LAS VEGAS | Boom Project Rundown! 2.0 [Archive] - Page 63

justdefended

Mar 3, 2009, 6:36 AM

Went and checked out the M Resort today. It's definitely a nice locals casino. The look inside is a bit like Mirage, albeit brighter and with higher ceilings. Lots of dark woods, chandelier accents, and sleek lines.

Walked through the Studio B Buffet and it's a definite looker. A ton of LCDs that highlight other restaurant properties and a great food selection for dinner, including sushi, Peking duck, crab legs, and a gelato bar.

The casino is huge but they've stuffed way too many slots in there. Each slot section is a little oversaturated with video poker, also, not that many penny options.

The property is upscale, but looked like a retirement home inside. I'm guessing all the elders want their club card for comps and discounts right away.

One of the cooler things is the Complimentary Refreshment Bar. I saw about three of them at corners throughout the property to self-serve soda. To my surprise they weren't hounded by customers.

It's nice to have a new property in area, definitely worth checking out. Though the next few weeks will probably be a bit more suffocating with a mix of smoke and Ben Gay.

sw5710

Mar 3, 2009, 7:13 AM

What is the order of the next resorts to open this year?

mac78130

Mar 3, 2009, 11:43 AM

MGM Mirage in cash crunch, Chapter 11?

http://www.lasvegassun.com/news/2009/mar/03/mgm-mirages-cash-crunch/

mac78130

Mar 3, 2009, 11:49 AM

From the earthcam, there's a huge crawler crane in front of the Cosmo. I wonder what it's for??

justdefended

Mar 3, 2009, 5:26 PM

MGM Mirage in cash crunch, Chapter 11?

http://www.lasvegassun.com/news/2009/mar/03/mgm-mirages-cash-crunch/

It seems like if it came to it, MGM could sell some properties to generate cash. They have plenty of non-core assets that other game companies would jump on, though they would certainly have to take a hit on the sale price like TI.

If they delay CityCenter, the casino, restaurants, spas, and hotels won't generate any revenue. It seems worse to have empty buildings there not generating any cash flow, particularly when they are in the final stretch.

mdiederi

Mar 3, 2009, 5:56 PM

MGM Mirage in cash crunch, Chapter 11?

http://www.lasvegassun.com/news/2009/mar/03/mgm-mirages-cash-crunch/

I wonder how much, if any, of CityCenter will actually open on time? According to some analyst reports I've read, there is a very high risk that Dubai may actually pull out from the investment all together.

Seva

Mar 3, 2009, 6:58 PM

They will sell off Mirage, as with FB even if CC opens doesn't mean everything will be fine if visitation doesn't pick up. Selling Mirage to that guy who bought TI makes sense as it's just sitting there by itself away from other MGM resorts. The tram still connects it with TI also..

MGM will never sell any of the Mandalay properties down south, they will possible one day connect those with the CC tram and they are contiguous will their other resorts.

CC is their main flagship they would not dare to lose it, wouldn't be surprised to see them rename the the company Aria resorts or something after getting rid of Mirage.

If Dubai pulls out, well all bets are off, the sh*ts gonna hit the fan.

mac78130

Mar 3, 2009, 7:14 PM

From the earthcam, there's a huge crawler crane in front of the Cosmo. I wonder what it's for??

Answering my own question.. Looks like Cosmo is completing the podium (the area used for staging)

Krases

Mar 4, 2009, 12:04 AM

City center MUST be finished. It would be a terrible blow to the economy and confidence in Vegas for it to not get finished up.

They should sell Mirage and if needed sell some of there land plots like the one next to Circus Circus and across from the Mandalay bay.

That all should get a cool billion to finish City Center the right way and properly absorb the Cosmo.

lfc4life

Mar 4, 2009, 12:54 AM

if dubai did pull out wouldn't they be the ones to lose everything invested??

mgm have been looking for this extra $1.2 billion for going on 9 months now it seems, which to me suggests dubai has already invested all its money in the project, however much that was (i suspect 50% of the original $7 billion quoted figure)

mdiederi

Mar 4, 2009, 1:23 AM

I don't think Dubai has fully paid for its part of CityCenter yet.

http://uk.reuters.com/article/marketsNewsUS/idUKN0356358220090303
"One of the things that's really going to make the situation a lot more difficult is the persistent rumors that Dubai is not going to be able to fulfill its commitment in terms of the CityCenter joint venture," said CreditSights' [Christopher] Snow.

http://www.gamblingcompliance.com/node/35872/search/hl/mgm+dubai%3B
Shaun Kelley, gaming analyst with Bank of America/Merrill Lynch, suggested there were three reasons to remain, at the very least, doubtful about Dubai’s level of commitment.

First, Dubai’s two largest property developers, Emaar and Nakheel, have both made comments about eliminating or drastically reducing investments. Second, two of Dubai’s largest mortgage companies, Tamweel and Amlak Finance, were already bailed out last fall. Lastly, only last week, Dubai cut off funding for a US housebuilder (John Laing Homes) despite purchasing it for $1bn in 2006 and subsequently investing a further $613m.

CosmoVegas

Mar 4, 2009, 4:14 AM

Not looking to good for MGM...http://www.google.com/hostednews/ap/article/ALeqM5jRqOAo7SpSDelHMf1cR6-Delj5tgD96MU1801

Seva

Mar 4, 2009, 4:23 AM

whoa definitely not good to hear.

MGM Mirage might face bankruptcy filing - RJ
http://www.lvrj.com/news/breaking_news/40689252.html

davidcharles

Mar 4, 2009, 6:55 AM

went to M the other night- great place. Its not huge, and doesn't really have anything we have not seen before, but it had this aura that I have not seen since I arrived in Vegas 6 yrs ago. It felt communal, it really did. They had FoodTV playing on the plasmas- something you're unlikely to see on the strip.

Found this little blog post from a local
http://brooklyninvegas.com/?p=214

curious to hear everyone else's thoughts

mac78130

Mar 4, 2009, 12:57 PM

flickr photo by le shark (http://flickr.com/photos/johnnygibson/3327373571/)
http://farm4.static.flickr.com/3592/3327373571_cb8599031d_b.jpg

Krases

Mar 4, 2009, 5:10 PM

Now that is a nice picture. We need more Bellagio style lakes here in Vegas. More romance balancing out the modern like in that picture.

I was reading the review journal this morning. A analyst for Dutche Bank (sp?) says that MGM will go through a number of steps before attempting a restructuring and bankruptcy. The analyst said that selling off properties in Vegas, Detroit and other cities would be a major goal for getting more money.

They should see if Ruffin wants Mirage.

davidcharles

Mar 4, 2009, 5:30 PM

more lakes would be nice- but given the economy- I don't think too many companies would be interested in putting up a lake on property that costs $10m/acre :)

too bad- hopefully we will pull out of this and be alright
but I have a feeling the days of bellagio type hotels in this city are in the rear view mirror

the M is leading the charge- in simple value luxury- not over the top and not imperial palace- just back to basics- with some lessons learned from the big boys, as to what works and what is wasteful

justdefended

Mar 4, 2009, 5:56 PM

I think the announcement from MGM Mirage that they will default on debt convenants is a signal to all buyers that nothing is off the table.

MGM has a ton of properties that could be sold to get some quick cash, some not even in Vegas, including the MGM Grand Detroit and Beau Rivage. Not to mention there are large pieces of land they own - from the parcel near Circus Circus to the plot in Atlantic City - they just need to get on the ball and start trimming the fat.

Deutsche Bank analyst says though it looks like MGM and Sands are moving towards bankruptcy, they have a few options before it comes to that.

http://uk.reuters.com/article/electionsNews/idUKTRE5227L920090303

One option would be to monetize CityCenter, which could give Deutsche a stake in CityCenter for a loan to finish the project.

I think even if they do enter Chapter 11 to restructure debt, they would have a plan to emerge from it shortly after, not unlike Station's plan.

Krases

Mar 4, 2009, 6:03 PM

Seva

Mar 4, 2009, 7:00 PM

boyd's station buyout offer was refused.
http://www.lvrj.com/news/40703352.html

they could offer more but the fertittas probably aren't warm to this at all.

Adelson defends Vegas, offers contest.
http://uk.reuters.com/article/burningIssues/idUKTRE5226US20090303

voice of reason

Mar 4, 2009, 7:14 PM

MGM has two huge problems:

1. If they sell a property, who are they going to sell it to? None of the other gaming companies are willing or able to come up with a decent price.

2. Deutsche Bank isnt going to loan any money to MGM. MGM has too low a credit rating to justify it.

I can hear the board of directors meeting in Germany. "You want to get us involved with another huge resort in Vegas? We already have one we dont know what to do with!"

mdiederi

Mar 4, 2009, 9:36 PM

I didn't know Sands wasn't doing very well.

I think Wynn has a big advantage. All of his projects are finished now. A definite advantage over other companies that are being weighed down with non-money producing projects.
Adelson had to kick in about a billion in cash of his own money to keep the doors open last fall, then they raised about another billion in new stock. They are still working on trying to finish Singapore, but halted Cotai.

Encore Macau is still under construction.

Krases

Mar 4, 2009, 11:19 PM

Interesting that Boyd was refused. I wonder if they will re-offer in a few months if Station isn't doing well.

I didn't realize there was an Encore in Macau. I thought he had finished construction. It apparently opens in December though.

CosmoVegas

Mar 4, 2009, 11:22 PM

One by one they go....who's going to pick up the pieces? Someone is going to get some deals...

http://www.lasvegassun.com/news/2009/mar/04/moodys-fontainebleau-could-default-debt/

mdiederi

Mar 4, 2009, 11:26 PM

Even the Riviera just received a notice of technical default from their lender. Which is weird, because if they borrowed any money I sure can't tell what they spent it on?
http://www.lasvegassun.com/news/2009/mar/04/riviera-gets-notice-default-stock-tumbles/

Stratosphere just laid off a bunch of people at their places.
http://www.lasvegassun.com/news/2009/mar/04/stratosphere-owner-lay-workers-halt-pay-increases/

Jim Murren just sent a letter to all the MGM employees telling them to not worry. Yeah, right.
http://www.lasvegassun.com/news/2009/mar/03/mgm-mirage-chairmans-letter-employees-about-compan/

Krases

Mar 4, 2009, 11:55 PM

Argh its to much stress!

*jumps off Stratosphere*

It will be interesting to see what happens, new arrivals to the Vegas scene are always a good thing and I think MGM needs to be broken in half anyway because you tend to lose competition when one company owns half the strip.

That said, I also want to see the short term completion of City Center and I don't want to see people getting laid off en-mass.

lfc4life

Mar 5, 2009, 12:00 AM

MGM has two huge problems:

1. If they sell a property, who are they going to sell it to? None of the other gaming companies are willing or able to come up with a decent price.

not all the gaming companies in the world currently own hotels on the strip :)

i am sure many native american operators are just waiting to jump in, not to mention australias crown who i suspect are eyeing a mid-strip presence one of these days, james packer won't be satisfied with a small stake in Fblue or owning eastside cannery

penn gaming with no debt on board and tonnes of cash in hand have been looking at the mirage for months but they felt the asking price of $1.2b was a little too high for a 20 year hotel.

phil ruffin who still has alot of cash in hand (from the frontier sale) despite buying TI would't say no to another bargin i am sure, neither would george maloof who owns the palms. when all this is said and done we will have a different strip for sure, one where many owners compete against each other not one where 2 companies totally dominate. to quote steve wynn "i am in favor of the unbundling of las vegas, it will be a good thing"

Even the Riviera just received a notice of technical default from their lender. Which is weird, because if they borrowed any money I sure can't tell what they spent it on?

$200 million makeover
http://www.reuters.com/article/pressRelease/idUS217748+09-Apr-2008+PRN20080409

Seva

Mar 5, 2009, 12:42 AM

And the more the merrier, Harrah's to join the likely to default party as well. This is quite simply ridiculous.

http://www.lasvegassun.com/news/2009/mar/04/harrahs-could-be-short-cash-pay-debts/

I know in long run things may be better with more diversity on the strip and competition but to think this really didn't have to come to this. Slower and controlled expansion vs the aggressive one uppmanship would probably have given us the same type of boom, although over a much longer period. Of course hindsight as they say...

Krases

Mar 5, 2009, 1:57 AM

It seems like every building boom is bigger than the last. I seriously think that when some of the current strip companies get to there lowest point they will either:

A). sell off large properties for quick cash or
B). get large percentages of the companies bought up by cash-fat new companies.

The next building boom will happen as the economy shows definite signs of improving. New companies on the block will immediately start construction of massive new casino-hotels and condo's. This new boom will happen perhaps a year after things start to get better because construction will need to go ahead quickly to line-up with the economies recovery. This is based entirly on my wishful thinking.

The worst thing that could happen is that the current companies owning the strip decide to go into bankruptcy instead of sell off properties.

Ideally I would like to see Boyd possibly sell the Echelon. Station casino's could also sell the VIVA land and just stay local. Harrah's could sell Bally's, Paris and the plot of land behind Paris...maybe even Rio. MGM is the big one that I think needs breaking up. MGM should definitely sell Mirage as soon as possible even if it sells for less than a billion. They could also sell Circus Circus, various empty land plots scattered around and if they really needed the cash, Excalibur, Luxor and Mandalay bay. Yeah I know that wouldn't ever happen but I do think MGM needs breaking down to bring competition back to the strip.

Now there is just one problem with this idea: what about mega-projects? It takes huge companies like MGM to spend 10 billion on a gigantic more than mega-resort. More phase based construction?

justdefended

Mar 5, 2009, 3:05 AM

MGM, Deutsche Bank Said to Abandon Talks on CityCenter Loan

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYmULf_GDqWY&refer=home

Talks are over between MGM and Deutsche. Looks like both are now in discussions with other parties.

voice of reason

Mar 5, 2009, 4:15 AM

Finish the outside of Cosmo, button it up, wait for a better market.

Seva

Mar 5, 2009, 4:17 AM

Now there is just one problem with this idea: what about mega-projects? It takes huge companies like MGM to spend 10 billion on a gigantic more than mega-resort. More phase based construction?

Exactly. Biting off more than they could chew is what caused MGM's problems in the first place. No reason they couldn't do it in phases and still have a master planned project. The Mandarin and Vdara could easily have been built by themselves after the main hotel opened.

No one thinks too much of it but the Caesars complex is pretty darn big, and got that way from continual phased expansions, though they obviously didn't master plan it all from the start so everything looks piled on in there.

Also you could always do a coop master planned project with several builders following a general master plan but owning their own buildings. Since costs are split up there isn't solely one company doing everything by themselves. Downtown's Union Park is doing it this way.

MGM may sell off some of CC's smaller buildings so in a way it sort of becomes this ironically enough.

Krases

Mar 5, 2009, 5:23 AM

Exactly. Biting off more than they could chew is what caused MGM's problems in the first place. No reason they couldn't do it in phases and still have a master planned project. The Mandarin and Vdara could easily have been built by themselves after the main hotel opened.

No one thinks too much of it but the Caesars complex is pretty darn big, and got that way from continual phased expansions, though they obviously didn't master plan it all from the start so everything looks piled on in there.

Also you could always do a coop master planned project with several builders following a general master plan but owning their own buildings. Since costs are split up there isn't solely one company doing everything by themselves. Downtown's Union Park is doing it this way.

MGM may sell off some of CC's smaller buildings so in a way it sort of becomes this ironically enough.

Yes!

Master plans may be the wave of the future for Vegas. Its interesting that Caesars has never destroyed a building, they just keep adding and renovating which I would imagine is pretty cheap in comparison to CC's method of building.

mdiederi

Mar 5, 2009, 5:47 PM

Convention Center expansion put on hold.
http://www.lasvegassun.com/news/2009/mar/05/convention-center-expansion-could-be-put-hold/

mac78130

Mar 5, 2009, 6:02 PM

Hiring another 250

http://www.lasvegassun.com/news/2009/mar/05/m-resort-hiring-another-250/

SLC Projects

Mar 5, 2009, 6:14 PM

How's the City Center project coming along? I have heard that alot of projects in the Vegas area have been put on hold.

mac78130

Mar 5, 2009, 6:54 PM

flickr photo by Znarfus3650630 (http://flickr.com/photos/znarfus3650630/)

http://farm4.static.flickr.com/3550/3331103180_e96c626880_b.jpg

CHAPINM1

Mar 5, 2009, 7:03 PM

:previous: Lookin Sharp!!! :previous:

justdefended

Mar 5, 2009, 7:06 PM

Hiring another 250

http://www.lasvegassun.com/news/2009/mar/05/m-resort-hiring-another-250/

This is great news. Being there it was apparent that the staff had to tackle a lot of customers. The line for the rewards card was ridiculous and the cafe and buffet held pretty steady lines.

BTW, the M Resort lunch buffet is awesome. $8.95 with the club card and they had fresh spicy tuna rolls, crab legs, clams, and mussels. There's also a seating area in the back with a full panoramic view of St. Rose and the Strip - my favorite part of the place so far.

mdiederi

Mar 5, 2009, 10:51 PM

I heard that construction was stopped at Cosmo. Can anyone verify?

DrT

Mar 5, 2009, 11:11 PM

The $2.9 billion Strip resort, under construction north of the Riviera and south of the Sahara, is expected to open in October with 3,185 rooms. Developers hope to sell as many as 1,000 of them as condo-hotel units.

How do they expect to sell 1,000 condo-hotel units when they have not put any of them on sale?

RandalR

Mar 6, 2009, 12:29 AM

I heard that construction was stopped at Cosmo. Can anyone verify?

There are work lights on, but I can't tell if there is any activity. They are very close to finishing the exterior, so it wouldn't seem to make sense to stop just yet.

fishordie

Mar 6, 2009, 2:33 AM

Actually a friend was at a Contractors meeting in Vegas and heard of layoffs of electrical guys working on the West Tower. He was told only the East tower would be condos and the West tower will be hotel. Sounded like a real source but we will see.

FOD

There are work lights on, but I can't tell if there is any activity. They are very close to finishing the exterior, so it wouldn't seem to make sense to stop just yet.

Seva

Mar 6, 2009, 6:06 AM

Looks like CityCenter's west sign is being worked on, taken this morning. It used to be one of the two huge Bellagio signs.

Hopefully it won't be a boring plain rectangular LED and is actually something memorable.

http://i43.tinypic.com/29xzzaw.jpg

LV New City Hall Project could start by summer, there is a fight between the Culinary Union to stop the $267 million project with construction workers supporting it as it will give them work.
http://www.lasvegasnow.com/Global/story.asp?S=9946648&nav=menu498_1_3
http://i44.tinypic.com/11qh2xj.jpg

Krases

Mar 6, 2009, 7:09 AM

That is a NICE looking city hall. I would love to see more detailed pics of it though.

It would be pretty hard to get any worse than the current city hall. Its just...bleh!

I would like to see them possibly aim for LEED platinum. That would be cool. Why is the culinary union against this?

Seva

Mar 6, 2009, 7:25 AM

It's pretty decent, I'm sure it does have some type of LEED tech, those things in front of it look like solar panels. It looks like it could belong in CityCenter even. And I'd like to pretend the current LV city hall building doesn't exist. No wonder the mayor drinks all that gin working in that brutalist bunker all day.

The article mentions something about " the city refused to mandate union representation in a new hotel that is to be built downtown" It's rather strange though why the Culinary of all groups is showing this much opposition.

Another article which explains more.
http://www.lasvegassun.com/news/2009/mar/04/what-led-plan-build-city-hall-absent-voter-ok/

CHAPINM1

Mar 6, 2009, 7:39 AM

Actually a friend was at a Contractors meeting in Vegas and heard of layoffs of electrical guys working on the West Tower. He was told only the East tower would be condos and the West tower will be hotel. Sounded like a real source but we will see.

FOD

I like the west tower better so that works out nice!

BTW, that City Hall is kick ass!!!

jazfingr

Mar 6, 2009, 9:16 AM

Actually a friend was at a Contractors meeting in Vegas and heard of layoffs of electrical guys working on the West Tower. He was told only the East tower would be condos and the West tower will be hotel. Sounded like a real source but we will see.

FOD

I Blogged about this
here (http://blog.vegastodayandtomorrow.com/2009/03/04/rumor--construction-on-cosmo-beach-tower-may-be-suspended.aspx) and here (http://blog.vegastodayandtomorrow.com/2009/03/05/cosmopolitan-rumor-update.aspx)

They are probably redesigning the rooms, de-condo-ing the big tower, removing the kitchens and such, to make it a hotel. Sounds like a good move.

silverbow

Mar 6, 2009, 11:02 PM

I heard that construction was stopped at Cosmo. Can anyone verify?

Stopped or slowed down - your choice.

Work slows at 3,000-room Vegas resort project (http://www.kvbc.com/Global/story.asp?S=9962468)

CTLV

Mar 6, 2009, 11:37 PM

Stopped or slowed down - your choice.

Work slows at 3,000-room Vegas resort project (http://www.kvbc.com/Global/story.asp?S=9962468)

http://www.lvrj.com/news/breaking_news/40869797.html

mdiederi

Mar 6, 2009, 11:48 PM

Drove by and saw them working on the podium out front of Cosmo, where that big crawler crane is.

justdefended

Mar 7, 2009, 12:37 AM

I wonder if Deutsche is thinking of partially opening the resort and not completing the interior of the larger tower until demand increases. Let's hope that it can even open to start some business going instead of sitting there looking pretty.

True Blue

Mar 7, 2009, 1:16 AM

I think Deutsche Banks will stop construction when the exterior is completed, kind of like what Caesars Palace is doing. They would then wait to sell when the market improves rather than spend another billion dollars to finish the inside. Besides, when the Cosmo does sell, the new owners may not want the condo/hotel concept with kitchens in all the units. This way the interior can be custom built the way the new owners wants it.

What becomes of the unit owners if Deutsche Bank does stop construction? I would feel this would be in violation of the purchase agreement. The owners should be given their deposit back plus interest. As a Cosmo unit owner myself, I’m hoping for this result.

mdiederi

Mar 7, 2009, 2:52 AM

Sounds like Hilton signed some sort of Cosmo agreement with Deutsche Thursday.
http://www.lvrj.com/news/breaking_news/40869797.html

Krases

Mar 7, 2009, 4:44 AM

Will Hilton have strip front property? Tune in next time to find out!

JDRCRASH

Mar 7, 2009, 4:52 AM

From Los Angeles Times | Business | REAL ESTATE,

MGM, Deutsche talks said to fail

MGM Mirage and Dubai World failed to reach agreement with Deutsche Bank and talks on a $1.2-billion loan to complete the Las Vegas CityCenter project collapsed, according to five people with knowledge of the matter.

Deutsche Bank was seeking equity and debt stakes in the $11.2-billion development on the Las Vegas Strip in return for the loan. MGM Mirage and Dubai World are now holding talks with other parties, one of the people said.

-- times wire reports

justdefended

Mar 7, 2009, 5:03 AM

MGM Mirage Has Means to Stave Off Bankruptcy

http://www.casinogamingstock.net/news/mgm-mirage-has-means-to-stave-off-bankruptcy-90395

Interesting article. Analysts say the SEC filing that MGM may default on loans is a tactic to get a better terms from creditors.

Also, in the Cosmo article MGM Mirage spokesman Alan Feldman said the company would "pursue options that are far better than Deutsche Bank presented" to obtain financing for CityCenter.

mdiederi

Mar 7, 2009, 8:26 AM

http://www.lasvegassun.com/news/2009/mar/06/work-cosmopolitan-resort-hold/
Displeased with Cosmopolitan’s interior, bank rethinks decor
This would be the third interior design for the Cosmopolitan

mac78130

Mar 7, 2009, 3:20 PM

Would you take a pay cut so a project could be completed and you keep a job?:hmmm:

http://www.lasvegassun.com/news/2009/mar/07/perini-seeks-union-givebacks/

Scruffy

Mar 7, 2009, 4:53 PM

^ i would.

New City Hall is SHARP!

Krases

Mar 7, 2009, 5:27 PM

The_Analyst

Mar 7, 2009, 6:47 PM

http://www.lasvegassun.com/news/2009/mar/06/work-cosmopolitan-resort-hold/
Displeased with Cosmopolitan’s interior, bank rethinks decor

This is what happens when a bank tries to build something. A committee of loan officers and accountants sit around and say, "yeah, that design looks nice--we can save a lot of money with these nice vinyl floor tiles instead of marble" but then the hotel company comes along (be it MGM or Hilton) and says, "what were you bankers thinking?"

Hence the reason why in normal times bankers lend money and developers build things. :yuck:

lfc4life

Mar 7, 2009, 8:13 PM

I hope MGM isn't just bullshitting with empty threats of bankruptcy. I would like to see them simply sell the Mirage for a little under a billion. Ultimately I would like to see them lose a block of casino's like Mandalay bay, Luxor and Excalibur.

Its not that I want them to fail or anything, I want to see them continue with business on the strip when things get better. I just don't like the idea of one company running half the strip because it reduces real competition.

competition is always a good thing, mgm and Kirk Kerkorian have done a huge amount of good work for las vegas but they became too big, harrahs and mgm accounted for 17 of the 23 major resorts on the strip, thats far to many, especially when you consider that outside of PH, wynn and venetian your other non-mgm harrahs strip options were sahara, riveria and trop, not exactly hotels tourists want to travel a couple of thousand miles to stay in

Krases

Mar 7, 2009, 8:50 PM

Yeah the strip needs a lot more competition. Thats why I always hope they will sell a major casino like the Mirage to bring a new kid to the block.

So on a different subject, what do you all think Wynn is going to do with that golf course when things pick back up? I have heard talk of two new hotel towers or possibly condo towers. There is so much land there when you look at it compared to the existing casino. The only problem is that Paradise road might need expanding if they do build something huge there. I already try to avoid Paradise when going past the Wynn everyday due to there only being 2 lanes.

http://img11.imageshack.us/img11/2074/wynngoldcourse.png (http://img11.imageshack.us/my.php?image=wynngoldcourse.png)

RandalR

Mar 7, 2009, 9:35 PM

So on a different subject, what do you all think Wynn is going to do with that golf course when things pick back up? I have heard talk of two new hotel towers or possibly condo towers.

Talk was of two new hotel towers and a convention center along Paradise, which would indeed have to be widened to about four or five lanes in each direction. I think it's safe to say that plan is on indefinite hold.

Seva

Mar 7, 2009, 10:01 PM

Market conditions are one thing but somehow I think ego and mortality should always be considered as well. Wynn did say he wanted to complete his golf course development as his last act and to cement his "legacy." And wanted to see it complete before he leaves the building like Elvis.

I suppose he will try to start on it just as the economy starts rolling again to complete it in time, the scope could be downsized a bit but that's up to him. You don't name your road Wynn Blvd if you don't have some sort of ego, just like the other resort magnates.

Another reason why I don't see him suddenly jumping around a buying up the Echelon or Frontier land anytime soon either. He will focus on his property.

Krases

Mar 7, 2009, 10:06 PM

Oh yeah, for now it is on hold but you never know what might happen.

Random article from LVS. Talks about how the city can rebound and grow anew.

http://www.lasvegassun.com/news/2009/mar/06/planning-guru-holds-out-some-hope-vegas/

Planning guru holds out some hope for Vegas

A year ago urban planning guru Richard Florida told the Sun that Las Vegas has a bright future.

He said the region could draw more artists and musicians, emulating Nashville, a city that morphed from a Southern outpost into a hub for popular music.

The interview came in the days following the release of his book, “Who’s Your City?” in which he maintains that the biggest decision an person makes is where to live.

The author ranked 166 U.S. cities in terms of livability. Las Vegas fared poorly: No. 66 for singles, No. 82 for professionals, No. 88 for empty nesters, No. 127 for retirees and No. 135 for families with children.

But, in that discussion last year, Florida said there was plenty of hope for Las Vegas and its suburban neighbors.

“The thing that bodes best for Las Vegas is its location,” Florida said at the time. “It’s sandwiched between these mega regions, Southern and Northern California and Phoenix. As Las Vegas connects to those regions and becomes part of those regions, it has a bright future.”

Florida is the founder of the Creative Class Group, which advises cities on how to become more attractive to young professionals.

Former UNLV president Carol Harter has applauded Florida’s plan as a way to draw intellectuals to Las Vegas. The redevelopment plan for downtown Henderson reflects Florida’s theory, calling for a vibrant arts scene to draw business and growth.

The recession has derailed those plans, as it has elsewhere as cities grow more concerned with making payroll than enticing hipsters to move to town.

Indeed, much has changed since our talk with Florida in March.

In the current issue of The Atlantic, the author examines the fates of U.S. cities in the post-recession era in an article titled “How the Crash Will Reshape America.”

Of Las Vegas and Phoenix, Florida wrote: “At a minimum, these places will take a long, long time to regain the ground they’ve recently lost in local wealth and housing values. It’s not unthinkable that some of them could be in for an extended period of further decline.”

In an interview from his office at the University of Toronto, Florida talked of how Nevada can rebound.

The key, he said, is to aggressively court businesses that export gaming, such as slot machine manufacturers and video poker game designers, and expand the entertainment industry.

More than just shows on the Strip are needed, he said.

He envisions a city reaching out to recording studios, costume designing firms and filmmakers. In short, the city needs the “Creative Class” to set up in Las Vegas, bringing a diversity to the region that would lessen its dependence on the construction industry.

In the future economy, Florida predicts lower rates of homeownership than in previous generations, meaning a long-term decline in new home construction.

Critical to Las Vegas’ future, he said, is becoming more closely linked with Los Angeles, such as through a long-proposed maglev train.

Connecting the Las Vegas Strip and Hollywood is an obvious way of expanding the entertainment industry and tourism.

But Florida said it also would allow the easy transportation of goods and employees, giving people a larger job market.

The places that create high-speed, low-cost transportation corridors with big neighbors “will be successful in the future,” Florida said.

The places that do not, he said, won’t achieve economic growth.

And will Las Vegas make a fast connection with Los Angeles?

All depends on that train.

I see what he is saying. We need to make connections to other cities to increase growth and we need to diversify into other aspects of the entertainment and arts industries. When it comes to connections with other cities, he suggests the MAGLEV. I think the MAGLEV is a good idea so long as they don't completely screw it up. The main problem is all the negative press it somehow gets like its being called "Harry Rieds pet project".

For connections to Phoenix there is the major expansion of the 93 to make it easier for getting past the hoover dam.

mac78130

Mar 7, 2009, 10:51 PM

flickr photo by oimbert (http://www.flickr.com/photos/oscarimbert/3336582204/)
http://farm4.static.flickr.com/3379/3336582204_8e772a4d1c_b.jpg

lfc4life

Mar 8, 2009, 12:12 AM

Another reason why I don't see him suddenly jumping around a buying up the Echelon or Frontier land anytime soon either. He will focus on his property.

i don't see wynn touching echelon either but he knows as well as we all do that: strip front property > paradise road facing property. thats why i wouldn't be surprised if he bought the frontier site down the road.

Scruffy

Mar 8, 2009, 12:29 AM

justdefended

Mar 8, 2009, 1:03 AM

Really great interview with MGM exec Alan Feldman

http://www.ktnv.com/Global/story.asp?S=9963067

He talks about the Deutsche Bank deal, other offers, the option of selling more properties and the hope that Vegas sees in CityCenter.

voice of reason

Mar 8, 2009, 1:52 AM

You don't name your road Wynn Blvd if you don't have some sort of ego, just like the other resort magnates.

Steve Wynn has 'some sort of ego'?

Are you sure about that ? I want more verification. He has always seemed so humble.

Krases

Mar 8, 2009, 2:09 AM

Steve Wynn has 'some sort of ego'?

Are you sure about that ? I want more verification. He has always seemed so humble.

Hey, at least he isn't like Trump and actually has a decent sense of artistic style. With Trump its "HURRRRR I AM GOING TO PAINT EVERYTHING GOLD."

That said, it would be nice if he didn't skeet shoot orphans all the time.

mac78130

Mar 8, 2009, 10:50 PM

Good for Wynn :tup:

http://www.lasvegassun.com/news/2009/mar/08/wynn-resorts-gets-double-dose-good-publicity/

Krases

Mar 8, 2009, 10:59 PM

^^^Awesome.

Maybe Wynn will become the next MGM?

mac78130

Mar 9, 2009, 1:45 AM

Looks like the Cosmo exterior glass is almost done. Hopefully it will be lit up, when Aria opens.
flickr photo by alternatekev (http://www.flickr.com/photos/conboy/3339719220/)

http://farm4.static.flickr.com/3391/3339719220_af4e46e6e4_o.jpg

Krases

Mar 9, 2009, 3:28 AM

They sure got that done in a hurry.

fishordie

Mar 9, 2009, 3:57 AM

Looks like the Cosmo still has the plastic cladding on the glass siding. I did a double take when I looked at it this Saturday thinking Related went nuts and painted the exterior but I am fairly sure it was just the protection on the glass that has not been peeled off yet

FOD

fishordie

Mar 9, 2009, 4:03 AM

I went to the M and was very impressed. If you go there you might think the recession/depression bypassed this facility. The hotel was so full they were not even taking walkins on Saturday. They have already handed out/signed up over 20,000 point players and will need to have more point cards printed much sooner than they expected.

Everyone from the front desk to the security guards at the high roller room were charming, helpful, inviting and polite. Food and gaming for all levels of income in a place that is beautiful, warm and not over the top but still classy. Open, self serve soda bar. Finally, someone is getting back to the old Vegas and it looks like it is working very very well.

The so called geniuses on the strip could learn a very big lesson from the M... if it is not too late.

FOD

cosmo2k8

Mar 9, 2009, 7:17 AM

Old article but still relevant:

http://www.hospitalitynet.org/news/4031203.search?query=mgm+invest+in+m

Cheers!

mac78130

Mar 9, 2009, 1:13 PM

I don't think MGM would ever sell Bellagio

http://www.lasvegassun.com/news/2009/mar/09/some-casinos-might-be-sale-pricing-them-tricky-bus/

CosmoVegas

Mar 9, 2009, 3:27 PM

Don't really know what to say about this other than; these are the best names they come up with after three months? Why would they even consider social??????
http://www.hotelchatter.com/story/2009/3/9/101837/0103/hotels/What_s_It_Gonna_Be_Hilton_Quinn_or_Denizen_

Seva

Mar 9, 2009, 4:32 PM

I procured more detailed plans for the new City Hall.

http://www5.lasvegasnevada.gov/sirepub/cache/2/1p3kd52zwqiyuh45xbpsdy45/187728403092009092517382.PDF

http://www5.lasvegasnevada.gov/sirepub/cache/2/1p3kd52zwqiyuh45xbpsdy45/187728303092009093212960.PDF

Those panels in front ARE solar panels.

"Photovoltaic panels, mounted on decorative columns up to 50 feet in height, will be used to shade the plaza in addition to generating energy for the structure."

mac78130

Mar 9, 2009, 4:49 PM

lfc4life

Mar 9, 2009, 5:15 PM

I don't think MGM would ever sell Bellagio

http://www.lasvegassun.com/news/2009/mar/09/some-casinos-might-be-sale-pricing-them-tricky-bus/

that's an interesting article and gets me thinking about what mgms other casinos are currently worth seeing that TI sold for $775m

based on earnings compared to TI in 2008 and this is approximate of course :P

Bellagio is worth $2.6 billion
MGM Grand $2.3 billion
MB/The Hotel $1.9 billion
Mirage $1.55 billion (seems penn were getting a good deal at $1.2b)
Luxor $820 million
Excalibur $680 million
NYNY $630 million
Monte Carlo $560 million (going on 2007 figures)
CC $533 million

justdefended

Mar 9, 2009, 8:28 PM

that's an interesting article and gets me thinking about what mgms other casinos are currently worth seeing that TI sold for $775m

based on earnings compared to TI in 2008 and this is approximate of course :P

Bellagio is worth $2.6 billion
MGM Grand $2.3 billion
MB/The Hotel $1.9 billion
Mirage $1.55 billion (seems penn were getting a good deal at $1.2b)
Luxor $820 million
Excalibur $680 million
NYNY $630 million
Monte Carlo $560 million (going on 2007 figures)
CC $533 million

Back in the day when MGM stock was sky high I remember that Kerkorian had a plan to keep only Bellagio and CityCenter and put the rest of the properties up for sale.

With Bellagio's name recognition and as the highest income generator, I think it's the least likely to be sold. Also, I really don't expect MGM to sell any part of CityCenter. It would dislocate the cohesiveness of the campus and fracture the any level of customer service that they want to maintain across the entire project. I'm sure they were thinking the same thing when the option of absorbing the Cosmo came to mind. It just didn't fit with the attached mall and non LEED certified specs.

Mirage would best go to Ruffin since he has TI. Those two really are one giant piece of property.

lfc4life

Mar 9, 2009, 9:16 PM

i can't see mgm getting rid of the grand, its the biggest place they got and along with bellagio is the signature resort, plenty of room for expansion if needed, a 17,000 seat arena (which they don't use to its full potential imo)

if they sell luxor, excalibur, monte carlo and NYNY that should bring in $2.5b at least. finding a buyer to pay top dollar for CC given its location would be much more difficult. selling those 4-5 would still leave them a very strong hand on the strip once citycenter opens and would ease any debt problems.

CHAPINM1

Mar 10, 2009, 7:16 AM

I couldn't read the numbers clearly, but how tall is the City Hall planned to be?

mac78130

Mar 10, 2009, 1:35 PM

flickr photo by jeremy bautista (http://flickr.com/photos/jermball30/3343835408/)
http://farm4.static.flickr.com/3563/3343835408_b8017d2989_b.jpg

mac78130

Mar 10, 2009, 1:59 PM

Evening shot of CityCenter
flickr photo by ob1kdanny (http://flickr.com/photos/ob1kdanny/3342133685/)

http://farm4.static.flickr.com/3647/3342133685_2cfb590fa2_b.jpg

The Cosmopolitan podium is being completed
flickr photo by ob1kdanny (http://flickr.com/photos/ob1kdanny/3342957098/)

http://farm4.static.flickr.com/3394/3342957098_034661d3ed_b.jpg

Seva

Mar 10, 2009, 4:08 PM

I couldn't read the numbers clearly, but how tall is the City Hall planned to be?

145ft with 7 floors

The old one was 11 floors but it was on a much smaller land parcel.

Will be a LEED Silver certified building as well.

ondarox

Mar 10, 2009, 4:44 PM

Those are horrible names!! Denizen? WTH !!

Yup- It's Denizen alright...

I got an email in from the "Hilton Family of Hotels" talking about Denizen:

"Born modern, with global appeal and a local accent

Denizen Hotels will become a cultural epicentre at each of its destinations, cultivating community within its walls. Eclectic, social and humbly authentic, each property within the brand will be smart in design, cultural in character and sensitive in service delivery. Developed as an international intersection of business and pleasure, Denizen Hotels will redefine how guests stay and play. With innovative check-in technologies and in-room comfort controlled at the touch of a button, Denizen Hotels destinations will harness the best and brightest design and technology to provide a seamless guest experience for the modern traveler.

Denizen Hotels and resorts will range from unique, select boutique experiences to larger destination resorts, creating a unified yet eclectic brand for the global traveller. Active development negotiations are currently underway for resorts and destinations in key cities throughout the globe; including, but not limited to Abu Dhabi, Austin, Beverly Hills (California), Buenos Aires, Cancun, Hollywood (California), Istanbul, Jerusalem, Las Vegas, London, Los Cabos, Miami, Montreal, Mumbai, New York City, Panama City and Washington D.C.

To become a Denizen, visit denizenhotels.com."

http://www.denizenhotels.com