Commission OKs takeover of Aliante, sale of Fitzgeralds

The Nevada Gaming Commission on Thursday approved the takeover of Aliante Station by a number of its lenders, allowing the 3-year-old luxury resort to emerge from bankruptcy.

The five-member commission also approved the sale of Fitzgeralds in downtown Las Vegas to owners of the nearby Golden Gate. Terms of the sale from the estate of Donald Hamilton Barden to brothers Derek and Geregory Stevens were not disclosed.

Both decisions had been expected.

Nine banks and three equity firms now will own Aliante Station. Station Casinos LLC, which built the property in 2008, lost its ownership stake in a pre-packaged bankruptcy plan in May, but will continue to manage the property.

Dan Reaser, an attorney with Lionel, Sawyer & Collins in Las Vegas, told the commission the banks and the equity firms had converted their loans into an ownership stake of the hotel-casino.

The new owners will invest $45 million to keep the resort operating. Aliante Station employs about 880 people, he said.

At the time of Aliante Station’s bankruptcy, its lenders were owed more than $378 million.

Reaser said the private equity companies, Apollo Management, TPG Capital and Standard General, will own more than 60 percent of the new company, known as ALST Casino HoldCo LLC. The banks, including City National Bank and Bank of America, will own less than a third of the new company.

Apollo and TPG already hold an ownership stake in Caesars Entertainment Corp. TPG, along with Leonard Green & Partners, also owns a majority of the Palms.

Reaser told the commission that while Stations would manage the property, its owners have hired an “asset manager that will meet weekly with the management committee.”

The four members of the committee are Soohyung Kim, James Coulter, Eugene Irvin Davis and Ellis Landau.

“The asset manager will be the eyes and ears of the owners on the property,” Reaser said.

Chairman Peter Bernhard said his only concern “is the potential deadlock issue of the board” with only four members. He requested the company prepare occasional reports for the commission to “see if it’s working.”

Commissioner Dr. Tony Alamo said Aliante’s restructuring was a positive development, despite its “very hard location.”

The hotel-casino has 202 rooms, 2,000 slot machines, 36 table games, bingo, poker, a race and sports book, six restaurants, and a 650-seat showroom. The property in North Las Vegas opened in November 2008 just as the recession began to devastate the local economy and a year after Station Casinos completed a buyout that took the gaming company private.

The resort’s lenders purchased the property at a fraction of the original cost of $662 million. A deal, Bernhard said, that Apollo and others saw as “a good opportunity to buy debt at a reduced amount.”

Commissioners Randolph Townsend and John Moran Jr. joined with Bernhard and Alamo to approve the deal. Commissioner Joseph Brown recused himself because his law firm, Jones Vargas, has done business with Station Casinos.

Fitzgeralds, meanwhile, was purchased for an undisclosed price by brothers Derek and Gregory Stevens, who also own two-thirds of the Golden Gate. Derek Stevens will own 78 percent, while Gregory Stevens owning the remainder, according to commission documents.

Derek Stevens will manage Desert Rock Enterprises II, the company that owns Fitzgeralds.

Barden was 67 when he died of lung cancer on May 19. In 2010, Black Enterprise magazine ranked Barden Cos. as the 10th highest-grossing black-owned company, with $405 million in revenue.

In 2001, Barden became the first black owner of a Las Vegas casino with his purchase of Fitzgeralds.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.

Business Videos
Impact of parking fees on visiting the Las Vegas Strip
There are no data showing a relationship between Strip resort and parking fees and the number of out-of-state visitors to Las Vegas. But there are data showing a relationship between Strip parking fees and the number of local visitors to the the Strip. ‘’As a local, I find myself picking hotels I visit for dinner or entertainment, based on whether they charge for parking or not,”’ said David Perisset, the owner of Exotics Racing. ‘’It is not a matter of money, more of principle.’’ A 2018 survey by the Las Vegas Global Economic Alliance found 36.9 percent of Clark County residents reported avoiding parking at Strip casinos that charge for parking. 29.1 percent reported avoiding using any services from a Strip casino that charges for parking.
MGM's sports betting deals
MGM Resorts International signed a sports betting sponsorship agreement with the NBA in July It was the first professional sports league to have official ties with a legal sports betting house. The deal came just two months after the U.S. Supreme Court overturned a law prohibiting sports betting in most states. In October, MGM became the first gaming company to sign a sports betting partnership with the NHL. In November, MGM became the first gaming company to sign a sports betting partnership with the MLB. Financial terms of Tuesday’s deal and earlier partnerships have not been announced.
Faraday puts Las Vegas land on the market
Nearly two years after Faraday Future bailed on its North Las Vegas auto factory, the company has put its land up for sale. (Michael Quine/Las Vegas Review-Journal)
El Cortez owner Kenny Epstein on running the iconic property
Kenny Epstein, owner of the El Cortez Hotel in downtown Las Vegas, talks about Jackie Gaughan mentorship and answers rumors about bodies in the basement at the mob-era casino. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
LVCVA recommends construction of underground people mover
The Las Vegas Convention and Visitors Authority announced the recommendation for an underground people mover for the convention center. The system would have the potential to expand and connect Downtown and the resort corridor all the way to McCarran. (Michael Quine/ Las Vegas Review-Journal)
LVCVA/Boring Company Press Conference
The Las Vegas Convention and Visitors Authority announced a collaboration with Elon Musk's The Boring Company to develop and operate an autonomous people mover system for the Las Vegas Convention Center District.
International Pizza Expo includes green and gluten free
The International Pizza Expo at Las Vegas Convention Center included companies focused on vegan and gluten free, and plant-based pizza boxes. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
International Pizza Expo kicks off in Las Vegas
The first day of the International Pizza Expo at Las Vegas Convention Center is everything Pizza. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
T-Mobile program aids guests with sensory needs
A program at T-Mobile Arena is designed to provide a more sensory friendly experience for guests.
Photo Booth Expo
Danielle May talks about how Simple Booth transformed her Volkswagen bus into a business.
Nevada Gaming Commission's highest fines
The highest fines assessed by the Nevada Gaming Commission, according to commission Chairman Tony Alamo: 1) Wynn Resorts Ltd., $20 million, 2019 2) CG Technology (then known as Cantor G&W Holdings), $5.5 million, 2014 3) The Mirage, $5 million ($3 million fine, $2 million compensatory payment), 2003 4) Stardust, $3 million, 1985 5) Santa Fe Station, $2.2 million ($1.5 million fine, $700,000 compensatory payment), 2005 6) Las Vegas Sands, $2 million, 2016 7) CG Technology, $1.75 million, 2018 8) CG Technology, $1.5 million (also $25,000 in escrow for underpaid patrons), 2016 9) Caesars Entertainment, $1.5 million, 2015 10) Imperial Palace, $1.5 million, 1989 11) Peppermill Casinos, $1 million, 2014
Tiny Pipe Home vs Shipping Crate
A Tiny pipe home was displayed at the International Builders Show this week in Las Vegas.
Auto repair shortage affects Las Vegas
The auto repair industry is facing a national shortage of workers.
Franchising industry booming
Experts say Las Vegas is a hotbed for the franchise industry.
Africa Love owner talks about his store in Las Vegas
Mara Diakhate, owner of Africa Love, gift and decor store, talks about his store in Las Vegas. (Bizuayehu Tesfaye/ Las Vegas Review-Journal) @bizutesfaye
Developer gets approval to build homes at Bonnie Springs
The Clark County Planning Commission has approved a plan to build 20 homes on the site of Bonnie Springs Ranch. (Michael Quine/Las Vegas Review-Journal)
Dig This opens new location In Las Vegas
Remember when you were a kid and played with construction toys in the sand box? Dig This Las Vegas has the same idea, except instead of toy bulldozers, you get to play with the real thing. (Mat Luschek/Review-Journal)
Town Square developer Jim Stuart building again in Las Vegas
Las Vegas’ real estate bubble took developers on a wild ride, something Jim Stuart knows all too well. (Las Vegas Review-Journal)
Salon opens at Veterans Village
T.H.E. Salon, owned by Nicole Christie, celebrated their opening at the Veterans Village with a ribbon cutting ceremony.
Southwest Airlines considering Las Vegas-Hawaii flights
Southwest Airlines CEO Gary Kelly says the airline is "very focused" on Hawaii. Hawaiians have a strong presence in Las Vegas.The city’s unofficial status is “Hawaii’s ninth island.” In 2018, at least 2,958 people from Hawaii moved to Nevada. Of those, 88.7 percent moved into Clark County, according to driver license surrender data. According to the Las Vegas Convention and Visitors Authority, 310,249 people came to Las Vegas from Hawaii in 2018.
Fewer Nevadans are celebrating Valentine's Day
Fewer Nevadans are celebrating Valentine's Day. About 1.2 million Nevadans are expected to celebrate this year, a 5 percent drop from 2018. A growing number of people consider Valentine’s Day over-commercialized. Others weren’t interested in the holiday or had nobody to celebrate with. But spending is expected to rise. Those who do celebrate are buying for more people. The average American is expected to spend about $162 this year for Valentine’s Day, a 57 percent jump from a decade prior. Katherine Cullen, director of industry and consumer insights at NRF
Foreclosures of mansions in Las Vegas
Las Vegas was ground zero for America's foreclosure crisis after the housing bubble burst. (Eli Segall/Las Vegas Review-Journal)
Rick Helfenbein talks about the impact of tariffs on the clothing industry
MAGIC fashion convention showcases men's clothing trends
The MAGIC fashion convention has come to Las Vegas at the Mandalay Bay Convention Center to showcase some of the hottest clothing trends for men. (Nathan Asselin/Las Vegas Review-Journal)
Allegiant Air flight attendants learn how to handle a water landing
Field instructor Ashleigh Markel talks about training prospective flight attendants for Allegiant Air getting live training with a raft for a water landing at the Heritage Park Aquatic Complex in Henderson on Monday. (John Hornberg/Las Vegas Review-Journal)
Smith & Wollensky CEO Michael Feighery speaks
Smith & Wollensky CEO Michael Feighery speaks about the new Smith & Wollensky restaurant coming to the Grand Canal Shoppes at The Venetian in Las Vegas.
Smith & Wollensky CEO Michael Feighery speaks
Smith & Wollensky CEO Michael Feighery speaks about the new Smith & Wollensky restaurant coming to the Grand Canal Shoppes at The Venetian in Las Vegas.
Smith & Wollensky CEO Michael Feighery talks about Las Vegas return
Michael Feighery, CEO of Smith & Wollensky Restaurant Group, discusses the restaurant's upcoming return to the Las Vegas Strip.
Apartments to Come to Hughes Center
Developer Eric Cohen discusses his current building project at the Hughes Center office park in Las Vegas, Thursday, Jan. 31, 2019. Caroline Brehman/Las Vegas Review-Journal
Stratosphere to rebrand to The STRAT
The Stratosphere, a 1,150-foot-tall property in Las Vegas will be renamed The STRAT Hotel, Casino and Skypod.
TOP NEWS
Home Front Page Footer Listing