Venetian still set for April opening

Gary Thompson

Thursday, March 18, 1999 | 11:18 a.m.

The Venetian issued a cautiously worded statement Wednesday saying it expects construction of the $1.5 billion Strip resort to be completed on schedule.

But the announcement left the hotel-casino some legal wiggle room with holders of its public debt in case the opening is delayed.

"We are still hopeful that our construction manager, Lehrer McGovern Bovis Inc., will be able to complete construction of the project earlier than expected by April 14," Venetian President Bill Weidner said in a statement.

"However, because of the extraordinary scope and complexity of the project, as well as the large number of components which are being constructed by tenants and third parties, it is difficult to commit firm reservations at this time to groups of rooms for opening earlier than the originally scheduled completion date.

"Most likely," Weidner said, "we will take reservations for rooms on an individual or 'as available' basis commencing the week of April 14, rather than commit to longer lead time confirmations of groups prior to April 21."

A Venetian spokesman said today the resort hasn't cancelled any advance bookings. He also said about 10 of the planned marquee restaurants, more than 35 of an expected 65 retail shops, the entire gaming floor and 95 percent of the hotel tower would be open by April 21.

The spokesman said the Venetian has always planned a soft April opening to be followed by a grand opening in June.

According to a guaranteed-maximum-price contract Venetian owner Sheldon Adelson negotiated with LMB, the resort was supposed to be "substantially complete" by April 21. Otherwise, LMB and its parent company, Peninsular & Oriental Steamship Navigation Co., may be liable for damages of up to $300,000 a day.

That amount would be just enough to cover payments on the $930 million of bank and publicly held debt The Venetian has incurred to build the project.

The contract calls for the hotel-casino's maximum cost to be $624 million, and spokesmen for both The Venetian and LMB said today the project is on budget.

Meanwhile, The Venetian's statement made no reference to any potential delays that might occur if Clark County building inspectors aren't satisfied walls in the resort are safe.

Last week, the county ordered LMB to prove that walls built outside Uniform Building Code guidelines don't constitute a safety hazard.

The Venetian countered with an opinion from its life-safety consultant, Rolf Jensen & Associates Inc., that the walls "meet both the letter and the intent of" the Uniform Building Code.

Therefore, The Venetian said last Friday, "This matter will not delay the opening of The Venetian, since all construction is per code and applicable."

An LMB spokesman said that company will argue that county inspectors have already approved the disputed work. A county official, however, said that doesn't constitute sufficient proof the walls are safe.

County building inspectors issued a correction notice after the International Conference of Building Officials said walls separating suites at the Venetian don't comply with the Uniform Building Code adopted by all 50 states.

In particular, the ICBO said the code requires electrical outlet boxes on opposite sides of walls between rooms to be separated by at least 24 inches. The purpose of the separation is to ensure the integrity of the walls' resistance to fire.

An LMB spokesman acknowledged electrical outlet boxes in some suites don't meet the UBC guidelines, but said that because the work "had been approved by the county's on-site inspector as the building was being constructed, so it already has approval from the county."

But the county said the contractor will have to provide more than documents signed by an on-site inspector; a reinspection will be needed.