Station, MGM MIRAGE fighting South Beach plan

Tuesday, March 5, 2002 | 10:34 a.m.

Two major casino companies are appealing the approval of a 460-unit hotel-casino and timeshare property on the southeast corner of Tropicana Avenue and Industrial Road.

Station Casinos Inc., the largest developer of neighborhood casinos in Las Vegas, and MGM MIRAGE, one of the largest megaresort operators in the city, are objecting to a proposed art deco-themed property known as the South Beach resort.

Station, which owns the Wild Wild West hotel-casino across the street from the site of the proposed South Beach development, opposes the development because of the increased traffic flow it would produce in the area just west of Interstate 15 at Tropicana Avenue.

MGM MIRAGE, which has two properties fronting Tropicana Avenue just east of I-15, has similar objections.

"We're not opposed to the activity, just the intensity of the activity," said Station Casinos spokeswoman Lesley Pittman. "We feel they're trying to put 10 pounds of stuff into a 5-pound bag."

"We have raised objections to this application," added Alan Feldman, a spokesman for MGM MIRAGE, which operates the nearby New York-New York and the MGM Grand hotel-casinos. " We believe that it proposes construction of too large a resort hotel and a timeshare facility on far too small a tract of land."

The Clark County Planning Commission unanimously approved the $115 million South Beach proposal submitted by entrepreneur Marvin Lipschultz, who currently operates a 150-room Howard Johnson hotel, an International House of Pancakes franchise and a 5,000-square-foot casino with 57 slot machines, known as the Golden Palm, on the land.

Lipschultz's holding company, Gold Rush Casino & Hotel LLC, won approval for the 24-story hotel and timeshare development Feb. 7. That approval was appealed to the Clark County Commission, which serves as a zoning variance appellate board and will hear the matter Wednesday.

Lipschultz, who met individually with Commissioners Bruce Woodbury, Chip Maxfield and Myrna Williams Monday, sees Station's attempt to intervene as an effort to curtail competition.

Barbara Ginoulias, assistant director of the Clark County Current Planning Division, said her office has been contacted by Station Casinos and that its appeal lists "serious concerns regarding the scope of the proposed project given the limited amount of real property upon which it is to be located and the potential negative traffic implications of such a project at that particular intersection."

Lipschultz calls his plight a "David-and-Goliath struggle" and he has hired a traffic engineer to prove the proposed development would have no major impact on traffic in the area.

He said the number of hotel rooms at the South Beach would be about the same as the number at the existing Howard Johnson property and the proposed 300 timeshare units would not be detrimental because they don't generate much drive-in traffic and not every unit would be occupied all the time.

The South Beach proposal would expand the casino to 26,500 square feet for 714 slot machines, including 24 bar-top machines. It also would have 10 table games and a 10-seat sports book. The development, which also would have an 8,340-square-foot restaurant, a 24,000-square-foot recreation deck and pool and a subterranean three-level garage beneath the building, is on 3 acres.

"This place is like a fly on an elephant's back," Lipschultz said.

By comparison, the Wild Wild West is on 20 acres. An 11,500-square-foot casino and restaurant has 235 slot and video poker machines, six table games and a 75-seat sports book. The hotel has 255 rooms.

When the Planning and Zoning Commission approved the South Beach plan, it allowed code deviations in the distance of the tower from Tropicana Avenue and Industrial Road, a 30 percent reduction in the number of parking spaces required, larger signage than what is allowed and a tower height that encroaches on McCarran International Airport's airspace. Similar deviations are routinely approved for Strip properties.