Vegas Task Force Recommends REI Neon To Build New Arena

A blue ribbon task force has recommended that the joint venture of REI Neon LLC be selected to build an events center and sports arena in downtown Las Vegas.  The Las Vegas City Council is scheduled to hear the recommendation and accept or reject it tomorrow.  REI Neon was one of six developers that submitted a proposal to the city to build the arena, which could host an NBA or NHL team.  REI Neon is teaming with Turner Construction and urban planner RTKL on the project.  Paradigm Sports & Resorts, Medallion Financial, World Arena, Strather & Associates and Lakes Communications Services were also among the groups that responded to a request for proposals to develop a downtown arena site.  The blue ribbon committee that made the recommendation included Las Vegas Mayor Oscar Goodman, Senior U.S. District Court Judge Lloyd George, Las Vegas Bowl Exec Dir Tina-Kunzer Murphy, LVCVA President Rossi Ralenkotter, Nevada Power President Pat Shalmy and Clark County Commissioner Lawrence Weekly (Liz Mullen, SportsBusiness Journal).

BID DETAILS: REI has partnered with Michigan-based private equity firm Warburg Pincus, and former Rockets President & CEO George Postolos was among those representing the bid during an interview with the committee last week.  REI Neon, which has already won council approval for a $9.5B project on 85 acres downtown, would include “thousands of hotel rooms, high-rise condos and three casinos.”  REI is “largely asking for a property tax rebate on their development,” and City Manager Doug Selby said that it was the “only group not asking for land that the city owns” (LAS VEGAS REVIEW-JOURNAL, 7/15).