Tuesday, March 23, 2004 | 10:49 a.m.
Having witnessed a number of redevelopment boondoggles over the last 25 years, I remain skeptical about the future of downtown.
But if Barrick Gaming, which takes over four struggling downtown casinos on Thursday, does half of what it says it will do with the properties, then maybe there's hope after all.
I don't have a Harvard Business School degree, but even I know that reinvesting in a business is the best way to help it grow and remain profitable.
For some reason the majority of Fremont Street casinos have failed to understand that principle over the years. While business has thrived on the investment-happy Strip, downtown has been stuck in the doldrums.
Could it be, however, that after all these years of operating in mediocrity, a new attitude is emerging downtown?
Like former online hotel reservation kingpins Tim Poster and Tom Breitling, who took over the Golden Nugget in January, Barrick Gaming is talking about pumping new blood into Fremont Street -- and a lot of money.
Barrick President Steve Crystal tells me the company wants to invest more than $200 million over the next five years refurbishing and reinventing its four properties -- the Plaza, the Las Vegas Club, the Western and the Gold Spike.
That figure might be considered a pittance on the Strip. But when was the last time you heard such an amount bandied about by a downtown casino company?
If nothing else, Crystal has the right attitude.
"Longtime residents tend to look at some of the missteps downtown," Crystal said. "We chose to focus on the positive things that are happening downtown."
The key to Barrick's ambitious plans is the Plaza, which sits on land next to the city's much-hyped undeveloped 61 acres.
Seven undeveloped acres on the Plaza property also lead up to the site of a planned regional transportation center, designed to spearhead efforts to bring visitors downtown. Within three years the center is expected to be the downtown hub of the monorail, a public bus service and maybe even an Amtrak passenger railway.
If all goes well the seven acres will become the gateway to the Fremont Street Experience, and Barrick Gaming has no desire to miss out on this potential windfall.
It's looking to spend tens of millions of dollars expanding the Plaza and creating a retail corridor with an old-time Las Vegas theme that will link the property to both the transportation center and the city's 61 acres.
The best part of all of this is that there is potential for Barrick's enthusiasm to catch on along Fremont Street. Poster and Breitling already are bringing big-name entertainment back to the Golden Nugget. And when Binion's Horseshoe reopens next month, it will be run by Harrah's, one of the most experienced casino operators in the world.
Then there's Boyd Gaming Corp., downtown's reigning entrepreneurial leader, which is not likely to sit back and watch the others move in on its territory without a friendly fight.
But before we get too excited, we should remember that companies like Barrick Gaming have talked up a storm about downtown before, only to see their plans fall by the wayside.
It all comes down to something Jerry Maguire would say -- "show me the money."
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