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.
Photo credit: City of Henderson Powerpoint Presentation for May 19th meeting
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.
Photo credit: City of Henderson Virtual Town Hall on May 6th, 2020
Like it or not, the AHL is coming to Henderson and a 6,000 seat arena will be built on the site of the existing Henderson Pavilion. Many Henderson residents have voiced their opinions over the past few months since the project was announced. Yesterday, the City of Henderson conducted a “virtual town hall” in which they attempted to respond to as many of the concerns their citizens have over the project.
The two-hour town hall, which was hosted virtually using Cisco Webex, took on concerns over traffic, infrastructure, parking, job creation, timing, building operations, and a few more topics.
The most time was spent on traffic, an issue that was of major concern when the city hosted three consecutive public meetings back in March. The city’s presented solution was initially to build a tunnel to alleviate traffic coming and going from the arena, but that idea was nixed and now they believe any traffic congestion can be solved with the installation of new “adaptive” traffic lights.
An expert spent about 20 minutes explaining the benefits of the modern traffic lights that respond to traffic patterns in real-time.
Increasing people in the area drives an increase in traffic and congestion. The real solution to that is adaptive traffic signals which control the flow of traffic. The signals detect the presence of vehicles at the stop line and approaching the intersections. This system then allows progression through that road network. -Ian Machen, CEO of Ludian (traffic signal expert)
The other topic that took up the majority of the presentation was parking. A study showed that a 6,000 seat stadium would need about 1,200 to 1,400 on-site parking spaces to accommodate all attendees and arena employees.
They indicated that not only can they fit that number of spaces in the existing area, but they can do it without the construction of a multi-level parking structure and without disturbing the nearby library or multigenerational center.
Photo credit: City of Henderson Virtual Town Hall on May 6th, 2020
We looked at the event venue itself and the area around it as to what is the availability. We generally tested out the square footage and land area and determined that depending on landscaping and the configuration of the roadways that there is the feasibility in the planning level of obtaining 1,200 to 1,400 car spaces with the border of the site. -Ken Ackeret, Principal of Kimley Horn (parking expert)
In addition to the town hall, the city released an economic impact study conducted by Applied Analysis to show the job creation that will result from the construction of the arena.
The plan is to replace the current Henderson Pavilion with a state of the art hockey arena to serve as the permanent home of the AHL team The Creator recently purchased. The team was set to practice at the new facility being built on Water St., play at Orleans Arena for the next few years, and then move to the future arena on the corner of Green Valley and Paseo Verde.
Obviously, the shutdown of the league, and the world for that matter, caused by the coronavirus will present some challenges, but the issues go well beyond that in the eyes of many Henderson residents.
Stories recently published on KNPR and in the Review-Journal show Henderson and the Golden Knights appear to have different ideas than those who live and work in the arena.
Basically there were three meetings, they were hour-long meetings, exact same presentation. Packed packed meeting rooms and long lines to get to the next one… This wasn’t really a meeting in support of this hockey team and this new venue that would support it, these were people who seemed pretty concerned about this new venue in their neighborhood. -Mike Prevatt, KNPR
The issues range from minor to major with the minor ones surrounding traffic and parking while the major issue wondering about the way in which the city is going about making the arena a reality and how much of the money to pay for it is coming out of Henderson residents’ pockets.
Mayor Debra March has said Henderson would pay for half the building with up to $40 million in public money, but the city has since backed off that figure, saying the cost has not been determined. -Blake Apgar, LVRJ
The proposal is expected to be brought to the city council officially on May 19th according to the RJ.
Normally concerns voiced by the people end up holding little weight when it comes to the construction of arenas and the decisions to publicly finance them. However, the current state of the world is likely to at least throw a bit of a wrench into the works for the Golden Knights and their AHL plans.
What seemed like a slam dunk a few months ago may not look so clear when the question of spending $40 million on an arena comes up in a little over a month’s time.
Concerns of traffic, parking, and infrastructure, while probably all fair and valid now, will likely be answered as more plans are unveiled, but the financial aspect of the project will remain uncertain, to say the least.
Speaking at the Henderson “State of the City” address, Kerry Bubolz confirmed the location of the new arena for the AHL team.
We’re going to be building a brand new American Hockey League arena on the Pavilion site right here in Henderson. -Kerry Bubolz
The Henderson Pavilion is located on the corner of Paseo Verde Parkway and Green Valley Parkway, across the street from Green Valley Ranch Casino.
We’re looking to build this facility, it’ll be world-class, it’ll be 6,000 seats, it’ll be the perfect size for American Hockey league play. -Bubolz
Bubolz confirmed that the team has already taken over 5,300 refundable deposits for the AHL franchise yet to be officially named.
The Creator did give a slight hint to the name though.
Our AHL team name will include the name of this town, Henderson. -The Creator
The Golden Knights announced yesterday the new AHL will play its home games at Orleans Arena for the 2020-21 season. Our sources indicate that the plan is for the team to play there for two or three seasons while the new arena is being built.
The team name is expected to be Henderson Silver Knights, but it has not been finalized at this time.
We cannot let this pass without mentioning how insanely good Karlsson was on the forecheck in that OT. On the 2nd night of a B2B on the final day before the break, this man had so much more gas in the tank than every Isle.