Is Allegiant Stadium Going to Make Money?
Once Again, Clark County had to dip into the debt reserve account to make Tuesday’s ( June 1, 2021) scheduled Allegiant Stadium bond payment.
Clark County pulled $11.7 million from the Las Vegas Stadium Authority’s debt reserve account to make the $18.6 million due, according to a Clark County spokesman. Officials were expecting to use the reserve account, as they did to make the Dec. 1, 2020 bond payment last year, pulling $11.6 million then, as there continues to be a shortfall in room tax revenue. Revenue toward the stadium bond payments is generated by a 0.88 percent tax on hotel rooms in Clark County.
Drawing on the Stadium Authority Bond Reserve fund does not constitute a default and was expected due to the decline in Las Vegas tourism.
The debt reserve fund was set up to be able to cover two full years of bond payments — $90.2 million — if there was a deficit in room tax revenue, as there is currently.
Funds for the debt reserve are derived from room tax revenue after the annual debt service on the bonds is paid. Up to $9 million can be deposited into the reserve each year until the two-year cap is met.
Bonds sold to pay the public’s $750 million share of Allegiant’s construction cost have been accruing interest, and that interest will be transferred to the stadium authority once the public’s share is fully funded.