Published Tuesday, May 12, 2009 | 5:08 p.m.
Updated Tuesday, May 12, 2009 | 6:14 p.m.
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Sun Archives
- Fontainebleau glazing contractor no stranger to overcoming adversity (5-6-2009)
- Fontainebleau workers laid off amid funding concerns (4-30-2009)
- Union: Banks putting jobs in jeopardy over Fontainebleau (4-29-2009)
- Sued by Fontainebleau, banks could cite ‘act of God’ as defense for refusing funds (4-29-2009)
- In Fontainebleau's PR battle, banks have yet to talk (4-27-2009)
- Berkley wants talks with Obama administration on Fontainebleau (4-27-2009)
- Fontainebleau files $3 billion suit over funding (4-23-2009)
Sun Coverage
Beyond the Sun
Fontainebleau Las Vegas
In an amended lawsuit filed Tuesday, developers of the Fontainebleau Las Vegas resort allege that Deutsche Bank – among a group of lenders that had agreed to finance the property's construction – conspired to hurt Fontainebleau to minimize competition with the Cosmopolitan, an under-construction resort the bank acquired out of foreclosure last year.
The future of the Fontainebleau Las Vegas, which is more than halfway complete, remains in jeopardy after lenders last month pulled $770 million in financing needed to finish the property. Fontainebleau developers have filed suit, alleging the banks unlawfully reneged on their financing obligations.
The amended complaint states that Deutsche Bank also sought to persuade other banks to pull funding for Fontainebleau Las Vegas and has worked to discourage other banks from working out their differences with the project's developers.
"This claim is an attempt by the Fontainebleau's developers to distract from the fact that they have breached their loan covenants," Deutsche Bank spokesman John Gallagher said. " We will defend ourselves vigorously against this meritless allegation."
The Cosmopolitan, with nearly 3,000 rooms, is under construction at the corner of Harmon Avenue and Las Vegas Boulevard for an expected opening next year. Fontainebleau was scheduled to open in October with more than 3,800 rooms between the Riviera and Sahara casinos. Both multibillion-dollar resorts plan to offer condominium-hotel units that owners purchase and rent to visitors.
In a letter sent to Fontainebleau Las Vegas, Bank of America – the lead bank arranging the $770 million loan – said developers defaulted on a loan agreement but did not elaborate. Fontainebleau denies any default on their part.
Work has slowed dramatically on the Fontainebleau and many construction workers have been laid off.
Deutsche Bank also provided funding for CityCenter, an $8.6 billion resort complex owned by MGM Mirage and Dubai World that will in open in stages this year.
Bank of America, Royal Bank of Scotland and Sumitomo Mitsui bank, which also loaned money for CityCenter, are Fontainebleau lenders named in the suit but are not the subject of conflict of interest allegations.
Deutsche Bank acquired the Cosmopolitan for about $1 billion after the developer defaulted on a construction loan. The developer had put less than $50 million into the project as equity.
The Cosmopolitan of Las Vegas dares to be different. From the hotel’s red reservations desks to fine art found throughout the resort, The Cosmopolitan’s signature style is helping to pave its own path on the Las Vegas Strip.
Upon entering the resort, you’re greeted by pillars of video boards playing video art by Digital Kitchen and David Rockwell Studio exclusively produced for The Cosmopolitan. Just beyond that, you’ll find all your favorite casino games on the resort’s 100,000-square-foot casino floor.
The Cosmopolitan’s rooms standout as the resort’s most unique feature. About 2,220 of The Cosmopolitan’s 2,995 rooms have 6-foot deep terraces that span the length of the room, a first at a modern Strip hotel. Other in-room amenities include soaking tubs, kitchenettes and quirky accessories like artsy coffee table books.
The dining experience at The Cosmopolitan isn’t something you’ll find at other Strip resorts, either. All of The Cosmopolitan’s 13 restaurateurs are new to the Las Vegas market. You’ll find American steakhouse fare in a modern setting at STK, top-notch sushi at Blue Ribbon Sushi Bar & Grill and the freshest fish flown in from the Mediterranean daily at Estiatorio Milos.
Whether the sun is up or down, Marquee Nightclub & Dayclub is the place to find the party at The Cosmopolitan. The venue is a dayclub/nightclub, complete with a pool and cabanas outside and three different rooms with three different vibes inside.
If nightclubs aren’t your thing, you can grab a drink at one of The Cosmopolitan’s five other bars, like The Chandelier, which is encased in 2 million dripping crystals.
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