Henderson arena construction could generate $142M in economic output

Construction on a proposed minor league hockey arena in Henderson is estimated to generate more than $140 million in economic output, according to an analysis released by the city.

The study found construction of the project would create about 1,000 person-years of employment (the equivalent of 1,000 full-time jobs in a one-year period) and generate nearly $55 million in pay.

Prominent market research firm Applied Analysis conducted the analysis for the city.

If the City Council approves the project, the arena would replace the Henderson Pavilion at Green Valley and Paseo Verde parkways. The 6,000-seat arena would be home to the future American Hockey League affiliate of the Vegas Golden Knights.

Operations of the arena could generate a projected economic output of about $17 million to $26 million, according to the study. The arena could sustain 89 to 122 jobs, according to the study.

City officials have said the arena would host a variety of events in addition to hockey. However, the study notes that the proposed arena’s ability to outperform other Southern Nevada venues in events outside of minor league hockey “is a concern and remains somewhat speculative.” Henderson said the venue could host events such as graduations and performances by the Henderson Symphony Orchestra.

A vocal group of residents who oppose the project have criticized the city for wanting to move forward with an arena during a time of economic uncertainty. The city has said the project would help the city in its recovery from the coronavirus outbreak.

Those residents also took issue with a survey that found city residents favored the development, saying neighbors who live near the site were opposed. Hundreds turned out in a parade of vehicles to protest the development on May 2.

John Dalrymple, spokesman for the Henderson Coalition for Responsible Government, said his group is not anti-arena; members just don’t want it to be put at the pavilion site, he said.

Dalrymple said the coalition does not dispute the city’s economic impact numbers.

“I think those numbers would stand up at Galleria mall or west Henderson,” he said.

Assistant City Manager Robert Herr said Wednesday that it is premature to talk about the cost of the arena or how revenues from it would be distributed. Research firm Convention, Sports and Leisure estimated the cost of developing the project to be about $90 million, according to the study.

Henderson officials have said the pavilion is limited by being an open-air venue, and a new arena could provide year-round entertainment. A canopy that was removed entirely last year because of damage cannot be replaced, and the venue is facing issues with failing seats.

Contact Blake Apgar at bapgar@reviewjournal.com or 702-387-5298. Follow @blakeapgar on Twitter.

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