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Owner, backers of Boulder City hotel eye redevelopment money for bailout

By Jean Reid Norman (contact), Jeremy Twitchell (contact)

Saturday, July 4, 2009 | 2 a.m.

Debates about the best way to use redevelopment money arose at the Clark County Government Center and Las Vegas City Hall over the past several months. Now it’s a hot topic in Boulder City because owners and advocates of the historic Boulder Dam Hotel are asking the City Council to use such money to bail out the hotel.

Built in 1933, the hotel hosted millionaires, movie stars and royalty during its heyday in the 1930s and ’40s, but it fell into disrepair in the 1970s and ’80s as it changed hands many times.

A group formed in 1993 raised $3 million to restore the hotel. It is now operated by the nonprofit Boulder City Museum and Historical Association, which runs a museum on the mezzanine and stores its archives in the basement.

Association President Bill Ferrence says the hotel was on its way to becoming self-sustaining until the recession. Now the hotel is into its traditionally slowest season, and it needs $60,000 to pay its bills through the summer, he said. (Ferrence is the father of Jim Ferrence, a campaign consultant who has worked for Boulder City Council members such as Cam Walker.)

The association sent letters to supporters three weeks ago asking for contributions of $1,000 to keep the hotel operating, but only about $10,000 had come in as of last week.

So on Monday the Redevelopment Agency board, composed of the five City Council members, is to consider the hotel’s request for $135,000.

The money is available, Mayor Roger Tobler says. The question is what direction the council wants to go with redevelopment money. Councilman Travis Chandler has insisted it should be used to address blight.

That would seem rule out the hotel. Tobler says an argument in favor of the hotel is that if it scales back its operations or winds up closing, that “would have a real negative effect,” particularly on downtown Boulder City.

•••

Lake Las Vegas closed its second and last public golf course, Reflection Bay, on Tuesday, a day after a U.S. Bankruptcy Court judge granted permission to do so.

The move left the troubled resort with just one golf course, the private SouthShore Golf Club.

Lake Las Vegas

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After a brief hearing that drew no objections, Judge Linda Riegle ruled in June that “there is no equity left in (Reflection Bay) and it is, in fact, a burden,” thereby meeting the legal requirements for Lake Las Vegas to abandon the course and allow it to enter foreclosure as part of its bankruptcy reorganization.

Riegle also gave the resort until July 17 to file its reorganization plan.

It was the sixth extension of the deadline. Attorneys for Lake Las Vegas said the plan is the subject of ongoing negotiations with creditors and cautioned they may request a seventh extension next month.

Lake Las Vegas, which has been going through bankruptcy reorganization since July 2008, will keep a skeleton crew at Reflection Bay to maintain it and take inventory until July 9, when creditor Carmel Land and Cattle Co. is scheduled to foreclose on it.

Like that of the resort’s other foreclosed course, The Falls, the fate of Reflection Bay remains up in the air. It is not known how long the course will sit vacant and, if it is bought, whether it will be reopened as a golf course or plowed under for other development.

Operating reports for Lake Las Vegas show the resort lost $11.5 million in May, and has lost $60.7 million since filing for bankruptcy protection.

Carmel has maintained The Falls, but it has not been reopened for play.

CORRECTION: This story was updated to reflect that the Boulder City Redevelopment Agency was to meet on Monday, not Tuesday. | (July 6, 2009)

Discussion: 5 comments so far…

By RACE_CAR_DIVA

7/4/09 at 9 a.m.

Suggest removal

The hotel is asking for our tax dollars. Should we give in to their request for a handout, or should we taxpayers request that the hotel improves their business plan?? How about the new big sign that the state put up at Von's? That sign is still diverting tons of traffic around downtown (even with the change in wording). How is that sign helping our downtown as a whole? It is not helping the historic hotel at all. More traffic downtown = more money for merchants and the city (via tax revenue). What are the leaders doing about this?
By davidwayneosedach

7/4/09 at 10:47 a.m.

Suggest removal

If they bailout this hotel they should bailout all small businesses. Is the Boulder Dam hotel really that iconic?
By LasVegas2009

7/4/09 at 12:15 p.m.

Suggest removal

So did they use all the money donated last time to finance the strip properties? Are they planning to use our Tax Money to funnel funds to the strip properties they own? This is just a big waste of tax payer money and anyone who votes to give them a dime for mismanagement should be voted out of office.
By cpo

7/5/09 at 6:09 p.m.

Suggest removal

Typical Republicans. Preach one thing, but do the opposite. Use tax payers money to support a private business because it seems to be some sort of pet project for a few City Council members and officials, give me a break ! This is why I am now a independent, Ronny would be rolling over in his grave.
By Bouvier

7/9/09 at 9:37 a.m.

Suggest removal

With regard to the Lake Las Vegas Reflection Bay and Falls Golf Courses, the report mis-stated some important facts. Per the reporter: "It is not known how long the course will sit vacant and, if it is bought, whether it will be reopened as a golf course or plowed under for other development"
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If the reporter would have checked their facts correctly, they would know that the City of Henderson will never re-zone those courses to anything but a golf course. They will never be plowed under for other developement. It's also a common fact that the courses are being maintained for foreclosure sale.. hopefully today.
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I'm constantly amazed at the gloom and doom angle of the media.