The Future of the Ever-Changing North Rim of the Las Vegas Strip
The north edge of the Strip, for years a sleepy stretch of Las Vegas Boulevard, has seen great momentum this year.
Resorts World Las Vegas debuted in June to an estimated crowd of 20,000 visitors and 5,000 VIPs. Huge crowds were waiting outside to enter on opening night, and the 3,500-room casino complex generated nearly $ 15 million in revenue in its first six days, developer Genting Group reported.
Locals have long predicted better days for the North Strip, in large part because of Resorts World. But as a flurry of news has shown this week, the region’s future is still in flux.
Marriott International confirmed on Thursday that it has reached an “out-of-court settlement” with the owner of the unfinished former Fontainebleau, which resulted in the hotel chain’s exit from the long-running casino project, which began in mid-July. bubble of the 2000s and has not yet opened.
Florida developer Jeffrey Soffer’s Fontainebleau Development company, who acquired the property in February, said in a statement that as the project progresses in Las Vegas, we think it’s important to clarify that, upon opening, the hotel will be managed and operated by Fontainebleau Development.
He also noted that the agreement with Marriott, announced in 2018, “was made with the previous owner of the building.”
“After coming full circle and taking possession of the Las Vegas site, we intend to realize our original vision and deliver the same extraordinary hotel experience that our customers expect from Fontainebleau Development,” the statement said.
Soffer was the original developer of the project. His group did not announce when the 60-plus-story resort would open, or what it would be called.
Meanwhile, Majestic Las Vegas developer Lorenzo Doumani said on Wednesday that he plans to begin construction on his 720-room no-game hotel in the first quarter of 2022, after saying in January that he plans to begin construction. late summer or early fall this year.
However, Doumani says he is “still on track” to complete the roughly $ 850 million project by the end of 2024.
In addition, the board of directors of the Las Vegas Convention and Visitors Authority on Tuesday approved the sale of 10 acres of the former Riviera site to a Chilean developer for $ 120 million – a lucrative deal that may not come to fruition. on a new project so soon.
Under the terms of the sale, the buyer must start construction by January 1, 2031 – in more than nine years – or the LVCVA can buy the land back.
After the real estate frenzy of 15 years ago died down, the northern strip struggled with huge tracts of land where plans never materialized, and a few unfinished megastations that were left to pick up the dust. Since then, the region has seen other big projects, but they have largely stalled or have fizzled out. Even Resorts World debuted five years after the developers originally planned to open.
Former NBA player Jackie Robinson’s arena and hotel plan, which he announced in late 2013, has yet to materialize, and casino operator Wynn Resorts has not said when he was planning to develop his 38 acres of land between Resorts World and Fashion Show. mall.
Wynn struck a $ 336 million deal in late 2017 to acquire the land – the imploded former New Frontier home and the Alon Las Vegas project, but never built – and company founder Steve Wynn told the early 2018 that he wanted to move on quickly. a project.
Days later, the Wall Street Journal reported that Wynn had been a pattern of sexual misconduct for decades. Wynn, who called the allegations “absurd,” quickly resigned his post as chief executive officer of his company, citing “an avalanche of negative publicity.”
On top of all this, it’s unclear when the pandemic will be a thing of the past, or when Las Vegas will fully recover from the severe economic fallout.
People have been saying for years that the recovery of the northern strip is imminent and that the region has indeed shown signs of life. But given the condition of some plots and projects along this end of the boulevard, don’t be surprised to hear about this elusive corner for years to come.
Contact Eli Segall at [email protected] or 702-383-0342. To follow @eli_segall on Twitter.