The City of Henderson Wednesday released projected tax revenues, operational savings and return on investment tied to the redevelopment of the Henderson Pavilion as a year-round enclosed venue that, if approved, would become the home of the American Hockey League team affiliate of the Vegas Golden Knights, a venue for local performing arts organizations like the Henderson Symphony Orchestra, and a multi-purpose event center for concerts, festivals, theatrical arts and community functions of various kinds.
The projections are based on a total project cost of approximately $80 million, with up to an additional $4 million for contingencies, to be shared equally between the City of Henderson and an affiliate of the Vegas Golden Knights.
A recent analysis by Jim McIntosh, Chief Financial Officer, City of Henderson, determined that the City is expected to benefit from $40.9 million in projected savings and tax revenue generated over 20 years, which equals the life of the bonds issued to support the City’s contributions towards the project. The one-year return on investment to the City for the proposed Event Center is projected to be 106.57 percent based on matching investment from the Vegas Golden Knights, annual savings from no longer operating the Pavilion, and enhanced tax impacts created by economic benefits of the Center. It is expected the City will have recouped its original investment in the first year of the new Event Center and will benefit from a projected 6.57 percent savings and additional taxes generated by the development project.
A 52-page lease deal between the city and the Vegas Golden Knights group, known as SK Arena LLC, spells out a 20-year committment. There would be ten years of possible extensions. After the initial term is up, the city of Henderson would take full control of the facility. The city would also have the right to host 37 community events, while SK Arena LLC would be responsible for booking the remainder of open dates. They would also hold the rights to sell the name of the facility to an outside group. Construction on the 6,000 seat arena would begin this summer, with an opening date targeted for June 2022.
The city will vote on the lease agreement as well as construction bidding at a regularly scheduled meeting May 19.