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March 19, 2024

Tourism authority OKs $182.5 million purchase of Riviera

LVCVA Convention Center

The Las Vegas Convention and Visitor Authority plans to use the site of the Riviera as part of a $2.3 billion Las Vegas Global Business District project, which includes a 1.8 million-square-foot expansion of exhibit and meeting space, shown here.

Updated Friday, Feb. 20, 2015 | 4:50 p.m.

Riviera Hotel 2015

The Las Vegas tourism authority is moving forward with plans to purchase the Riviera so it can be demolished to make room for more convention space on Tuesday, February, 17. 2015. Launch slideshow »
Click to enlarge photo

This rendering, provided by the Las Vegas the Las Vegas Convention and Visitors Authority, shows where additional convention center space could be built once the Riviera is knocked down.

Las Vegas tourism officials today agreed to pay $182.5 million to buy the Riviera, paving the way for the closure and demolition of the nearly 60-year-old resort.

At a special meeting, the Las Vegas Convention and Visitors Authority’s board of directors approved the purchase and authorized spending up to $8.5 million more on related expenses. The vote was unanimous, although one board member, North Las Vegas Mayor John Lee, was not present.

The Riviera, which opened in April 1955 and is one of the oldest casinos on the Strip, will be demolished to make room for more convention space. It will close on May 4, according to a statement from Paragon Gaming, the company that manages the Riviera.

Paragon, not the authority, is in charge of closing the property. The authority is responsible for demolishing it.

Las Vegas Mayor Carolyn Goodman, a member of the board, was particularly concerned about the roughly 1,000 jobs that will disappear when the Riviera shuts down. Goodman said she was fully behind expanding the convention center, but she had “real concerns” about losing that many jobs for people who she said are just starting to bounce back from the recession.

But the property’s current operator, Paragon Gaming, intends to help employees find new work. Paragon said in a statement after the vote that it plans to hold two town hall meetings with workers. Paragon also said that, in anticipation of the sale’s approval, it set up a website for employees that includes job training tips and a consolidated listing of the valley’s hospitality job openings.

“With all of the resources we’ve made available, and maintaining direct lines of communication with the associates, we expect positive results for those looking to re-enter the work place,” said Paragon CEO Scott Menke in the statement. “We have heard from several gaming properties about their interest in hiring some of our folks and we will assist with their transition.”

Once the Riviera is demolished, the authority plans to replace it with thousands of square feet of new exhibit and meeting space as part of its $2.3 billion Las Vegas Global Business District project. The project is expected to bring 6,000 construction jobs as well as up to 6,000 permanent jobs to the valley, according to the authority.

Beyond jobs, the authority anticipates that the entire business district project will generate $3.6 billion in economic activity on the construction portion alone; once finished, it could produce an incremental economic impact of nearly $700 million and $221 million in wages and salaries, the authority said.

“This is really the Tesla project for Las Vegas,” said Rossi Ralenkotter, the authority’s president and CEO, at the beginning of the board meeting.

The Riviera wasn’t the only option authority staff explored for the expansion. Ralenkotter said the authority considered acquiring the LVH, located just north of the convention center, before it became the Westgate Las Vegas. The Riviera site, however, gives the convention center an attractive address on Las Vegas Boulevard, Ralenkotter said.

A record 41.1 million visitors came to Las Vegas last year, and tourism officials hope the convention center expansion can help them push that number up to 45 million.

Conventions would be key to bringing in lots of new tourists, and there’s evidence that the market can handle more. Christopher Kersting, CEO of the Specialty Equipment Market Association, told the board that his trade show could use that extra convention space to accommodate its growth.

The whole business district project should take five to eight years to finish once construction starts.

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