Developers of stalled Vegas casino project get more time to build, again

Clark County commissioners gave the developers of a stalled casino project another lifeline.

The commission on Wednesday approved a third time extension for the partially built Dream Las Vegas resort near the south edge of the Strip. Construction crews stopped building the project more than two years ago with the developers owing tens of millions of dollars, and the site is now owned by the lead contractor, following a legal settlement over unpaid bills.

County staff had recommended denying the extension request, writing in a report that the project, under the terms of an agreement with the county, is classified as abandoned.

Representatives for Dream developer Shopoff Realty Investments and the project’s general contractor, McCarthy Building Companies, attended Wednesday’s meeting to jointly request the extension.

All told, the vote keeps approvals for Dream alive by granting more time to resume construction on the hotel-casino project near the iconic “Welcome to Fabulous Las Vegas” sign.

Otherwise, the plans will expire, unless extended again.

Shopoff Realty founder Bill Shopoff, who attended the meeting, declined to comment after the vote.

Property is ‘too valuable’

Last fall, when the developers were seeking their second extension, Commissioner Jim Gibson said the situation “can’t go on forever,” that officials want projects they “believe are really happening,” and the likelihood of more extensions down the road was “remote.”

On Wednesday, Gibson said that he still would prefer to see appropriate development, including resorts, along this stretch of Las Vegas Boulevard, rather than just the private planes parked nearby on airport property.

He also said that the Dream site is “too valuable” and was always envisioned for development.

“We can get a project there; I hope we get one,” said Gibson, whose district includes the property.

The developers had sought a one-year extension of their approvals to resume construction, records show. Gibson made a motion Wednesday for a two-year extension.

The project has been in the works for more than five years.

Shopoff and David Daneshforooz, founder of real estate firm Contour, teamed up to acquire the site for $21 million. They closed the purchase and announced plans for Dream, in February 2020 — the month before the coronavirus pandemic turned life upside down and shut off much of the economy overnight.

Clark County commissioners approved plans for a 20-story, 527-room hotel-casino in fall 2021, and the developers held a ceremonial groundbreaking in summer 2022.

Dream, on Las Vegas Boulevard just south of Russell Road, was designed to offer a smaller, boutique-style experience in a corridor dominated by massive resorts with thousands of rooms apiece and lengthy lists of amenities.

Construction got underway but eventually came to a halt.

‘It’s been hard’

McCarthy filed a lien in March 2023 claiming more than $40 million was owed for work on the site. Several subcontractors, including electrical, steel and drilling companies, filed liens as well, the Las Vegas Review-Journal previously reported.

Shopoff told the newspaper in March 2023 that he owed approximately $25 million to $30 million for work on the resort, that construction had “fully stopped,” and that the work would restart once financing terms were finalized.

Months later, McCarthy sued Dream’s ownership group in Clark County District Court in summer 2023, seeking a judgment for the principal sum it was owed.

The construction firm alleged in a court filing that the developers “continued to promise new loans and funding” with hopes of restarting the project, “to no avail.”

Following a settlement in the case, Shopoff transferred ownership of the project site to McCarthy this past August, records show.

At the time, Shopoff said the project kept getting delayed amid volatile financing markets. He also said his group intended to buy the property back from McCarthy and build the resort.

“But I will tell you, it’s been hard,” he said.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342.