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, has maintained for several months those items would be approved and didn’t change his view this week. A backup meeting is scheduled for Dec. 12 in case the approval isn’t finalized Thursday, but Hill said he anticipated canceling that second session.
“Obviously, our board still has an opportunity to review everything and ask questions,” Hill said. “But we have been through drafts of all the outstanding documents at this point a number of times over a long period of time, and so I think the questions have been answered. I think we’re ready to approve.”
Nevada and Clark County are providing $380 million in public funds for a 30,000-seat domed stadium estimated to have a capacity of 33,000. Public financing doesn’t begin until the A’s have spent at least $100 million, and club executive Sandy Dean said this week the organization already has invested $40 million.
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Dean also said club owner John Fisher increased the previous pledge of his family’s money by $100 million to $1.1 billion. Dean said U.S. Bank and Goldman Sachs will offer a $300 million loan. Fisher still hopes to attract investors in Las Vegas and elsewhere who would purchase equity in the team, according to Dean.
Ballpark construction cost increased because of inflation and design changes that added 70,000 square feet.
“Adding amenities for fans and players, investing in the acoustics of the ballpark for concerts and insuring maximum fan comfort with under-seat cooling has been a rewarding part of the design process,” Dean wrote in an email.
Four letters will be presented to show that the financing is in place to build the ballpark even if Fisher doesn’t attract investors:
— A loan commitment from both banks.
— Fisher and his family have the ability to meet their financial pledge.
— U.S. Bank’s review of the owner’s finances backs up that Fisher has the money in place.
— The commitments to Athletics StadCo LLC, an entity created to handle the private capital investment.
RELATED: John Fisher Pledges $1 Billion Toward A’s Las Vegas Ballpark
This is the letter upon which the Las Vegas Sports Authority will rely in certifying the A’s have “adequate financial security for the performance of the financial obligations” for their new ballpark.
Estimated cost; $1.75 billion. A’s portion: $1.4 billion, plus cost overruns. pic.twitter.com/FoVOeXKECY
— Bill Shaikin (@BillShaikin) December 2, 2024
There are other issues that must be resolved before the stadium is finalized, including a development agreement with the county.
But if the Stadium Authority signs off on the documents, ground-breaking likely will be the next notable event.
The A’s will play at least the next three seasons at a minor league ballpark in West Sacramento, California. They recently played their last of 57 seasons in Oakland, California.
“It’s gratifying, but it’s important for Las Vegas,” Hill said. “Making sure that you get these types of deals done are important. The sports world, at least, is watching. There’s been a lot of speculation and a lot of poking at this, but bringing Major League Baseball to Las Vegas and bringing the A’s to Las Vegas and bringing a great venue like this to Las Vegas is just a great thing. Cities don’t get an opportunity to do this very often.”
