LVCVA closes on purchase

Wednesday, May 2, 2001 | 11:06 a.m.

The Las Vegas Convention and Visitors Authority closed on its $14.1 million purchase of the World Trade Center hotel Tuesday afternoon.

The previous owner was Amerco Enterpreneurial Institute Inc., founded by the late Leonard Shoen, founder of U-Haul International Inc. Luke Puschnig, attorney for the LVCVA, said the 314-room hotel was closed shortly before the LVCVA took possession of the East Desert Inn Road property.

"It's closed, and we are putting up a fence for security purposes," Puschnig said. "I understand they were operating (the hotel) up to the last minute."

Puschnig said the LVCVA plans to soon demolish the building and replace it with a parking lot for the nearby Las Vegas Convention Center. Puschnig said he did not know exactly when the building would be demolished.

The sale to the LVCVA was contested by Shoen's widow, Carol Shoen, who argued the property was being sold for far less than true market value. Carol Shoen also contested distribution of the funds, which were to be distributed to Leonard Shoen's estate and his children to repay loans made to AEI.

The World Trade Center first opened about a decade ago as the Chaparral, said David Atwell, broker for the LVCVA on the purchase.

"Under the difficult circumstances this transaction was best for all concerned," Atwell said. "The hotel was never profitable and most recently was losing as much as several thousand dollars per week. I believe that the $14.1 million price was fair market value."