County approves three resort projects

By Liz Benston

Thursday, Sept. 4, 2003 | 11:09 a.m.

The Clark County Commission approved three major resort projects Wednesday that are expected to significantly change the face of the Las Vegas Strip over the next few years.

One of the projects, a 1,000-room hotel tower at Caesars Palace, is expected to begin construction soon. The other two -- a redevelopment project at the Tropicana resort and a 24-story resort behind the defunct Silver City casino at Convention Center Drive -- are less imminent because of additional development hurdles.

Also Wednesday, commissioners voted 4 to 2 to reject a proposed 43-story time share tower to be built next to the MGM Grand resort, a project that faced vehement opposition by MGM Grand owner MGM MIRAGE. A few months ago, the commission had tentatively approved the project, subject to completion of a traffic study.

In May, just after the commission granted tentative approval on the project, MGM Grand filed suit against time share developer Orlando-based Westgate Resorts to block the project. Westgate wants to develop the site in partnership with the proposed project's neighbor, Showcase mall. Westgate President David Siegel said today that he expects to file suit against the county as a result of the vote, which he called a political decision favoring MGM MIRAGE.

"It's mind boggling that a company like MGM can control the county," Siegel said. "We're the new kids in town and I guess we don't understand. I guarantee you we'll be in court over this. The project's going to get built."

The company has denied claims that competition from a large, new neighbor -- and not traffic concerns -- are behind the company's opposition to the project.

"While we favor responsible development in Las Vegas, we have maintained that this development is too large for the small parcel on which it's located -- and the commission agreed with that," MGM MIRAGE spokeswoman Yvette Monet said.

The company hasn't decided yet if it will drop its lawsuit in Clark County District Court against the time share developer, Monet said.

MGM MIRAGE has struck a deal with condominium developer Turnberry Associates of Aventura, Fla., to build condo towers behind the MGM Grand and across the street from the proposed Westgate time share.

MGM MIRAGE attorney Mark Russell told commissioners the project would set a "terrible precedent" on the Strip because it is too large to be located on only 2.5 acres of land.

"You still have to build a 43-story tower with asphalt and concrete and rebar," he said. "Where are those trucks going to come from? Where is the scaffolding going to go? There is no room on that site."

Approval would prompt developers to push for high-rise time shares and other high-density projects along the Strip that won't have adequate roadway access to handle the influx of traffic, Russell said. About 50 available parcels that are less than five acres each sit along the Strip from Russell to Flamingo roads alone, he said.

Russell said that because the only access to the time share would be from a right turn lane from Las Vegas Boulevard, the project could create a backup problem on the Strip.

Commissioner Yvonne Atkinson-Gates agreed, calling the scope of the project "ridiculous." The time shares would create traffic congestion and would open the door to unwieldy projects elsewhere on the Strip, she said.

Chris Kaempfer, an attorney representing the development group comprised of Westgate and the proposed project's neighbor, Showcase mall, said the time share wasn't requesting any height waivers, sidewalk setbacks or any of the other deviations typically obtained by major resorts such as the MGM Grand.

The denial comes after months of delaying a vote on the project. The time share was scaled down to 688 rooms from 962 rooms to appease county planners and because of objections from MGM MIRAGE.

"I don't know what project ... would be satisfactory to the MGM (Grand) except perhaps no project," Kaempfer told commissioners. "I don't know what else we can do to be compatible on the Strip."

One of the two commissioners who voted in favor of the project was Mark James. Denying the project outright sets a bad precedent by limiting how developers can use an ever-decreasing amount of available land on the Strip, James argued.

"They sell this property by the inch and every effort is made by everybody to use this extremely expensive real estate in every way they can," he said. Though both sides have a fair argument, county planners and traffic experts recommended approval of the project, he added.

Caesars tower OK'd

Commissioners approved a Caesars Palace hotel tower that also includes a 175,000 square-foot building housing retail, restaurants, wedding chapels and convention space at the resort. The project replaces a previously planned 864-room tower at Caesars Palace that the commission had approved in February 2001. Caesars owner Park Place Entertainment Corp. had put that tower on hold after the Sept. 11 terrorist attacks.

Now that the economy has improved, the company has resurrected the project, though it has yet to make a formal announcement about the tower or to disclose more details about its appearance and when it is expected to open.

What is known is that the tower will have direct access from Flamingo Road, which marks the south property line of Caesars Palace. It also will feature a porte cochere entrance with driveways that match those of the Bellagio, plans submitted to the county show.

The project was approved with waivers that would allow construction within power easements, a reduction of setback requirements from the street and an encroachment into airspace over limits set by the Federal Aviation Administration. The deviations are typical of other resort projects along the Strip.

Tropicana progresses

Commissioners also approved a tentative plan by the Tropicana to redevelop its resort. The plan would include partially demolishing and rebuilding the property to include a 2,550-room addition. The south portion of the resort will retain 820 hotel rooms and 116,000 square feet of building space, while the north end would add space for a new total of 3,370 hotel rooms and 836,000 square feet of building space.

Tropicana parent Aztar Corp. of Phoenix has said it hasn't yet decided whether to move ahead with the redevelopment plan, which will be contingent upon completion of a design and construction report by the first quarter of next year.

A variety of issues, including the project's potential cost and the health of the gaming industry nationwide, also will factor into that decision, Aztar executives have said. The company has for years discussed the possibility of remodeling the Tropicana to leverage its choice location at the south end of the Strip and its proximity to newer, more luxurious resorts such as Mandalay Bay.

The proposed parking garage would be set further back from the Strip than its existing parking garage. The Tropicana's eastern neighbor, the San Remo resort, expects to apply with the county for a larger sign if the proposed garage is built because it would block the San Remo's existing sign.

The Tropicana received approval for several new signs of its own, including two 24-by-45 foot signs along the Strip, seven 20-by-30 foot signs along Tropicana Avenue and the Strip and three 30-by-60 foot signs attached to the parking structure. Primary access to the rebuilt area of the resort will be from Tropicana Avenue, with secondary access from Reno Avenue, plans show.

Deviations include reducing required parking by 25 percent, reducing setback requirements from the Strip and from Tropicana Avenue, and permitting encroachment into airspace.

Brugnara resort approved

Also approved was a plan to build a 24-story, 304-room resort at Convention Center Drive near the Strip. The resort would include a 33,174-square-foot casino floor as well as a nightclub, two gift stores, a pool area, snack bars and a gourmet restaurant.

Luke Brugnara, the San Francisco office building developer behind the project, is a controversial figure who was refused a Nevada gaming license in 2001 after regulators probed a variety of issues including alleged accounting irregularities in Brugnara's financial records.

Licensing issues weren't raised before commissioners, who were urged to consider redeveloping the industrial-looking corridor that links the Las Vegas Convention Center and the Strip into an upscale,pedestrian-friendly avenue something like Beverly Hills' Rodeo Drive.

The way the area is now, tourists "just want to get out of that area as fast as they can," Las Vegas architect Lee Linton told commissioners. Linton has designed projects along the Strip since the 1950s and is crafting the resort for Brugnara, who envisions for the site a playground for young adults called "Tycoon."

"Maybe this is the beginning of a reformation on that street," Linton said.