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Henderson arena plan moves forward on financing
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LAS VEGAS REVIEW-JOURNAL
Updated: Feb. 20, 2012 | 8:21 a.m.
A Chinese company and its banking partners have agreed to finance a $650 million arena at the proposed Las Vegas National Sports Center planned for the west side of Henderson, according to project spokeswoman Lee Haney.
But the $1.5 billion development is far from a slam dunk.
"This is definitely a major step in this process, but we still have a ways to go," Haney said.
China Security & Surveillance Technology is considered one of China's top manufacturers and distributors of security technology, but it has expanded its global reach in recent years. The company listed assets of $1.4 billion in a regulatory filing.
But the company also is named in a class-action lawsuit that was filed in July, alleging CEO Guoshen Tu and other company executives violated the Securities and Exchange Act of 1934.
According to allegations in the federal lawsuit filed in Delaware, Tu and the other defendants violated their fiduciary duty to shareholders when they sought to buy back shares at undervalued prices as the company moved to delist as a publicly traded corporation.
Sports complex developer Chris Milam, CEO of International Development Management, has experienced his own legal troubles. He lost a lawsuit filed in 2006 alleging fraud and breach of fiduciary duty in a failed $1.2 billion high-rise condominium project planned for Las Vegas Boulevard.
A $1.1 million judgment was entered against him. Milam appealed, and the Nevada Supreme Court agreed to hear the case.
In a report published in November, Haney said the high court's willingness to hear the appeal was a good sign.
"They must feel there was some information that either wasn't considered or wasn't in the initial case," she said.
China Security & Surveillance Technology would finance the 750,000-square-foot, 17,500-seat arena to NBAstandards, Haney said. The capacity is 2,500 seats fewer than Milam proposed when he made his pitch to the city.
Haney said Milam continues to pursue equity partners that would co-own professional teams.
"He's talking to several people, but it's all confidential," Haney said.
The arena could house a professional basketball team, but it appears doubtful the league would be the NBA.
"We have no plans to expand," said Tim Frank, an NBA vice president in charge of communications. Frank said the league is familiar with Milam but did not elaborate.
Haney said she was not at liberty to discuss what the relationship would be between China Security & Surveillance Technology and Milam.
"We're very excited about it," she said of the fast-moving deal. "We started talking the week between Christmas and New Year's, and now the memorandum of understanding is signed. Now we still have to go to contract."
Haney said the arena is on track for a late summer groundbreaking, but first Milam must acquire the land it would sit on. The federal Bureau of Land Management controls the 485-acre site near the M Resort east of Interstate 15.
In a letter sent to the BLM last year, the city supported the sale through the Southern Nevada Public Lands Act. Haney said that process continues.
"We hope to take possession by late summer," she said.
Even if the financing is in place by then, at least one city official thinks the timeline could be too ambitious.
"Late summer might be a little aggressive," said Dennis Porter, who oversees the project for the city.
He said a fall groundbreaking is possible, but the city still needs information from Milam's consultants.
"We have to do our due diligence, and that takes time," Porter said. "The land acquisition process takes time, and we're still waiting for the information we need."
He said one of the key pieces of information the city requires is a fiscal analysis. A firm has been hired to study whether the Las Vegas Valley could support the project. The study will focus on issues from ticket prices to concessions.
Porter said the city remains optimistic. "We see it as a positive, but we don't know that much about the (Chinese) company that's offered up the memorandum of understanding."
Another element that needs to be completed is the creation of a Tax Increment Area that would encompass the entire site.
Once that is done, the city and Milam will seek access to a special fund the Legislature created in 2005 to help spur economic development.
Sales Tax Anticipated Revenue bonds have been used on fewer than a handful of projects in the state with mixed results. A key requirement is that tourist dollars must represent at least 51 percent of the revenue generated. Up to 75 percent of sales tax generated by the site would go to the developer to pay off bondholders.
Haney said the Chinese company also would play a role in the arena's construction.
The city of Henderson stands behind the project in supporting Milam's efforts to build the arena, two stadiums -- one for soccer and one for football -- and a baseball park, but the city has made it clear local tax dollars would not be used.
At his Feb. 9 State of the City address, Mayor Andy Hafen said the city has "been very clear on our direction that no current revenues will be diverted, or new ones levied, to put taxpayers at risk for these projects."
Contact reporter Doug McMurdo at dmcmurdo@reviewjournal.com or 702-224-5512.
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CONFLICT OF INTEREST. Many politicians were caught.
correction ..... city mayor and Josh Snow had talks
Henderson needs to find a Police Chief very quickly. By March 1. City Manager will retire by May1. I read that our Mayor talked with Josh Snow. One person on that article praised Snow and stated he speaks Cantonese Chinese and he worked for mission in China and so he is the best person to be a City Manager. He did good job in one-son-only-in-one-family-other-new-born-to-be-killed China by promoting Mormon. However, Henderson is not in China. I was wondering how our city manager talked with Snow. Then I learned that City is negotiating with Chinese skim specialist organization. Henderson had a first female city manager, first female city attorney, first female police chief. It failed for first female,... So, I thought Mayor is looking for first Chinese speaking City Manager! He could use Snow to be gypped. Then I found Snow has been working for RTC. No wonder he hides his jobs in RTC. It seems that Mayor is not aware of the law that prohibit a cozy relationship between him and Snow? No wonder Snow's backer hid Snow's RTC experience. Snow is not a man. Phantom!
Iran offered very good food exchange plan. Mongolians eat Chinese style meal. Japanese introduce SAKE. Until 150 years, Japanese were vegetarians. Anyone who handle animals were called "four feet" and was outcastes (non human). Well, when Japan was modernized, winner people who toppled Shogun became new government heads. with their experience in recruitting all sort of people, they wanted to make everybody same. It became illegal samurais to kill non-samurais. But they had problems with four legs called people. Then their ninja friends who fought with them got an idea. since ninjas crawl underneath of houses, they are same as 'four legs'. So everybody became same. Then they found meats are tasty. Beside rice, they export a variety of meat to Mongolia. Original ramen is soft noode. Japan has more bride than mai-bride. so, dry ramen is created. Mongolian buy Top Ramen and other ramen either in Japan or Irvine, CA. With their climate, ramen is very popular. When they found there is no top ramen, no sake, no pork, no rice in trade list, they could not figure out why. They wanted stick to Japan. This is it for now. Japanese Shinto priests had memorial service all over in Japan. They prayed for all casualties. They haven't forgot Shinto is philosophy belief. They are not in religious group yet. I will write more if I spot something in Japanese magazines.
Mongolia has huge supply of uranium. Japan is a good customer of uranium. Mongolian people they are superior than Japan. Gin Ghis Khan once attacked Japan with his nomad soldiers. Japanese samurais defended Japan and defeated Mongolia. Mongolian lectures coming Japanese that only Mongolia lost was because they went attack Japan far away from Gobi desert. Mongolia would win if Japan attacked in Mongolia. Japanese people politely bow and "yes, I agree with you. Thank you" or "Oh, I did not think that way. Thank you." They just want to buy uranium. Japan buy their crops, too. Iran offered to buy uranium. Mongolians are excited on Toshiba creation and inviting Japan to make plants there. It wants Japan to build un-recyclable nuclear waste dump. it will make that on the Gobi Desert where there is no people living. Next Iran's business offer to Mongolia.
Iran's proposal about its oil to Japan. Japanese constitution prohibits Japan to send any fleet out of Japan. This is to ensure Japan will not attack any countries in future. However United Nation asked Japan to send Japan's Defense Force to Middle East. Japan modernized itself about 150 years ago modeling USA. So, when USA asked Japan to send Defense Forces to Middle East, older people who remember Gen. MacArthur and young people who admire USA got an idea. Japanese Constitution prohibit sending fleet out of Japan. It does not mention airplanes. So, Japan sent its forces to Middle East. Now these forces are coming back to Japan because USA is pulling out. ........... Iran offered to sell its oil to Japan. Japan does not Iran's oil because it will use nuclear energy plants. Next Iran, Monglia, Japan
Jerry 5 .. Dickenson: This is a new info I gathered from Japanese magazines. JAPAN's former prime-minister say the country was not prepared for last year's nuclear disaster in Fukushima. Naoto Kan said nuclear energy industry used inadequate safety guideline to crisis management which now are overhauled. ... REBUILDING ... mot near Pacific Ocean. Worrying Emperor became very sick, even he is a only symbol of Japan and not included in politics by law. He had 4 heart-bypass surgery and it was successful (He is 78 or 79 - the same age with his kindergaten class mate Yoko Ono). Namie Town is not going to be re-created. 24 diameter KM will be ghost town to ensure safety. Nuclear exclusion zone. Japanese people are not opposing new nuclear energy industries. Nuclear Energy Industry released detailed information on their plan. Next I will write about Iran, Mongolia and Japan regarding Iran's proposal to Mongolia and Japan
Chris Milam Sport Complex Arena developer $ 1.2 Billion high rise condo on Las Vegas - skim They have been caught many times. ......M A Y O R ... Have you been to NBA games? Watched NBA games on TV? If so, did you turn only watched Video? It always mention HOW MANY PEOPLE attended. If you did not turn down commentators' voice, can you compare their attendance numbers with 17500? Fortunately, Miram has been too busy for his skim plan that he did not know how many people attend to NBA or succor games. He figured 17,500 will fool you. Well, you are fooled but Henderson citizens are not. Did you meet with Mr. S. to help you with his Chinese Language. I thought Henderson will stop FIRST female Police Chief, First City Manager but I guess you will be proud to have First Chinese speaking City Manager to be gypped by skim-expert Chris Miram.
Puhleeze!!! I have a MUCH better chance of success as a one legged track star than a cockamamie"World class arena" does in lower Henderson. These carpet bagging SOBs deserve to be tarred and feathered long before they deserve one penny of public financing. The ONLY arena /stadium complex plan that MIGHT work has to be within walking distance of The Strip and UNLV. There's a good reason why moron,miserable and mistake all start with "M"
Milam creates fraud. Haney lies for him for money. CRS parent company is worth $1.4B with $789M liquidity. They are a publicly traded company so can not place this kind of money in speculative real estate like an arena nor would they, and it would bankrupt them.