Project with no gaming set for Strip, Harmon

David Strow

Tuesday, Aug. 1, 2000 | 10:56 a.m.

Lakes Gaming Inc. announced a joint venture Monday to develop a new hotel, retail and residential development in the center of the Las Vegas Strip -- a project company officials call a blend of Times Square and New York's Central Park.

Lakes described the project "as an upscale retail, commercial, hotel and entertainment complex" that will sit on 16 acres at the southeast corner of Harmon Avenue and the Strip. Those familiar with the project said the project's estimated cost is $700 million.

The land for the development, currently owned by Lakes Gaming, will be sold to and developed by a joint venture owned by Lakes and Metroplex LLC, owned by Las Vegas developer Brett Torino. Unlike many of the Strip's new projects, however, there are no current plans to include any gaming in the project, a possibility the company has eyed since Lakes predecessor company Grand Casinos acquired the site four years ago.

"I'm not sure it needs another gaming property in that location," said Timothy Cope, chief financial officer of Lakes. "There are plenty of first-class gaming locations in that area, and we probably don't have the wherewithal to build another gaming facility there.

"This is a chance for us to get into partnership with a quality developer familiar with the Las Vegas area. We decided it was a good opportunity to use a prime piece of land on the Strip for what we think will be a successful development."

The project will be jointly owned by Lakes and Metroplex and managed by Torino. Lakes will have voting control, though both companies must agree on any "development decisions affecting the real estate." Metroplex officials could not be reached this morning for comment.

David Atwell, president of Resort Properties of America, the land parcel's exclusive broker, said plans now call for a $700 million retail, hotel and condominium complex, with a 52-story tower and upper-end retail space that would "rival the Forum Shops (at Caesars)." Time-shares are also being considered for the project, Atwell said.

"It's a step up from anything we've seen in Vegas so far," Atwell said. "It's across from the Aladdin, and directly across from the MGM (MIRAGE)'s new project (at the Boardwalk parcel on the Strip).

"This is the finest location in Las Vegas, and it's taken awhile to put the deal together, but it was just a matter of time before the right developer saw the incredible value of the property."

At this point, Cope said, the partners are envisioning a complex that combines "New York's Times Square with a New York Central Park project."

"What we're trying to do is take advantage of this location," Cope said. "There's not really any walk-in, off-the-street retail spots on the Strip. We see this as a viable alternative."

Final plans for the project haven't been nailed down yet, Cope said, though the first retail tenants are expected to be signed up within six months, followed soon after by a groundbreaking.

"They are actively looking for tenants for the property, and we'll just go from there," Cope said.

Lakes was formed in December 1998 as a spin-off of the tribal gaming business of Grand Casinos, which was then acquired by Park Place Entertainment Inc. The Minneapolis company currently has no casino holdings in the Las Vegas area.