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Fontainebleau Is A Goner

By Chuckmonster on Wednesday, 12th October 2011 1:51pm
  » filed under Las Vegas  comments: 25


Sahara Las Vegas Corporation, owners of the old Wet N Wild plot (not Sahara, which is owned by SBE Entertainment) have petitioned the county to place a small construction trailer and a temporary power pole jammed into the south east corner of the property 10 feet from the property line instead of the usual 50.

Big deal, a construction trailer. It gets better... they've also filed a request to use the remainder of the property for "freight staging." But what kind of freight could they be staging? Incoming? Outgoing? Both? The options are three:

1) Fontainebleau construction is restarting and Wet N Wild will again be used for staging area. (99-1)

2) SBE Entertainment is renting the Wet N Wild plot for a Sahara demolition staging area. (40-1)

3) Fontainebleau is on the verge of being dismantled and sent off for scrap. (3-1)

Recent filings from Icahn Enterprises L.P. show that their metals portfolio has seen a profit delta of 10%, 39% sales growth YoY 2010/2011. Cost of materials has risen 40%. Fontainebleau was built using 70,000 tons of structural steel1. When penciled out at recent steel commodity price of $900/ton, the reclamation of these 70,000 tons of steel puts $63,500,000 worth of already paid off assets into Icahn Enterprises L.P.'s metal portfolio. The timing makes good sense as German steel industry issued warnings about future supply shortages. Toss in the copper piping, recycled glass and all the other stuff they can strip from the building and you can easily see how Icahn penciled a profit and never planned to finish or open the property.

If I were a betting man, I'd bet that Fontainebleau won't be there in 16 months.

Tagged: fontainebleau   


Comments & Discussion:

these could be a good thing that might happening that somthing going to happen to Fontainebleau or Sahara im glad that somthing going to happen

It sucks this place was never finished, but I hope you're right. I would be glad to see the shell go. Every time I see it in pan-outs of the strip it feels like a reminder of the recession and economic struggles. Vegas doesn't need that negativity, it's struggling enough as it is. People go to Vegas to have fun and have a vacation from reality, they don't need a reminder of harsh economic times smacking them in the face.

City Center North! Yea Baby!

Thank god. This is an eyesore (woulda been one even if finished) that blocks out the view from the Strat and currently sits as an embarrassment.

Much like that giant unfinished hotel in North Korea with the dozen rotating restaurants at the top, this beast still has it's construction cranes all sitting there, so starting things up again to tear it apart will be quite easy.

I'm hoping for option #1.

I think you've got the odds pegged correctly.

I've long felt that the place would be imploded. Back in March when I was changing hotels (Golden Gate to the Trop), the Town Car driver and I were talking about various Vegas things and when we drove past the Fontainebleau, he thought I was crazy when I said that the place would be imploded within a few years. Then again, he swore up and down that the Cosmopolitan was originally part of CityCenter and that MGM had sold it off (He didn't believe me when I told him that the original owner, who was not MGM, got foreclosed on by Deutschebank and they own the property.). You would think that folks like cab drivers and limo drivers would be more in the know on this sort of stuff than the tourists (Then again, most of us VegasTrippers aren't your typical Vegas tourist.).

I'm going to parlay the 2 & the 3, as both projects may require this unusual location request, as any other location on the property may affect one of the other projects.

When they sold the furniture to Plaza that was an undeniable sign that the owners did not want to finish the FB, now it makes me sad that they will tear it apart 'cause I know that regardless of the outcome it will take a loooong time to build something there again rather than finish what's half way done.

I think it will have to be dismantled, rather than imploded. I recall reading that it gets more for salvage if it is dismantled piece by piece.
Regardless, removing Fountainebleau would be the best thing that ever happened to that corner. It is a monstrosity that is unattractive and blocks so much of so many views.
I wonder if we can find a single person who says they like it and think it helps the valley?

The east side of the site has been used for freight staging for trade shows at the LVCC for years. A similar empty lot used this purpose at times is the empty lot across the street from Ellis Island.

But you forgot the field odds!

Seriously, at least deconstruction will bring a little extra work to the boulevard.

Now if we could only do something about that Trump abomination, which looks like Mandalay Bay if you fed it after midnight.

Hold on just a minute. I read this as a revocation of the use for trailers & storage which was originally granted in 1989. If I'm right, Clark County is just clearing the books of this old issue.

Geez, I really want to go urban exploring in this place. Hopefully I get to before they demolish it, IF they do in fact demolish it.

I'm a bit sad that Fbleau never opened, but considering it didn't I do hope it's sooner rather then later that the eyesore is removed.

One trailer and a power pole seem a little sparse for any project up or down but metal prices sure would be a factor.

Detroit - correct, this is the county revoking their previous approval, not something new.

Of course that doesn't mean that the price of the materials hasn't exceeded the building's value. That could also be true.

"...if you fed it after midnight."

Damn, how obscure of a reference is that...?

Just keep Trump out of light and don't get it wet or this will happen: http://youtu.be/fvb2bOTmmQU

reading comprehension isn't my strong suit.

@BlastPascal Best random use of a Gremlins reference... ever.

Does deconstruction of the building pencil out? It certainly is doable, just have a look at the Deutsche Bank building at the WTC.

If it isnt going to be finished then dismantling it makes sense. Did anyone believe that Ichan was going to do anything else?

This is cool - a major US corporation acting up like Bubbles from The Wire - could buy a fuck load of coke for $63m!

So....are they doing anything with the site, or will it just sit empty for a while? It's a shame as I actually thought it was a really neat looking project and a very nice looking building, but maybe I'm weird. I hope they decide to finish it once things in Vegas are humming a bit more.

If you were gonna trash anything for scrap it would be Echelon. Far easier as it's so much smaller. Taking FB down would take a very long time as you'd have to be careful to not smash up the glass or anything else.

What is the cost of dismantling this rather than just imploding it? Also, once everything is stripped and sold will they keep ownership of the site?

I say just let the honey badger at it, the honey badger doesn't give a shit about your hotel plans.

This post looks like a false alarm. I think it's more likely that they're just using the space for the SBE renovation materials.

Either way, I've got my fingers crossed that they demolish the beast. End of May I closed on a small 2-bdr condo in the neighboring Turnberry Place, and having the NW facing views restored would do so much for those units.

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