Ernie
Registered User
- Aug 3, 2004
- 12,838
- 2,288
For the second time in six months, Nevada’s Clark County has to pull millions of dollars from reserve funds to meet a payment on the Las Vegas Raiders’ one-year-old stadium.
The county disclosed in regulatory filings that it will make an unscheduled draw of $11.7 million from one of the reserve funds backstopping the $645 million in bonds issued in 2018 that helped finance Allegiant Stadium. The county has a $16.1 million payment due on the bonds for June 1.
...
In November, municipal officials pulled out $11.6 million from reserves to meet the Dec. 1 semi-annual payment. Clark County dedicates a hotel tax of 0.88% around the famed Strip and 0.5% from hotels near the stadium to repay the bonds. Hotel occupancy is rebounding in the city but still fell 36% short of the 2019 level in March, according to data from the Las Vegas Convention and Visitors Bureau. While the county pledges to maintain a bond reserve of two times annual debt service payments, the drawdown isn’t a default—a specific action that gives bondholders legal recourse—under the terms they were issued.
Tourist tax won't cover stadium payments so the local government has to cover. I believe there are similar funding structures for some NHL stadiums?