Las Vegas Sun

March 28, 2024

Planned time-share tower trimmed to 492 rooms

Developers for a proposed time-share tower that would have become the tallest building on the Strip have removed the item from the Clark County Commission agenda over opposition from Las Vegas' largest casino resort operator and concerns that the commission would nix the project.

Orlando time-share company Westgate Resorts instead has resubmitted plans for a scaled-down project that it believes will satisfy MGM MIRAGE and win approval by the Clark County Planning Commission next month.

Westgate received preliminary approval last year for a 54-story, 750-room tower adjacent to the Showcase Mall and in front of the mall's parking garage. But MGM MIRAGE fought the project, saying it is too large to fit on a parcel that is just under one acre.

Revised plans filed with the county last month called for a 43-story tower and 688 rooms -- instantly becoming the city's tallest occupied building and edging out the Palms casino resort's 42 stories.

In an interview Tuesday, Westgate Resorts President David Siegel said final plans would call for 42 stories and 492 rooms -- removing the need to request waivers for sidewalk setbacks and other issues that previously threatened the project's approval.

"We felt we would have had a problem getting all the waivers from the first go-around," Siegel said. "Rather than go to them and get turned down, then wait to reapply ... we've made the project smaller."

The planning commission is scheduled to consider a use permit for the development May 8, which could green-light the project for later this year.

MGM MIRAGE's objections dovetailed with those of county planners, who recommended denial of the project to the Clark County Planning Commission. The planning commission in December still approved the project, though it rejected certain waiver requests by developers that would have put the tower closer to the Strip sidewalk. The Clark County Commission, which votes on disputed matters, zoning changes and other significant planning matters, was set to hear the final plan last month but it was pulled from consideration.

MGM MIRAGE said Tuesday it hasn't seen the revised plan calling for 492 rooms.

"The property is still far too small" to accommodate plans calling for a scaled-down 492 rooms, however, company spokeswoman Yvette Monet said.

The plan meets all county planning requirements, said Siegel, who rebuffs rumors that MGM MIRAGE has derailed the project.

"There's nothing for the commission to object to," he said. The only reason left to fight the plan would be for competitive reasons, he said, and "I don't think that's a valid protest."

MGM MIRAGE operates the nearby MGM Grand resort and has announced a joint venture with condominium developer Turnberry Associates, also of South Florida, to build a "condo hotel" complex behind the resort.

Potential competition isn't a factor, MGM MIRAGE officials say.

MGM MIRAGE raised similar concerns a year ago when it fought another time-share property and casino hotel project on the southeast corner of Tropicana Avenue and Industrial Road.

The resort giant -- which operates the MGM Grand and New York-New York resorts off Tropicana and east of Interstate 15 -- opposed the development because of the increased traffic flow it would produce in the area just west of the freeway.

Westgate has for years sought a site to build time shares in Las Vegas. In 1998, Siegel dropped a $15.6 million bid on the former Debbie Reynolds Hotel & Casino. He claimed the price for the bankrupt property, now called the Greek Isles, was too much.

The Orlando company later bought a condo complex on Flamingo Road out of bankruptcy, renaming it Westgate Flamingo Bay. The project is successful and demonstrates untapped demand for time-share units in Las Vegas on a larger scale, Siegel said.

"We're not a fly-by-night company. We're doing very well in Las Vegas and we're committed as strongly as we were before."

If the project wins approval, Siegel said his company intends to announce another time-share project in town.

Westgate Resorts, billed as the largest privately-held time-share developer in the country, generated $400 million in sales last year. It is known for clustering large projects that dominate their markets.

In Orlando, Westgate is building a time-share complex that will eventually offer 5,000 units and will be adding another 500 rooms to a separate 1,000-unit complex.

The company typically doesn't propose developments that are less than 1,000 units each, Siegel said.

Siegel said he will make an exception for the Las Vegas Strip.

"I've had many offers to build it in other places," he said. "But this is where I want to be."

The company has land owned by Showcase mall operator Makena Entertainment under contract to build the site. It has also leased a total of 11,000 square feet of space inside the mall for use as as management and sales office.

Westgate officials say the tower would divert hundreds of new visitors each day to surrounding casinos -- people who generally stay longer and spend more than typical casino customers. The tower also could generate millions in sales for casinos in the form of perks to entice potential time-share owners. It would employ about 1,000 people, adding to a regional workforce of about 300.

The company is also known for developing "themed" resorts. The new plan would still retain a proposed sailboat design and an interior that evokes Miami's hip South Beach neighborhood.

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