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Wednesday, January 03, 2001
Copyright © Las Vegas Review-Journal

THE STRIP: Developers plan new megaresort

Project may include 40-story tower

A Las Vegas company has announced plans to build a south Strip megaresort that may include a 40-story tower on 77 acres, across from Mandalay Bay.

Land developers Howard Bulloch and David Gaffin are key players in New World LLC, which has scheduled a news conference for Thursday morning to release details of the project.

"It's going to be a real boost for Las Vegas and the Strip," Bulloch said. "It's been in the works for three or four years."

He declined to reveal the cost of the project or any other details.

The proposal raised some concern last summer with McCarran International Airport officials because a proposed 425-foot hotel tower could interfere with the arrival and departure of flights.

The Federal Aviation Administration approved the proposed tower's height and later rejected an appeal of the decision by McCarran officials, who argued that there traditionally has been a 300-foot height limit in that area.

"As long as the FAA is OK with it, then so are we," McCarran spokeswoman Hilarie Grey said.

An FAA representative failed to return a Tuesday phone call seeking comment.

The hotel-casino is expected to include a convention center and fine arts facility, according to a news release issued by the developers.

When reached on his cellular phone Tuesday morning for more details, Bulloch hung up.

Bulloch accumulated 46 acres of the 77-acre parcel through a $34 million loan from Del Mar Mortgage.

After paying off the loan last August, he filed a lawsuit against Del Mar, now known as Vestin Mortgage, for alleged fraud. He sought $10 million in damages, claiming Del Mar employed questionable loan practices.

Vestin Mortgage Chief Executive Officer Michael Shustek said Bulloch's lawsuit against his company was dismissed in District Court within the last 10 weeks.

Shustek declined to comment further about the lawsuit because he said he hadn't read the complaint.

No details were available Tuesday on how the remaining 33 acres were acquired.

Last summer, Bulloch was in talks with billionaire Richard Branson, the chairman of Virgin Atlantic Airlines to possibly co-develop the resort across from Mandalay Bay, Grey and Shustek said.

Tuesday phone messages to Branson's Virgin Management Group were not returned.

Bulloch met with Branson last summer at the Four Seasons Hotel at Mandalay Bay when the airline chairman was in town to launch Virgin Atlantic's London-to-Las Vegas service. Bulloch later went to London to discuss the possibility of a joint venture with Branson for a hotel-casino on the property.