Source: Some Clark County officials concerned about baseball stadium bonds, property tax impact

LAS VEGAS, Nev. (FOX5) - Some Clark County officials have concerns over the Oakland A’s ability to pay their debt and generate tax revenue in a Las Vegas ballpark, which could affect property taxes for residents if revenue falls short.

This detail is according to a high-level source privy to talks among lawmakers for a ballpark at the site of the Tropicana hotel.

FOX5 told you how county-backed bonds could be used for a financing package. The concern lies with the ability to generate enough tax revenue to make timely payments, yet have enough funds to cover payments if revenue is not enough, the source said. The concern remains, regardless of the fund amount for a bond package.

A ballpark would have untested economic conditions, and GO bonds would require higher revenue coverage to ensure enough funds in the debt service reserves, the source said. A separate debt service reserve would be created for the ballpark. Money would start to flow into Clark County’s debt service reserve when the stadium opens.

If a borrower cannot make full payments, Clark County must pull from its debt service reserves. If debt service reserves run out, the county may be required to pull from the general fund or raise property taxes to make payments.

Clark County had to dip into its debt service reserves during the pandemic to pay for bonds for Allegiant Stadium. The bonds were funded by a room tax. Allegiant Stadium will have replenished its debt service reserve to $82 million by July.

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