If Texas-based developer Christopher Milam can close on the publicly owned 485 acres south of the M Resort in April, it will be a major milestone toward successfully building his proposed multifacility complex intended to lure professional sports franchises to the city.

It also will test the foundation of the agreements city leaders have made with the developer during the past year and a half.

Dennis Porter, Henderson's utility services director, is also the city's point man for the $1.4 billion Las Vegas National Sports Complex proposed by Milam.

"What city wouldn't like to have a major league sports team?" asked Porter. "A stadium or an arena of this magnitude? Because it's not just the events it brings in. It's the jobs, it's the tax revenue, it's the status it gives a city to have these kinds of venues. It's not just the professional sports; our residents will be able to use a lot of those facilities. Youth athletics, youth enrichment programs, primarily baseball and soccer."

During a recent discussion about the project held in Porter's City Hall office, Bud Cranor, Henderson's communications director, and Porter shared an ironic smile when Porter said, "I love the STAR bond issue."

An acronym for Sales Tax Anticipated Revenue, the bonds were created by the Nevada Legislature in 2005. A STAR bond-qualified project site is designated a redevelopment zone, and the developer is entitled to keep 75 percent of the sales tax derived from the project to pay off the bonds, which mature in 20 years.

STAR bonds must be approved by the Nevada Tourist Commission, which requires a developer to demonstrate that 51 percent or more of the revenue collected by the project comes from out-of-state visitors.

"The politics of STAR bonds are dynamic … some of that is because of some things that happened up in Reno," said Porter, referring to the first projects to use STAR bonds—Legends shopping mall in Sparks and Cabela's Verdi and Scheels stores—that critics argue abused the new bond option.

"It's a $1.4 billion project, and STAR bonds account for, we haven't seen the latest numbers, but probably less than 10 percent," Porter continued.

"The project's not reliant on STAR bonds. Our perspective is we're going to do exactly what we need to do to follow the rules, to do what the state requires, and at the end of the day, the goal of the city is to get us out of this … to support an economic recovery. And that's initially what STAR bonds were intended to do."

Another likely funding mechanism is a property tax increment rebate.

"There's no tax being collected from that land right now," Cranor pointed out. "There's nothing. So what would be derived from that tax increment? There's nothing being taken away from the city.

"These are commonly employed mechanisms that we employ right now, and they're usually employed in redevelopment areas. We have to have tools where we can attract people to come in, build businesses and re-invest in those areas.

"So we give them some of that tax increment that they can use. It's a risk for them to come into those areas, so we give them some incentive to basically come in and help build the community back up."

According to Porter, when something is built, the property tax rises, so the developer actually get to take some of that increment over time to help pay for the project.

"The other important thing the city provides is called the user charge. Concessions, parking, etc. They can actually raise … 12 percent to 16 percent, that range. A lot like Ticketmaster. That charge will go back to help pay for the project.

"We could do that through the city," Porter added. "So the city will actually own those venues and lease them back. That's what allows that to happen. They will build them. They will transfer ownership to the city. That way they can take advantage of those funding mechanisms."

Porter maintains that only those who actually use the facilities will be funding it with tax dollars.

"We'll go out and do our estimates on what public safety, traffic control, public works, barricading, all those things cost. And we'll add an agreement to pay for all those services. If you are inside the district purchasing stuff, you pay for that ticket, food and beverage—you're going to help pay for the project."

"I think people are concerned that we are taking existing tax revenue and earmarking it for this project," said Henderson City Councilman Sam Bateman. "He (Milam) will be getting a portion of the property tax back to pay for the project, but that tax wouldn't exist, if he didn't develop the land."

"The toughest part is going to be getting a team," Councilwoman Gerri Schoder said of the prospects of having a successful complex. "From what I understand, Major League Soccer is the one who is initiating all of this. They would be, I think, first in line."

"I've been with the mayor (Hafen) in New York, we've met with the MLS commissioner (Don Garber) there," said Porter. "They are very interested in Las Vegas as a market."

Major League Soccer officials have not responded to The Henderson Press' inquiries concerning the matter, and a request for comments from the National Basketball Association officials regarding interest in Southern Nevada as a market was met with a form statement from the league's media relations department: "The NBA has 30 strong, competitive franchises. We feel we have the correct number of franchises and have no plans to expand in the immediate future."

The Las Vegas gambling environment has long been a concern for professional leagues contemplating the market, most notably the National Football League, but Porter feels attitudes are relaxing.

"Just about everybody has gotten over the gaming issue," he said. "Now with international gaming and Internet gaming, it's a moot point. The reason the NFL and Major League Baseball aren't in Phase 1 is that they're not as likely to relocate a team or they're not in expansion mode right now."

The NFL last expanded in 2002, adding the Houston Texans. In 1998, the MLB expanded by adding the Tampa Bay Devil Rays, now Rays, and Arizona Diamondbacks.

"I think it's important for people to understand they're not going to see a tax increase to support this project," said Cranor. "Basically what we want to do is provide these people an opportunity to be successful. STAR bonds are a mechanism for funding we can provide for them without our residents being on the hook for that. There's no liability to them in the future."

"We think … I think … the community needs this," Bateman told constituents at a Jan. 11 public meeting, citing the benefits of the construction project in the city and the long-term advantages of having the facility. "But we're going to protect your interests."