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Dive brief:
- The Clark County, Nev., Zoning Commission scrapped Las Vegas’ $5 billion All Net Resort & Arena entertainment complex last month after more than 10 years of delays and funding issues. The project had seen minimal construction progress to date, limited to grading and site preparation work.
- Plans of the complex, located behind the Sahara Las Vegas hotel and casino at the north end of the Strip, was to include a 22,000-seat venue, a 44-story hotel and numerous retail establishments. The project’s cancellation removed its status as a preferred site for a potential Las Vegas-based NBA franchise in the future.
- Despite the 7-0 unanimous decisionCommissioner Tick Segerblom left the door open for the project to be restarted if the site’s developer, Las Vegas-based Dribble Dunk, can prove its claimed financial ability.
Diving knowledge:
Work had already begun, including billboard removal, demolition and site preparation work, said Chris Kaempfer, a Las Vegas-based land use and zoning attorney representing the All Net project. during a November 21 commission meeting.
Construction crews have also already begun mobilization for excavation crews as well as full grade operation, said Thomas Selvaggio, All Net’s vice president of construction.
But problems with financing the multibillion-dollar project continue to hamper any progress, Clark County Commission Chairman Jim Gibson said during the meeting. Additionally, Las Vegas Paving Corp., a local heavy civil construction company, has a five-year lien against the property worth $17.5 million for unpaid work, according to the county meeting.
“What we really expected, with the extra time, [was that] there would be money in accounts available for the applicant to start paying things,” Gibson said during the meeting. “We’re still hearing that there’s money, but it’s not below [All Net’s] control, is under the control of others.”
A representative of the Meruelo Group, which exploits the Sahara, supported the decision to stop the project. Andrew Diss, Meruelo’s senior vice president, said the site has not been properly maintained and the lot has become a breeding ground for mosquitoes. He also questioned whether All Net has the funds to continue the project.
“Today, we’re hearing about a bank in Mexico. A year ago, we heard about a family fund in Wyoming. A year before that, it was money from the Middle East that would go through Switzerland and they would come to the United States,” Diss said during the meeting. “We’ve heard this song and dance before.”
Other delayed projects
Along with the All Net Arena project, other construction starts in Las Vegas have also had hurdles related to project financing.
Shopoff Realty Investments halted construction at approx $550 million Las Vegas Dream Resort in March due to construction financing issues, Bill Shopoff, its president and CEO, said in an email to Construction Dive. This project is still on hold, and maybe not resume work until January 2024according to the Las Vegas Review-Journal.
However, progress is being made on development projects elsewhere in Las Vegas, even if it takes years. The MSG Sphere, a giant balloon-like entertainment venue east of the Strip, opened its doors earlier this summer, but not after nearly doubling its original estimated cost of $1.2 billion up to $2.3 billion. The highly anticipated Fontainebleau Las Vegas will also open on December 13. almost 15 years after its inauguration in 2007.
In other professional sports news, MLB’s Oakland Athletics signed a buyout agreement 49 acres of land near the Strip with plans to build a $1.5 billion stadium. The A’s are reportedly looking to raise financing through a public-private partnership with state and city officials.
All 30 team owners last month approved the transferaccording to NPR, which said the new stadium is expected to be ready by 2028.
