Tuesday, March 30, 2004
Copyright © Las Vegas Review-Journal

At their peak: New resorts vie in height

Construction continues on Wynn Las Vegas. However, a new resort may top the Wynn project in height. Photo by Gary Thompson.

Looks like billionaire Sheldon Adelson could overshadow rival Steve Wynn in building the tallest new casino in town.

Adelson intends to build a 53-story megaresort that will top the Wynn Las Vegas hotel-casino by 105 feet, according to an architectural draft of the project submitted to county planners.

The proposed megaresort would be next to The Venetian on the Strip. Adelson is chairman of the board of Las Vegas Sands, the parent company of The Venetian.

The much-talked-about project, commonly referred to as "Phase II" of The Venetian expansion, will be named The Palazzo, documents filed with the Clark County Planning Division in January show.

Ron Reese, The Venetian's director of corporate communications, declined to comment Monday until the company submitted final design plans.

The Palazzo is expected to cost more than a $1 billion. No completion date has been set.

The $2.4 billion Wynn Las Vegas hotel now under construction will be 50 stories and rise 613 feet above Las Vegas Boulevard. It's scheduled to open in April 2005. Wynn did not return a phone message left at his office Monday.

The Palazzo originally was to be 460 feet or 42 stories, but plans were changed.

The Palazzo's latest design calls for 3,020 hotel rooms, 100,000 square feet of casino space and 400,000 square feet of meeting and ballroom space, according to planning documents. An additional 225,000 square feet will house retail businesses.

The project, on the corner of Sands Avenue and Las Vegas Boulevard directly across from Wynn Las Vegas, will have 4,000 underground parking spaces and a 1,500-seat theater.

County officials said the planning commission was scheduled to vote April 8 on The Palazzo, but the hearing was delayed.

"The Venetian people are still working on their revised parking plan," said Gregory Borgel, a planning consultant on the project.

The Palazzo, Borgel said, will have hotel rooms at the highest levels of any in Las Vegas, including the 43-story Mandalay Bay.

The Stratosphere is the tallest structure in Las Vegas and west of the Mississippi River at more than 1,100 feet -- but doesn't house hotel rooms above 24 stories.

Deutsche Bank gambling analyst Marc Falcone said the rivalry between Adelson and Wynn is good for Las Vegas.

"Clearly the competitive nature of those two developers results in a constant evolution of better product for Las Vegas," Falcone said. "Those guys are going to piggyback off of each other's success."

County staff recommended the commission approve the plan in a draft letter.

"This project will bring another upscale and attractive venue for hotel visitors and motorists," the recommendation said.

The corners on which Wynn and Adelson are building could become the must-see spot in town.

MGM Mirage already has renovated Treasure Island, gutting its family friendly image and replacing a G-rated pirate show with a racy spectacle. The Fashion Show mall also has completed its well-hyped and expensive expansion.