Rift reported among Forum Shops partners

Thursday, Nov. 9, 2000 | 10:51 a.m.

The owners of the Forum Shops at Caesars Palace on the Las Vegas Strip are in disputes and may go their separate ways, the Wall Street Journal reported.

Developer Sheldon Gordon, who conceived of the Roman-themed mall, has felt excluded from decision making by Simon Property Group Inc., which was later brought in as managing partner, the Journal reported, quoting people with knowledge of the situation.

Good relations are important because the Forum Shops is on the verge of launching a $100 million expansion complete with a new entrance modeled on the Coliseum, the Journal said.

The two sides have been meeting to discuss their differences, but a parting of the ways is possible. Gordon has priced his stake in the Forum at $460 million. But Simon has challenged that valuation, sources told the Journal.

Gordon would only say that he and Simon "are in discussions about amicably settling our differences." David Simon, chief executive of the giant real-estate investment trust, said he and Gordon "talk about management and leasing all the time."

A Forum Shops spokeswoman declined comment on the Journal story, but noted the expansion is set to begin next spring or summer.

She said the project has been delayed by Park Place Entertainment Corp.'s purchase of Caesars Palace and most recently by changes in management at Park Place, where Chief Executive Arthur Goldberg died last month.