Why all the half built abandoned construction projects?

What is with all the half built, apparently abandoned construction projects near the strip? In particular, what is that giant vacant blue glass tower across from Circus Circus? Are all the abandoned projects related to the bad economy? Some of those (fairly new) structures are beginning to crumble and rust from exposure to the weather. Will they ever be completed?

 

Economy. I think you are talking about Echalon (sp?). All these projects came about dring the good times (2006ish), then when they were underway (2008ish, the economy crashed and there was no capital to keep the projects going. On top of that you had the city center, Palazzo, Encore, Cosmo, PH Towers etc going up which dilutes the market even more, making the property depriciate before it was even built. Alas, you stop construction. Yes, they will not survive the weathering process.

 

Yeah, pretty much up to 2006, even early 2007, the economy was booming and Las Vegas was making lots of money.

At peak times of the year there were times when most of the hotels were at or near capacity... so it made sense to buy more land, at almost any cost, and start building a hotel.

Then there was the economic downturn... times got tough... land prices dropped about 80-85% of what they were at their peak... people still came to Las Vegas and while overall visitor numbers went down only a little bit, the amount of money people brought dropped a lot.

But a big part of the problem was: the companies building these new resorts didn't have the money for it. They had enough money to get the projects started and then it was supposed to be financed by selling condo units that would be located in the resort.

But since its a recession nobody is buying condo units, especially not at the super inflated prices they were going for...

So the companies run out of money... can't afford to finish construction... and now you have a few eye sores.

 

That blue bldg. is the Fountainlbleu, it has been bought and scavenged by billionaire investor Carl Ichan. The furnishing were all sold off and used to remodel the Plaza downtown. I read were he's waiting for the land value to go back up before he unloads it. Another problem with that property is a lawsuit by condo owners next door complaing about their million $ views being spoiled.
As to the exposed work at other sites like Echolon, I was told by engineer friends that with the Vegas climate, you have about 4-5 years before you lose integrity. That time is about up for that project.

 

Ah, my poor Stardust. Not to hijack completely, but it is a little interesting to wonder what the Stardust and the north strip would be like had Sam Boyd not got all jiggy about $5B resorts. When the economy collapsed and as a mid-tier property, would he have been positioned well enough to survive (like Circus Circus)? Or would the City Center, etc. hit the Stardust hard and cause it to stagger (like the Riviera)?

If the Stardust had survived, what about Westward Ho? Would that have gone down, too? Sahara? Its almost like when Boyd decided to close the Stardust that he personally affected the entire north end. I'd like to have that kind of power to wield.

 

What i wonder is how do they start working on them again. How do they know where they left off? surely there wont be one guy who remembers all the details or will there be?

 

Why?

Greed!

Boyd had a cash cow with the Stardust, but wanted more of the El-Lay 20-bopper party crowd, you know, those who love things like 6:5 blackjack and absentee celebrity chef restaurants and the oh-so-trendy velvet rope clubs where guys with more testosterone than brains pay gazillions for bottle service in the hope of getting their ashes hauled!

My guess is that if they kept the Stardust open, the whole North Strip would have done much better the past few years.

Oh well ...

 

Tab A into slot B

 

Ahhh, so that's what has ruined the south strip view from any downtown and The STRAT hotel...big unsightly, unfinished eyesores....