DI to close Monday, 2 days early

Keith Paul and David Strow

Thursday, Aug. 24, 2000 | 11:23 a.m.

Officials at the Desert Inn informed employees Wednesday that the 50-year-old resort will close its doors for good at 2 p.m. Monday, two days earlier than expected.

The announcement apparently touched off a wave of anger among some remaining employees at the resort. Hours after the announcement, two small, suspicious fires broke out in an employee tunnel walkway in the basement.

Mark Lefever, chief executive of the Desert Inn, said the decision to close early was "based on our workforce and where we are with our (customer) volumes."

"It's time," Lefever said. "It's very sad. There's a lot of terrific people who worked here, and it's a very melancholy time."

Lefever said more than 50 percent of the 1,700 workers who were at the resort when Steve Wynn announced in June it would close have already left for other jobs. A handful of employees will be retained in the corporate offices, as well as with the Desert Inn Golf Course, which will remain in operation through at least September 2001. But Lefever said he couldn't say how many employees would keep their jobs after Monday.

Those hotel guests who held reservations have been rebooked at other properties, Lefever said, while all conventions had already been scheduled to be held elsewhere. Only about 300 of the hotel's 700 rooms remain in operation.

"There weren't many (hotel guests that had to be moved)," Lefever said. "It really wasn't even an issue."

Wynn's purchase of the Desert Inn for $270 million was announced April 27.

While seeking approval for the deal from the Nevada Gaming Commission June 22, Wynn said for the first time that he planned to close the resort Sept. 30 and replace it with a massive new megaresort, complete with two, 59-story hotel towers.

Six days later, Wynn moved up the closure date to Aug. 30, and said afterward that the closure could come sooner if employee levels dropped to a level that made it impossible to keep operating. Many employees were expected to leave to take jobs at the Aladdin, which opened Friday, and at the Suncoast in western Las Vegas, which opens in September.

Wynn's initial announcement sparked anger among some Desert Inn employees. On Wednesday, it appeared a few employees' anger boiled over.

Clark County firefighters were called to the Desert Inn about 4:50 p.m. Wednesday and found a linen cart on fire. They quickly extinguished the small blaze, department spokesman Steve La-Sky said.

When the smoke wouldn't clear out, firefighters went down the tunnel checking for other fires.

"They found a trash can on fire in a room off the tunnel behind some closed double doors in a room with a service elevator," said Capt. Wayne Burns of the fire investigations unit.

The second fire was found about 15 minutes after the first one was put out, but it seemed to have started while firefighters were in the tunnel putting out the linen cart, officials said.

While Burns wouldn't label the two fires as arson, he did say they were suspicious and the investigation was continuing.

Lefever said he was "troubled" by the two fires.

"A fire (official) told me the fires appeared to be malicious," he said.

Asked if he believed the fires may have been started by a disgruntled employee upset about the closing of the Desert Inn, Lefever said it is possible.

Several employees were evacuated from the building because of the smoke. As they left the resort, many employees had disparaging comments about the closing of the casino. Some smiled when word started filtering around that the fires may have been set. None would give their names.

Lefever said security would be increased in the final days leading up to the closing of the Desert Inn.

No hotel guests or casino patrons were forced from the building because of the fires and the damage was minimal, fire officials said.

Burns said the Desert Inn remains safe as the fire alarms and the sprinkler system are working.

With the closure, the life of one of the Strip's most legendary properties, Las Vegas' first true golf resort property, will quietly come to an end. Despite Wynn's grandiose plans, some Las Vegans and regular visitors have mourned the loss of a piece of Strip history.

Shannon Bybee, executive director of UNLV's International Gaming Institute, said the end may have been inevitable, given the losses the Desert Inn has incurred for years. In the end, Bybee said, the Desert Inn's small size and its inability to compete with the newer Strip resorts may have spelled its end.

"In spite of people's yearnings for yesteryear, they like to live in the modern era," Bybee said. "The same people that hate to see it torn down are the same people who won't stay there. They just want to look at it.

"He's knocking down this shell around rooms that were redone. It's not the same hotel it was ... it's not the same D.I."

Bybee also defended Wynn's record over the past decade with the creation of the Mirage, Treasure Island and Bellagio.

"Look what Steve Wynn has done from the Golden Nugget (Wynn's first Las Vegas property)," Bybee said. "Look how many jobs he's created. Some of the structures (Wynn has purchased) may not be around, but the jobs he's added to the overall economy are very important."