The City of Henderson and the Vegas Golden Knights are set to take the final step in approving the construction of a 6,000-seat arena to house the AHL franchise coming to Vegas/Henderson.
At the May 19th Henderson City Council meeting, the council will be presented with an agenda item to enter into a financial agreement between the city and SK Arena LLC, a limited liability company set up by the Vegas Golden Knights to build and operate the arena.
If approved, the agreement will call for each party to commit $40 million to the project plus an additional $2 million toward contingencies. That means the arena is expected to cost $80 million with the City of Henderson and the Vegas Golden Knights entering into an agreement to split the cost 50/50.
The city’s proposal includes $25 million to be taken from the $60 million bond that was approved on April 21st. The remaining money will be allocated from the Henderson redevelopment agency ($16 million) and from insurance proceeds ($1 million).
According to the proposed agreement, construction of the arena must begin no later than August 1st, 2020, and the AHL team is expected to play their home games in the arena for the 2022-23 season.
The lease calls for an annual rent of $150,000 with a 2% increase each year. The lease term is 20 years which means the rent will be around $218,000 in the final year.
All references to the Golden Knights portion of the agreement are listed as SK Arena LLC or SK Team LLC. These companies were filed by Golden Knights attorneys in November 2019 and June 2019 respectively.
As we’ve been reporting since the news broke that the AHL was coming to Henderson, the team name will be the Henderson Silver Knights. SK Arena and SK Team are just another set of clues hinting towards that name.
The construction agreement will be approved at the Henderson City Council’s May 19th meeting scheduled to begin at 10:30 am.
Laura Sanchez
The fight to stop this has increased dramatically.
The lease agreement for the Pavilion aka Event Center is for under market value. Market value is $3,315,000 per year and the City is leasing it for $150,000 per year.
We are paying half the cost to build it with an estimated cost not to exceed $84 million dollars.
No revenue sharing, only 37 community use days per year; farmers’ market gets to use the parking lot.
Tenant (the VGK) keeps all revenue from tickets, food and beverage.
Tenant may charge parking fees.
The City is absolutely the worst at negotiating with sports teams. First, they got suckered by a shyster named Chris Millam who promised them a sports complex in 2013. Then, they gave away valuable land to the Raiders. Now this.
Russ Morgan
Where did you get the “no revenue sharing” and “37 community use days per year” information? I haven’t seen that before. With the city putting up half the cost, I don’t see how they aren’t sharing in the revenue.
Cindy H
Please see the City of Henderson City Council agenda for May 19th.
Items NB-37 and NB-38
http://henderson.siretechnologies.com/sirepub/mtgviewer.aspx?meetid=2069&doctype=AGENDA
Mel
Well, we are paying $42M and Henderson will OWN the $84M arena.
Not a bad return on investment and can explain the favorable rental terms for 20 years.
"DOC"
The only comment I have on the building of the arena or anything related is: It’s GOING to happen! The point I would like to raise is concerning your comment that “we”, meaning sinbin I guess, has been reporting the name Silver KNIGHTS since the beginning. I coined this name ON the day the AHL coming was announced. (Now, did others say this name that day also? I don’t know, I hadn’t seen it anywhere. Perhaps the others actually saw it HERE after I said it)! This can be verified by Ken going back to comments of that day made here. Also, a few days later I coined the Silver SQUIRES, only because I thought having both teams called Knights might get confusing. So Ken, I’ll agree … WE have been calling them the Silver Knights, from the beginning!!!!!! 🙂
Noodle King
Hendo Silver Kings
Hendo Silver Kickazzers
Hendo Slightly Krookeds
Hendo Sly Kinds
Hendo Silly Krakens
"DOC"
Alright Pasta ….. Who’s the one on the Meds? Me or you!!!!!! 🙂
Noodle King
LOL!! Had to twist out a few other options. Hendo Sipping Koolaiders maybe…… 🙂
Russ Morgan
I am still hoping for Henderson Gila Monsters. Henderson Silver Knights will be confusing… most of us refer to the Golden Knights as the “Knights” now.
At any rate, I think this is going to be an amazing facility for Green Valley Ranch. As a GVR resident, I am disappointed in how useless the Pavilion is most of the year. This will be a much better use of such a prime location!
"DOC"
I agree on the Knights maybe being a confusion ….. That’s why I suggested Silver SQUIRES, seeing as how squires serve knights, like the AHL team would be doing for VGK.
Jpax
Golden Squires. Let’s the goalie masks, and colors work well together.
Cindy H
Why has Bill Foley changed his tune when he’s the recipient of bond funds?
Difference here is that the $42 million is from bonds will be general obligation bonds paid by the Henderson taxpayers unlike the Las Vegas bonds for Raiders Stadium that is paid for by the collection of a room tax.
Las Vegas is getting way more for their money (NFL team, UNLV football,..) for a less than 40% of the cost of the stadium.
https://www.cnbc.com/2017/12/22/las-vegas-hockey-team-owner-tax-dollars-are-better-spent-on-public-services.html
Robin Stites
This is ludicrous..we have no say, no vitual meeting will pass constitutional muster. representation.without input..and we pay and get nothing in return..
Tim
All I can say to the people that oppose the arena is Life’s a Bitch and then you Die.
Carolyn Jones
Another new twist in the Henderson official propaganda about a hockey arena has been revealed. The arena has been promoted as good for the surrounding restaurant business. Well folks, Bill Foley is building a 6,000 sq. ft. restaurant INSIDE the arena.
Kiss the hoped for windfall goodbye.
Josh
Because Park and NY NY don’t get super busy on game nights.