Anschutz Entertainment Group has signed a joint venture with MGM Resorts International to develop a $350 million, 20,000-seat arena near the Las Vegas Strip, MGM announced Tuesday.

AEG of Los Angeles and MGM Resorts of Las Vegas will jointly finance the arena, which would break ground next year and open in summer 2016.

The arena will be between the New York, New York and the Monte Carlo resort hotels. AEG will also sell sponsorships and luxury suites and seek a naming rights partner for the arena.

“We are excited to have consummated a partnership with MGM Resorts International … to begin designing and building a state-of-the-art arena on such an ideally located site,” AEG Chief Executive Dan Beckerman said in a statement. “We will create an arena that offers fans the best live entertainment experience.”