Wednesday, June 25, 2003
Copyright © Las Vegas Review-Journal

Rollin' on the river

Riverside project to move ahead in Laughlin

The master plan for Riverside Developments' Emerald River development in Laughlin calls for a 150-slip marina, 620 attached residential units, a 90-unit time share tower, a 300-room hotel tower and 50,000-square-foot casino and 90,000 square feet of retail space. COURTESY RIVERSIDE DEVELOPMENTS Click image for enlargement Graphic by Mike Johnson.

Las Vegas real estate developer Nick Azouz has decided to proceed with his Emerald River development on 275 acres in Laughlin without the adjacent 110 acres he tried to acquire from the Colorado River Commission.

The master plan, which is zoned H-1, or hotel-casino, calls for a 150-slip marina, 620 attached residential units, a 90-unit time share tower, a 300-room hotel tower and 50,000-square-foot casino and 90,000 square feet of retail space.

Azouz, president of Riverside Developments, said he's going to start with 50 homes valued at $7.5 million on waterfront property at the north end of his development.

"I've got too much money sitting there not doing anything," Azouz said recently. "I want to continue to do something and take advantage of the market. Interest rates are low and it's a good time to build."

The original Emerald River project, with two miles of frontage along the Colorado River, was halted in 1990 by developer Orion's bankruptcy proceedings, leaving an 18-hole championship golf course with no clubhouse and a partially completed hotel-casino.

Azouz, who owns 30 acres in northwest Las Vegas and a shopping center near Rainbow Boulevard and Hacienda Avenue, acquired a major portion of the foreclosed property from PaineWebber in early 2001.

He approached the Colorado River Commission later that year about buying the remaining 110 acres, which were never acquired by the original developer, and submitted a formal development proposal in June 2002.

The commission rejected his offer of $3.8 million. Independent appraisers hired by the commission placed the value of the land at $4.4 million to $4.7 million in March, roughly $40,000 an acre.

The commission debated whether the land was undervalued, then voted not to do anything with it.

"I was disappointed they (the developers) didn't get it," said Don Laughlin, who built the Riverside in 1966 and is the Colorado River town's namesake.

"That was unfortunate for Laughlin. The more productive he could make the property, the better it could be for the community. What's good for him is good for the community."

Proceeds from the sale of the CRC property would go to the Laughlin capital improvement fund. The Emerald River project had the support of the Laughlin Town Board and Chamber of Commerce.

Laughlin, largely a drive-in market from California and Arizona, has been severely affected by Indian gaming. Visitor volume and gross gaming revenue have dropped 5.6 percent and 1.5 percent, respectively, through April, the latest month reported by the Las Vegas Convention and Visitors Authority.

Jim Shaw, who represented Riverside Development as senior manager for Deloitte & Touche and now works full time for Azouz at Emerald River Realty, said they're still interested in acquiring the CRC land.

"We may not be able to justify the marina and full resort tower complex with the reduced 275-acre plan, but we will include them if it's economically viable," he said.

Since the commission's decision not to sell the land, Azouz has been working with land planners and golf course designers to make Emerald River a viable resort destination.

The golf course has been reconfigured to allow for additional waterfront residential development. A new clubhouse with dining facilities will be built overlooking the 18th green.

"I hope it's going to work out," Azouz said. "You never know. I'm sitting on a river and a golf course. It's very unique. People want to live by a river and a golf course."

Shaw said discussions are continuing with several hotel-casino operators, declining to identify them.

"A hotel-casino is a necessary part of any destination resort, but we're not looking at doing a large hotel property," he said.