Yesterday, the Las Vegas Convention and Visitors Authority announced that a board meeting will be held on Friday, February 20th. The reason for such a meeting is the popular Strip resort and its acquisition in particular.
The acquisition is estimated to cost $182.5 million. As much as $3.5 million will be given to Morgan Stanley who is in charge of the transaction. In point of fact, a great part of the sum will be spent on completing the transaction. The amount will be used for paying the respective fees and conduct surveys related to the environmental issues.
In case of receiving the necessary approval, Riviera is supposed to close doors in the middle of the summer and be completely demolished.
Instead of a casino venue, a luxurious Las Vegas Global Business District is to the located on the site.
The project is a part of a bigger one aimed at expanding the Las Vegas Convention Center.
Once every detail is completed, customers will be provided with modern facilities as well as a trade center and convenient means of transportation.
Within a few days, the Board is going to review all advantages and disadvantages of the acquisition of the Riviera and the 26 acres of land, currently owned by Riviera Holdings Corporation.
However, even if such a contract is signed, it will include a special clause, according to which the manager of the casino – Paragon Gaming, will remain in charge of the property.
Paragon Gaming and its head, in particular, Diana Bennett has been managing the casino for three years now.
A.G. Burnett, the Chairman of Nevada State Gaming Control Board, said that the members have been notified about the deal. Mr. Burnett also said that local gambling officials will work in collaboration with Paragon.
A representative of Paragon was also reached for a comment but no additional information is likely to be revealed before the upcoming Friday.
However, the demolition of the property and the closure of the venues will result in an increased unemployment rate. According to the information, more than 850 people work in Riviera Hotel.
Yet, the possibility for signing such a deal was announced last August; regular reports were issued as well but officials remained reluctant to confirm or deny any information available.
According to the clauses, included in the deal, as many as six months will be necessary for the building to be vacated. An additional period of three months is likely to be granted as well. In other words, the closure is supposed to take place towards August 20th and the announcement for the demolition itself was regarded as a really good news, which would send the esteemed Strip hotel in the past and therefore, make the competition less severe.
