City of Henderson Agrees to Pay $42 Million for $84 Million Event Center Arena That Will House VGK’s Minor League Team
By Alan Snel of LVSportsBiz.com
The city of Henderson plans to spend $42 million for an $84 million arena public-private project to rehab the Henderson Pavilion into a 6,000-seat Henderson Event Center to house a minor league hockey team owned by the NHL Vegas Golden Knights.
The city council approved the 50-50 partnership and 20-year lease deal with the Golden Knights to build the Henderson Event Center for the VGK’s new American Hockey League team. Many people believe the minor league team will be called the Silver Knights. VGK owner Bill Foley bought the former San Antonio Rampage AHL team, with the purchase deal announced in February. The team said minor league games in Henderson will be an affordable alternative to the costs of attending VGK games at T-Mobile Arena.
The approval process this year came rapidly. A month after the VGK announced it bought the AHL team, the city of Henderson held an information meeting March 9 and then a virtual info meeting May 6. And less than two weeks later after that virtual session, the council Tuesday approved the $84 million event center deal with the Golden Knights. The city said $25 million of its $42 million contribution to the event center project would come from a $60 million bond, which would also be used for other city projects. The Knights will pay $150,000 a year to the city as rent and also taxes on the venue because it would be on the tax roll.
Here are two graphics showing the elements behind the deal and how the city will pay for its contribution. The city of Henderson has argued that the pavilion venue needed improvements and that the city can save money by no longer having to maintain the Henderson Pavilion.
City of Henderson Chief Infrastructure Officer/Assistant City Manager Rob Herr gave a presentation painting an upbeat picture of the pavilion/event center/hockey arena project at Green Valley Ranch Parkway and Paseo Verde Parkway.
He argued property values would be enhanced, not hurt, by the venue project. And he posted this graphic to try and prove his point.
Golden Knights team president Kerry Bubolz also said at the council meeting that the newly-built venue will “complement the neighborhood.”
But opponents to subsidizing the cost for the Knights’ minor league team arena in Green Valley Ranch were not too happy.
They wanted a different location for the 6,000-seat arena and also a public vote on the subsidy deal.
The Golden Knights are also building a training center and community ice rink facility in Henderson’s downtown area at Water Street and Atlantic Avenue where the minor league team will train. The city of Henderson is kicking in $10.75 million for that $25 million training center called Lifeguard Arena.
The NFL Las Vegas Raiders also built their headquarters in Henderson near the executive airport, with the city giving the Raiders a price break of $6 million on the land deal for the football team’s HQ.
Most comments read into the record at the meeting Tuesday morning opposed the hockey arena deal. One opponent called it a “major league ripoff” and another noted T-Mobile Arena — where the big league Knights play their games — was privately built by MGM Resorts International and Los Angeles-based Anschutz Entertainment Group. Others cited what they believe will be traffic problems, while some opponents don’t want their city subsidizing professional sports.
Some comments supported the arena deal, supporting the pavilion being converted into a 6,000-seat event center for minor league hockey and other events. Here are a few of the events.
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