Report says UNLV stadium could add $400 million to local economy

If a new, privately financed stadium were built on UNLV's campus, it would generate hundreds of millions of dollars in spending elsewhere in town, according to a new economic impact study released Friday.

The proposed covered stadium, with seating for 55,000 to 60,000 people, would generate $393 million a year in direct spending in the Las Vegas area, the study predicts. The stadium would draw at least 15 new events to town, possibly including an NFL exhibition game, a new college football bowl game and the NCAA Final Four basketball tournament.

The study was produced by Mark Rosentraub and the University of Michigan Center for Sports Management. Rosentraub, who has worked on similar projects across the country, was hired to consult by the University of Nevada, Las Vegas.

"I see a project that's a game-changer for UNLV. It's a game-changer for our community," said Don Snyder, a former casino executive who is now the dean of UNLV's College of Hotel Administration. Snyder has been acting as the university's point man on the project, dubbed UNLV Now.

In addition to drawing outside events, the stadium would be used for UNLV football games, replacing the aging Sam Boyd Stadium, which is about eight miles from the campus.

Rosentraub has studied the effects of sports arenas on communities as an academic and author and has worked as a consultant in San Diego, Los Angeles, Indianapolis, Baltimore and elsewhere.

He was joined in producing the study by Guy Hobbs, a former Clark County budget director who is a managing partner in a local financial consulting company.

Hobbs was hired by the project's developer, Majestic Realty.

The project would include the stadium and what is being called a student village. That area would include student housing, thousands of parking spaces, and a retail shopping area. The project would take up much of the southwest corner of the 332-acre campus. Also included would be a refurbishing of the existing Thomas & Mack Center.

Students, faculty and community members spoke in support of the project Friday before the higher education system's Board of Regents. The board approved an update of UNLV's master plan, which includes the UNLV Now project.

The stadium and student village were first pitched by developer Majestic Realty in 2011. Craig Cavileer, Majestic's principal spokesman and president of the Silverton resort, said it was still unclear how much the project would cost. Rosentraub estimated a price tag of $800 million to $900 million. Majestic is expected to have an estimate ready by March.

Gerry Bomotti, UNLV's vice president of finance, said the plan calls for demolishing older campus housing and replacing it. UNLV, with about 28,000 students, has about 1,400 beds on campus for students.

The report also finds that construction of the stadium would generate $30 million in tax revenue for state and local governments. Once the center is built, governments would see $36.8 million in new tax revenue annually.

Rosentraub said he has warned communities considering stadiums not to be overly optimistic about how many events the stadiums could draw and how much economic impact they could have. He said the estimate he gave in his report was "extraordinarily conservative."

In response to questions from regents, Rosentraub said he created a database of every major event at every professional baseball and football stadium in the nation over the past 12 years. He said it was possible the new stadium could draw up to 20 events a year, but that his economic impact numbers were based on drawing 15 events.

The economic impact numbers are based only on new events, he said, not on events that would move from another local facility to the new one.

"This is not a substitution," he said. "This is not a transfer. This is new revenue. New spending that will occur if the facility is built."

He said Las Vegas is the only metropolitan area in the west without a large events center. He said the city is losing out on large events because of it.

"The events do not come to Las Vegas because Las Vegas does not have a facility to host them," he said.

Contact reporter Richard Lake at rlake@reviewjournal.com or 702-383-0307.