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.