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Mona Shield Payne / Special to the Sun
MonteLago Village at Lake Las Vegas.
Wednesday, Feb. 10, 2010 | 2:05 a.m.
The Ritz-Carlton at Lake Las Vegas.
Ritz-Carlton at Lake Las Vegas
Sun Coverage
Related stories
- Ritz-Carlton Lake Las Vegas to close in May (2-8-2010)
- Creditors challenge Lake Las Vegas bankruptcy plan (10-6-2009)
- Judge denies request to dismiss Lake Las Vegas case (10-2-2009)
- Current, past owners spar in Lake Las Vegas bankruptcy case (9-21-2009)
- Council briefed on Lake Las Vegas bankruptcy (9-15-2009)
- Lake Las Vegas proposes bankruptcy plan (9-5-2009)
- Lender sued over Lake Las Vegas loans (9-3-2009)
- Lenders to foreclose on Lake Las Vegas’ last golf course (6-29-2009)
- Judge approves bankruptcy for Lake Las Vegas golf course (6-29-2009)
- Another golf course to close at struggling Lake Las Vegas (6-25-2009)
This week’s announcement that the Ritz-Carlton at Lake Las Vegas is going out of business has raised concerns that the hotel’s closure will have a ripple effect on neighboring merchants.
Henderson Mayor Andy Hafen said he expects shops and restaurants at MonteLago Village Resort will feel the impact of losing the 348-room luxury hotel.
Businesses have told him in the past they are holding their own, but just getting by, he said.
“Certainly we are concerned,” Hafen said of the hotel’s closing. “The biggest concern we have is for the employees and their welfare.”
The Ritz-Carlton, a fixture in the resort community since it opened in February 2003, announced Monday it will close on May 2.
“Our owners, Village Hospitality, decided they could no longer fund the hotel,” Ritz-Carlton spokeswoman Vivian Deuschl said on Monday. “As a result of that, we can no longer operate the hotel without adequate funding.”
A number of shops refused to comment Tuesday about the Ritz-Carlton announcement and referred calls to MonteLago Village manager Maurice Talley.
“We’re very sad that the Ritz-Carlton employees are no longer going to be employed and it may have some residual effect, but it’s too hard to quantify,” Talley said.
Talley said he didn’t know how much of MonteLago Village Resort’s shop and restaurant traffic comes from the Ritz-Carlton.
At least one shop owner, however, said she doesn’t expect the closure of the hotel to have a major impact on her business.
Marianne Freeman, whose home furnishing and accessories shop, Tesoro, has been at Montelago Village since 2003, said most of her customers are people who live at Lake Las Vegas, not hotel guests.
“Certainly the closure will affect my business to some extent, because the Ritz has always brought in visitors from across the county, but it won’t have a huge impact,” Freeman said.
Jennifer Morton, marketing and public relations director for Casino MonteLago, predicted that business for the casino will remain steady without the luxury hotel.
“We have a strong local base, so it’s just going to be business as normal for us,” Morton said.
Hafen said he recently met with the general managers of the Ritz-Carlton and Loews Las Vegas, who told him the properties were struggling but doing what they could to keep their doors open.
The hotel’s closure will leave about 350 employees out of work, but Deuschl said efforts are being made to relocate them to other Ritz-Carltons, Marriotts and other hotels in the Las Vegas Valley.
Hafen said the Ritz-Carlton pays about $129,000 in annual property taxes.
Without the Ritz-Carlton, Loews Lake Las Vegas and the MonteLago Village Resort will be the only hotels in the development.
“I don’t think the residents of Lake Las Vegas will be affected much,” Hafen said. “As far as our tourism in Henderson, it will make a little bit of dent, but it’s one of many properties we have here in the city.”
In addition to the hotels, restaurants, shops and casino, the 3,600-acre Lake Las Vegas development, located 20 miles southeast of the Strip, includes more than 1,600 residential units.
Lake Las Vegas is now in bankruptcy, burdened with $728 million in liabilities amid the worst real estate downturn in memory.
According to Henderson City Attorney Elizabeth Macias Quillin, Lake Las Vegas owes about $25.7 million to the city of Henderson in Local Improvement District financing and assessments. The city has three Local Improvement Districts in the Lake Las Vegas development.
Sun reporter Erin Dostal contributed to this report.
Jennifer Morton is full of it. The casino has shut down the gambling pit Monday to Thursday days. The place is dying. I was there yesterday, and it was a ghost town. Tighten the machines all you want, but there's no way 150 or so employees can be supported by slot machines and food. They have cut the comps and points to their few locals, and they are not coming anymore.
Face it, CML, you're dead. End of story, good bye...
I was thinking the same thing. I think the LVL tourism industry is DOA. They may get a boost when the new bridge opens, but they'd have to promote the hell out of it.
I'd assume that the Ritz is trying to sell the place, but there isn't a word about that in the article.
I laughed at the "strong local base" comment. I guess people have to dream(or lie in the case of PR reps).
Obama is jumping up and down in joy.
Now there are fewer places in the Vegas valley for citizens to blow their cash on.
You go, Mr. President!!!!
Let's just raise taxes on the other hotels. That should fix it.
It's a shame, but due to poor business practices, bad economy, these businesses are going to fail. NO BAIL OUTS ! this is how the free market system works. It's a shame that the carpetbagger corporations who own these hotels don't give a damn about our economy here in Nevada, they only care about their bottom lines. Good riddance!! Hopefully these deserted places will end up in locally owned hands next round, if there is one..
Also I might add, Where are our government leaders throughout all of these closures ? Why aren't they out there trying to give incentives and do everything possible to convince these corporations to remain in business thus saving the 350 jobs which will be lost here? They are incompetent so called leaders who will be voted OUT of office !!!!!
listen, i worked in marketing / advertising for over a decade and i guarantee you a p.r. person on the titanic would be saying it was an "exciting adventure".
just wait until city center starts laying people off. maybe not today, maybe not this week, but soon they'll start laying people off and it is going to be BAD for vegas.
What are the odds of Henderson collecting any of the $25.7 million Lake Las Vegas owes in Local Improvement District financing and assessments?
Will Henderson residents have to makeup the shortfall?
You tell them SgtRock, I'm impressed you know that Obama caused all the Vegas areas problems. If you had any clue, Obama's comments have nothing to do with the problems of the Vegas area! You and Stevem related?
His first remark did cause some harm.
His second remark did not cause harm but reminded us that he is an idiot.
He did not have to use the words "Vegas" to make his point in the first remark or the 2nd remark.
It is never good to have leaders uses the words "Vegas" in a negative context.
But if we take him at his word, then Yes he is very happy for fewer people are coming to Vegas to blow cash.
You go, Mr. President!!!! He is so cute with his teleprompter and all.
Sgt Rock
Normally I respect your opinions, but today they are just plain assinine and stupid to put it bluntly. The Ritz and the casino are hurting because it is off the Strip and unless there was a specific reason, ie a convention, it was not what people wanted as far as Vegas went - the Strip is where "the action" is. Yes, locals went there (I loved the whole place = shops, casino, the hotel) but the general public did not. It was basically a locals joint that since the beginning, locals could barely afford. It's the Ritz for goodness sakes!! Not Santa Fe Station or the M Resort!! The Ritz has always been the cream of the crop in hotels. I looked into staying there for a weekend one time back in 2006 and the room rates were way over $300 a night!! Yeah, that's really affordable, isn't it?
Obama's first comment did damage to the Strip, and just one hotel - the Wynn. So wise up and quit blaming the president for something only the suits in the corporate offices of the casinos created, not his words.
SgtRock it sounds like you almost believe the things you say sometimes? Maybe you better step back from the hate filled propoganda/money machine that is causing your blood to boil. In the mean time, finding someone to blame might be easier if there were only one to blame. There is plenty of blame to go around on both sides of the aisle but if it makes you feel better to zero in on one, then rant away......Life will be much better for you and others who think likewise when a republican president has been seated in 2013. Oops....thats a long ways away! Well I guess you have 3 more years to get your licks in.
You guys are arguing this point: Nobody listens to what Obama says therefore his words has no conquesences.
Ok.....I get it.
Nobody listens to the blowhard.
I take that 411 and file it.
The whole Lake Las Vegas business plan was based on the faulty assumption that the Clark County economic boom that began in the late 80's would continue forever. Nobody assumed that a neighborhood built for the super-rich: gaming, media, entertainment and real estate moguls would flat-line in this area. LVL is off the Vegas radar screen, it's a high-end locals resort. The developers rode the last 3 or 4 years of a wave that was destined to end. Like someone else above said, watch for the layoffs to start at City Center in the next year.
Rofl...the teleprompter comment.
Who doesn't use a teleprompter? I'm surprised the anti-teleprompter movement has gained so much traction.
Me? I'm starting the "stop writing talking points on your hand" movement.
Don't know about others, but we haven't visited LLV since concerts stopped performing there -- however the memories of Heart, America/Christopher Cross, Seal, Andre Bocelli etc. will forever remain cherished moments shared in a uniquely pleasurable setting.
Thanks - may LLV's death be quick rather than a prolonged one of suffering.
:-(
reply to Molly M: Is it plausible that the city has a priority lien on the property and will collect in time?
Sgt Rock, your an idiot! Both comments by President Obama were related to being responsible and reasonable with your money and the money of the tax payers (are you a tax payer?). Get real. You sound like the Governor and the drunk mayor. You related? Yes, they are both idiots as well.
I think they should turn it into an upscale nursing home, or assisted living facility.
Lake Las Vegas and everything in it was bound for failure before it even opened. It's been a dead zone for years due to its stupid location. End of story.
"Sgt Rock, your an idiot! Both comments by President Obama were related to being responsible and reasonable with your money and the money of the tax payers (are you a tax payer?). "
Let me get this straight.
You live in Las Vegas and I assume that either you or your family are dependent on the local economy doing well.
And you find it OK for the President to say that spending money in Las Vegas is unwise.
Let me see.......who is the idiot here??????
Sad to see it go. Have stayed there several times, but occupancy was always floating around 20-30% unless a convention or wedding was going on.
$350 a night for a room plus it was just too far from the strip and lacked excitment. Montelago has the atmosphere of a seniors bingo tournament. $450 for a tee time? Really?
Will miss the electric boats and free concerts. It is still the most visually stunning piece of real estate in Las Vegas.
I'm sure someone else will open this property back up if and when the economy improves. I think you could do one hell of a resort with activities on the lake, golf course etc. It's too valuable to be boarded up..
the ritz had little to do with the strip. very few people that stayed at the ritz were in a hurry to get to kahunaville and get one of those "beer footballs" down on fremont.
this is wealthy people not spending money. it's both economical AND political. they've lost money like everyone else and our doofus leader wants to turn them into ATM's for his voters.
nobody that has money to stay at the ritz is going to stay home because idiot obama made a comment or two about vegas.
please, fellow conservatives...stop throwing that "obama said to stay away from vegas" one out there. it makes us look stupid.
the people that would actually NOT come here because he said so are $9 and $10 per hour workers and they aren't ritz people. they're not even triscuit people.
Mayor Hafen...paaahhlleeeaassseee...you are blowing lots of cash this very momment widening the road to Lake Las Vegas...stop it!...I know, I know, Mayor, it was free money from the Federal Government and didn't cost the citizens of Henderson one penny...uh huh...maybe you can the get the Fed to send you a check for property taxes too...I have an idea, Mr. Mayor - make good business decisions regardless of your revenue source...good luck...
SantiagoJason, the free concerts and electric boats are still going to be there. The fact that the Ritz is closing will not change those activities. The weekend concerts are on hiatus during the winter and should begin back in the spring and last through November.
A friend of mine in the hotel industry stated rumors of a possible Starwood rebranding. While there are several Marriott products in Nevada for people to use their points, there is only 1 Starwood.
I agree with environprotector that the property is too valuable to be boarded up and the Ritz was not taking full advantage of the lake and the endless actitives possible.
Thank you, Bitwise. You are correct.
this place was a disaster from the beginning idea on paper---lets build half million dollar track homes on the edge of old dumpy east henderson and then dam up the toxic vegas wash to make a toxic lake and build another overpriced golf course around it--and then just for kicks lets build two unneeded hotels 35 minutes from the strip and charge twice what everyone else is charging because its a "ritz". All around that area, no matter how much money you spend as soon as you come out of you gated community you are in trashy "old" henderson! Thats not to say i don't go to old henderson--I fit right in there actually---but I wouldn't build a half million dollar home or a resort at its doorstep.
Why would the rich want to hang around a fake lake, like Lake Las Vegas? When I saw it, fake lake came to my mind. Rich peope want the real thing like that body of water next to Malibu. Turning the Ritz into a nuring home is a real good ideal. I guess stocking fish in the lake will not work cause it is so toxic.
.
Part 1
For those interested in seeing how the two parties in control of the Lake Las Vegas development company plan to operate what remains of the development company's real estate assets, and complete infrastructure in Phase II, go to:
http://www.kccllc.net/llv
Click on tab at left called Court Documents
Click on the title of Court Document 1946, which is the proposed Disclosure Statement for the First Amended Chapter 11 Plan for the combined group of debtor development companies. The Chapter 11 Plan is jointly sponsored by the Unsecured Creditors Committee and the bankrupt development companies, with economic support from Credit Suisse.
The bottom lines, in that Disclosure Statement summarizing the plan, is that:
(1) The group of lenders, led by Credit Suisse, who made loans to the development company and its affiliates will end up owning the vast majority of the reorganized development company;
(2) The pre-bankruptcy mortgage lenders, also led by Credit Suisse, will own a small percentage of the reorganized development company, with an option to buy more of the company if its value increases;
(3) Fred Chin and Atalon Group will continue to manage the reorganized developer on behalf of its new owners;
(4) A trust for the creditors will sue the former owners of the development company, controlled by Ron Boedekker, Sid Bass and Lee Bass, under legal theories forbidding operating of a company in an undercapitalized state [The same kind of lawsuit the unsecured creditors of Station Casinos want to pursue against the Fertittas and Colony Capital.]
(5) The unsecured creditors who do not have liens on real estate will get 4% of what is owed them in cash, and a small cut of any money won in the lawsuit described above.
(6) The vast majority of any money won in the lawsuit described above will go to the pre-bankruptcy mortgage lenders.
Part 2:
(7) The infrastructure improvements to Phase II of Lake Las Vegas will be gradually completed. Credit Suisse will lend the reorganized debtor the money to "front" those construction costs. The presently existing mechanics lien claimants relating to those improvements, and Credit Suisse, will get paid by the City of Henderson from the Local Improvement District bond money the City holds, when all work is completed and when all mechanics liens are released.
(8) The three golf courses have been foreclosed on by their mortgage lenders. The reorganized developer will having nothing to do with the golf courses. The owners of the golf courses will do with them what they want, outside of the supervision by the bankruptcy court.
(9) The reorganized development company will continue to pay its share of the assessments to the master property owners association.
(10) The disclosure statement fails to say when and how delinquent real estate taxes and Local Assessment District taxes will be paid.
(11) Since the shopping village, casino, and hotels are NOT owned by the reorganized developer, those properties owners (or mortgage lenders who foreclose) will do with them what they want.
On February 16th Bankruptcy Judge Riegle will hold a hearing to determine if the proposed Disclosure Statement is technically adequate, in terms of its truthfulness and thoroughness. If she decides it is, the creditors of the bankrupt developer will vote on the proposed First Amended Chapter 11 Plan.
If a majority in each group of creditors votes to approve the plan, on April 13th and 14th Judge Riegle will hold a hearing and potentially approve that First Amended Chapter 11 Plan, and the deal terms described above will go into effect.
I stand corrected--thank you bobby for your enlightenment. Its been so long since i've followed this fiasco that i've forgotten some of the facts in my old age. I went out there looking at foreclosures last year but the banks and remaining owners are still in denial about the worth of their homes. It is a beautiful community and golf course--real shame. I noticed a ton of foreclosures at the calico ridge just outside the entrance and a bunch of empty strip shopping centers--completely vacant at different areas around old henderson. last week i was at the top of hill at end of boulder highway and same thing--a bunch of empty overbuild strip shopping stores--i mean a bunch. They overbuilt this area like crazy. Everywhere you are over there that is new is nice while your in the subdivision, but then you come out into old henderson and your right back into trashy old henderson, some things will never change.
Writer Purgatory has it spot on. Why are they building a road expansion on Lake Mead Parkway that ends at Lake Las Vegas? The roadway now never has traffic problems, yet they're expanding it. Why? The expansion runs basically from Boulder Highway to LLV, surrounded by white trash trailers most of the way.
Oh, yes, I forgot there is Tuscany, a sorry high end development built on top of toxic waste by Jim Rhodes, the bankrupt developer and his lovely wife, Glynda Bumpers.
To paraphrase Jay Leno "What was the city thinking?"
The Village at Lake Las Vegas is privately owned and has a merchant occupancy of 90%, certainly isn't a ghost town as some would have you believe. the lake infrastructure is sound for another 20 years, the three homeowners associations, the Village, Viera and Luna, the latter which are condos owned by invididuals are some if not the best capitalized in the valley. Ask your real estate agent. Entertainment will begin again soon in the spring and extend to the end of the year. Not sure where this toxic lake idea comes from, the wash runs under the lake, there are three triathelons a year there. Too bad the Ritz went under, someone will rebrand it and come in with more reasonable prices. I am optimistic about the place.
Last one out of lake las vegas turn out the lights.
I live in california and own a vacation house in las vegas. I come over to bicycle ride and other recreation. On every vist for the past two years I headed out to lake las vegas but I have always been disappointed in what recreation is provided in that area. There are few stores to shop, a limited number of eating places and an absence of many things to do. Yes, there are the golf course--but for the price of a round of golf I can pay my country clubs for six months at home.
If someone takes over the area, make it interesting for the people to want to come to. OK, there is gambling but who is going to drive from downtown to gamble when there are numerous clubs on the strip.
It's a shame to hear this about Lake Las Vegas. I rented a car while in vegas on vacation a few years ago to check out the place and thought it was nice. But it was a ghost town then too when the economy was better. I was the only person eating in some subway type restaurant by the lake.
I think the City Center is a monstrosity. Why didn't the Bellagio expand its theme and the Monte Carlo expand its theme sharing an artificial lake inbetween both properties, a French Riviera on one side and an Italian village on the other? A real Lake Las Vegas. That would have been better then the plain glass towers I have to look at while by the pool at Bellagio.
I still can't believe they didn't have Terribles in front of their name cuz we all know Terribles sucks.
Las vegas is a resort. As such it is the recipient of people's "extra money". With the collapse of real estate and the stock market, the baby boomer generation has been put in a bind. Retirement is fast approaching, but the nest egg has shrunk. The obvious choice is to go into super-saver mode. So long as the boomers' retirement plans are underfunded the economy of places that rely on people's "extra money" will be hurting.
High end properties, more than any other, depend on the boomer demographic and they will be hurt most of all.
This is bad news for (sterile) City Center and other ritzy places.
The LLV closing is the canary in the coal mine. We had been going to Vegas more than once a year since 1982.Lately we barely go once a year and may not go in 2010. The computer controlled payouts have finished me off.Instead we can spend our money seeing other parts of America,like Seattle/cruises . The Vegas we loved is gone.Aside from gambling spreading to other parts of the country, the greedy computers(operated by greedy corporations) coupled with the almost total ongoing loss of the American middle class (all the good jobs have gone offshore in the past 30 years),the collapse of the economy,and the growing Western drought will turn Vegas into a desert again. After all, all the "super-rich" cannot fill your 140,000+ rooms on a regular basis. IT WAS ALWAYS THE MIDDLE CLASS. And Vegas out priced itself !! Its the "perfect storm".I enjoyed the ride...
Cynical-Thank you for the bankrupcty summary. It sounds like a good plan. If agreed upon. Especially that Credit Suisse will continue to contribute to the master dues and completing the infrastructure. I wonder what will be done with the property slated to be the 4th golf course? Bike trails, a park, tennis and pickleball courts would be nice. Tester had some nice insight as well.
I also just learned something from a friend in the industry that may or may not have already been discussed. The Ritz Carlton only manages the LLV and all other properties. They don't own any of the buildings they are in. They only manage all of them. It was Duetche Bank that pulled the plug on the building. Village Hospitality, isn't even a real company. It's an arm of the bank. Makes you wonder why the bank owned this at all. Likely just to sell it? If Duetche pulled out, the Ritz has no control and has to cease their operations as well. No building, no management contract.
It also makes you wonder if Deutche did this drastic measure to end/get out of the Ritz contract? So, Duetche could get another hotel brand in the building instead? Deutche likely needed a hotel with higher occupancy to make it attractive for a prospective buyer. In this economy, no high-end hotel like the Ritz is doing well enough to make it attractive to sell. I smell politics here. Which is too bad for those losing their jobs. It was also Deutche that stopped funding the Fountainbleu too.
Just thought I would convey the info that I learned.
Last one out of "Las Vegas" hit the neon light switch - Ghost town by 2025
somebody please close caesars palace...
harrah's is the biggest thief is town!!!
STOP HARRAH'S NOW!!!
INDICT D.A. ZADROWSKI!!!
INVESTIGATE THE GAMING CONTROL BOARD!!!
WAKE UP AMERICA...
One of the biggest issues with Lake Las Vegas is the location. I mean its GHETTO all the way out there. Take a drive down Lake Mead Blvd from Boulder Hwy and you'll see what I'm talking about.
We lived in the area before we got the H out there because it is nothing more than Section 8 and shacks. And Henderson just keeps building more and more low rent apartments where? Burkholder, Lake Mead BLVD, Warm Springs, Racetrack, the whole area is crime ridden. So sad....
Who in there right mind will drive all the way out there to pay $300+ a night, and take your life into hands? We left because it was getting so bad, the crime was ridiculous. Its all about Location, Location, Location nowadays. If I owned a house out there, I'd sue the city for turning that whole area into a dump.
Wasn't it the Bass Bros from Texas, Bush's buddies, that got this white elephant going in the first place? Blame it on the bossa nova or Obama.
why not blame it on Harrah's...the biggest thief in town!!!
i just hope this beautiful resort does not reopen as a harrah's property...they've ruined so many lives and properties already...
rwal2222 is spot on about the whole area being a dump. LLV is built across the entrance from a closed giant potassium mine, which is nasty stuff. They were talking about reopening it to build-you know it, more homes. Poor Tuscany down the road is built on toxic waste, and will never recover. Around the corner on beautiful Boulder Hwy, there is a huge development to haul vile dirt from the WW2 munitions factories. Not sure if it's still working-they wanted to build 15,000 homes in a waste pit.
Hey, how come your kid has 3 eyes? Man, this is sad. Bailout now. Right Bouvier?
@stevem: "...they aren't ritz people. they're not even triscuit people." Nice one!
The Ritz 5-star hotel business model has to be under a lot of pressure everywhere. Let's face it, for that model to work the economy has to be humming at really high RPM's, and right now we can't even get it out of first gear.
@DavidM64: Yeh, this is more about Deutsche Bank than Credit Suisse/LLV, or are these entities in bed together and just the same thing under different names?
@BobbyG and tester: "...the lake infrastructure is sound for another 20 years ... Not sure where this toxic lake idea comes from, the wash runs under the lake, there are three triathelons a year there." Uhh, it might have been from me. I made a comment on the lake being fed by the LV Wash recently. Wrong! I do recall a recent article saying there were concerns about the diversion pipes filling up with debris, I should have remembered that.
They say they're trying to relocate employees to other properties. I seriously doubt that the other properties are in a hiring mode. Looks like the 350 will join the long lines of unemployed. A handful will get hired by someone and politicians will line up trying to take credit for "creating" jobs for those few.
Ritz customers with Ritz money supported the restaurants. I hope they (restaurants) can survive this.
Open the lake to the public and charge a usage fee much like the entrance fee at Lake Mead.The fees they charge can be used for the upkeep and maintenance of the lake. I would rather spend time at Lake Las Vegas than Lake Mead, Lake Las Vegas has far better amenities than Lake Mead. People can enjoy the lake and the surrounding businesses will benefit with the increase in visitors to the area.
This is a great hotel industry article about the Loews @ Lake Las Vegas. This was not written by the Loews. It really shows how they are forward thinking to draw in more customers to their hotel.
http://www.elitemeetings.com/forums/blog...
I believe this article shows that there is still activity in Lake Las Vegas and the Loews occupancy is better than last year. Hotel guests in all LLV hotels have access to the South Shore Golf Course right now.
LLV Local also reported in the Casino Montelago article that the Reflection Bay and Falls courses have new owners and just out of escrow. I imagine they could open once the grass is no longer dormant and turns back to green. (when the temps warms up, the courses were not overseeded)