Las Vegas Sun

April 30, 2024

Aladdin owner receives wish

It was as easy as saying, "Open, sesame."

The County Commission played genie in the lamp Wednesday to Aladdin owner Jack Sommer, granting his wish to transform the aging Strip hotel-casino into a gleaming $600 million mega-resort.

"Jack has done a great job," Commissioner Jay Bingham said in making the motion to grant the use permit and variances requested by Sommer to start the two-year renovation project.

Sommers also received a variance allowing one hotel tower to encroach 48 feet into McCarran International Airport air space, and another tower to go 198 feet into air space.

The unanimous project endorsement came after spending six months with county staff on the project's design, said Mel Lacquement, executive vice president for planning for the Aladdin.

But an attorney for the owners of property surrounding the Aladdin played David to Sommer's Goliath, throwing stones at plans to expand Harmon Avenue to accommodate the hotel's growth.

Part of the plan calls for widening Harmon into a six-lane thoroughfare to accommodate traffic generated by the expanded hotel-casino.

That drew objections from Reynolds Enterprises, which owns three acres at the northeast corner of Harmon and Las Vegas Boulevard. Reynolds would have to give up 30 feet of right of way along Harmon under the proposed street expansion.

Reynolds attorney Ed Lubbers said the owners won't give up that real estate without a fight.

"Nobody asked how their traffic plans would impact our property," Lubbers said, asking for more time to study the traffic plans and talk with Aladdin officials.

"We have no desire to stop the Aladdin," Lubbers said. "It's a large project that's going to benefit us, but we need to know how it will affect us."

Lubbers suggested that since the road widening is being driven by the Aladdin's expansion, the Aladdin should trade the same amount of land for Reynolds' Harmon frontage.

"That's a novel approach," Commissioner Paul Christensen said. "I haven't heard that one before."

Lubbers said it would save the county from going through a condemnation proceeding to get the land, and save taxpayers millions of dollars.

Lacquement said the Aladdin has no control over the county's desire to widen Harmon, but would talk with Reynolds and county officials "in determining how the issue should be resolved."

The renovations on the 36-acre site will take about two years to complete.

The renovations will be consistent with the existing hotel-casino, incorporating the original tower and performing arts center in its design, Lacquament said.

"We want to keep the 1,001 Nights theme and expand it," Lacquement told the board. "It's the same Aladdin, just bigger and better and expanded on."

The expansion will create four new towers, adding nearly 2,000 new rooms to the existing 1,100-room tower.

The renovation's centerpiece will be a 400-foot high rectangular resort tower, and a smaller tower identical to the existing tower for 2,600 rooms. Plans also include a 256-room time share condominium in the northeast part of the property, and a 300-room hotel-casino on the property's southwest corner.

Plans also call for renovating the performing arts center and building a wrap-around shopping mall.

Aladdin officials confirmed that San Francisco 49ers owner Eddie DeBartolo, rumored to be interested in a piece of the Aladdin action, is in negotiations to co-manage the shopping center.

"DeBartolo is one of several operators who approached Jack with some respect to managing the property," Lacquement said.

Aladdin officials would not discuss what DeBartolo might be seeking beyond the co-management issue, and said that "any further discussions for involvement are not on the table."

Lacquement said an Arthur Anderson analysis projected the expansion would bring Clark County $26 million in tax revenue annually, out of a total estimated revenue of $66 million.

The project also will generate up to $600 million in construction dollars, employing 1,000 workers a month for the duration, generating $160 million in wages.

The analysis also projected $479 million in tourist revenue, based on Las Vegas Convention and Visitors Authority criteria, Lacquement said.

Lacquement said the original hotel will continue operations during the 24-30 months of construction.

The Aladdin's financial outlook has never looked better, Lacquement said.

Sommers bought the Aladdin in 1994 from Bell Atlantic-Tricon Leasing, which had acquired the hotel in 1991 after the bankruptcy of former owner Ginji Yasuda, a Japanese businessman.

Along with the Aladdin expansion, Sommers is building the Mountain Spa resort complex in northwest Las Vegas.

Sommers Properties has developed more than 100 million square feet of commercial and residential property, including the Sovereign high-rise, the Bankers Trust Building and North Shore Towers, all in New York.

Sommers financed the Aladdin purchase by selling the Bankers Trust Building.

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