Cost of Le Reve subject to debate

Friday, Nov. 1, 2002 | 11:06 a.m.

So just exactly how much will the Le Reve project cost?

Media accounts on the price tag have been confusing.

When Wynn Resorts Ltd. filed a registration statement with the Securities and Exchange Commission, it outlined funding sources and uses totaling $2.56 billion. But the company's filing noted that not all of the proceeds would go toward building the Strip resort.

While some expenses are clearly a part of the Le Reve project, others are open to interpretation and numerous sources have offered their opinions on what they think the price tag should be.

For example, the company's construction contract with Marnell Corrao is listed in the SEC filing as $919.3 million -- clearly a part of Le Reve.

But another expense is $38.7 million for a corporate aircraft used to transport executives making deals key to the success of the project. Should that be part of the Le Reve expense?

Published accounts have listed price tags ranging from $1.85 billion to $2.5 billion. Matt Maddox, a Wynn Resorts spokesman, said the biggest discrepancy probably comes from placing a value on the land. The Le Reve project will occupy 55 acres, but the entire site acquired by casino executive Steve Wynn is 212 acres and eventually may include a second hotel.

Maddox said others have backed out preopening expenses associated with the hotel. The SEC filing also notes that $63.8 million of financing proceeds is earmarked for Wynn's development of casino projects in Macau.

Maddox said the figure for just Le Reve is around $2 billion, while the SEC documents list the total project cost as $2.56 billion. Steve Wynn used both of those numbers when discussing the project at Thursday's groundbreaking ceremony.

Using the $2.56 billion figure listed in SEC filings and backing out some reserve funds and some expenses for Macau, the Las Vegas Sun is using the $2.4 billion figure to describe the cost of the entire Le Reve complex.