Judge turns down sale of Moulin Rouge

The Moulin Rouge is ripe yet again for another go at development.

Clark County District Judge Elizabeth Gonzalez on Tuesday denied the sale of the property to Moulin Rouge Holdings LLC, citing infighting within the company as well as a better offer for the property from another buyer.

Boris London, managing member of Moulin Rouge Holdings LLC, said he is relieved by the judge’s ruling and no longer will have anything do with Moulin Rouge Holdings LLC or the site.

“I’m done,” he said, adding that he is afraid to say anything more until he gets his $500,000 deposit back.

London put the money in escrow with Fidelity National Title Group to be used for the purchase, with an agreement that he could get it back if the sale was denied or if he canceled the deal before May 13.

“After doing some due diligence, my client requested a cancellation (May 9),” said Las Vegas attorney William Devine, representing London.

But Scott Johnson, a member of Moulin Rouge Holdings LLC who insists he is in charge of the company — despite signing a document April 27 acknowledging he is a member and not the manager — signed a document purporting to accept the project, which could have made London’s $500,000 nonrefundable if the sale had been approved by the court.

 

“We opposed that the sale was being forced on my client after we had already issued a cancellation,” Devine said, adding that the $500,000 in escrow now will, or “better be,” returned to London.

“You win some or you lose some,” Johnson said, adding that he is working to “make sure he (London) gets his funding back.” He also said he is working to stay involved with the development project.

“We’re not giving up,” Johnson said. “It’s not over until it’s over. Have you ever seen a ruling that always stood? Sometimes they don’t. Sometimes there are different things, there may be other people involved and you just never know. We keep a plan B, that’s all I’m going to say.”

Johnson’s attorneys did not return a request for comment.

The receiver of the Moulin Rouge property, Kevin Hanchett, received a $9.5 million offer for the property Monday from Georgia-based AMA Realty LLC. He said he will file a motion to have the sale to AMA Realty approved “as soon as possible.”

There are more than 300 investors waiting for a sale of the Moulin Rouge property to close. After a deal successfully closes investors will finally be repaid from a $19 million loan that their borrower defaulted on.

The original Moulin Rouge, the first racially integrated hotel-casino in Las Vegas, opened in downtown Las Vegas in 1955 at an estimated cost of $3.5 million.

Katherine Duncan, president of the Ward 5 Chamber of Commerce, said she is “excited” with the outcome of the court’s decision and that it will allow the chamber an opportunity to work with a developer that “shares our vision.”

Duncan and the chamber have been working to find a developer who could put money down and who would be open to developing the property with the chamber’s input.

“We’re hoping to create a full scale afro-themed resort that will attract the international community serving as an economic engine for the entire Westside community,” Duncan said, adding that the area could be dubbed “soul city.”

State Assemblyman Harvey Munford, D-Las Vegas, is chairman of the chamber’s board of directors. Las Vegas is lacking an area that honors African-American history and culture, he said.

 

“I always felt that this (the Moulin Rouge) could be a dedication or tribute to even Michael Jackson; he has family that lives here,” he said. “Can you imagine what an attraction that would be when you came to Vegas?”

“In order to have the Moulin Rouge be successful, we believe our community needs to partner with a private developer who has the expertise and the track record,” she said.

Contact Nicole Raz at nraz@reviewjournal.com or 702-380-4512. Find @JournalistNikki on Twitter.

ad-high_impact_4
Business
Bellagio, MGM Resorts International’s luxury hotel turns 20
The more than 3,000-room Bellagio hotel is situated on the site of the former Dunes Hotel. The Dunes was imploded in 1993, and construction of the Bellagio started in 1996. It cost $1.6 billion to build, making it the most expensive hotel in the world at the time. The Bellagio was former Wynn Resorts Ltd. Chairman and CEO Steve Wynn’s second major casino on the Strip after The Mirage. MGM Resorts International acquired the property from Steve Wynn in 2000. (Tara Mack/Las Vegas Review-Journal)
Facial recognition software at G2E – Todd Prince
Shing Tao, CEO of Las Vegas-based Remark Holdings, talks about his facial recognition product. (Todd Prince/Las Vegas Review-Journal)
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant
Former NBA player, Shaquille O'Neal, speaks about his new Las Vegas chicken restaurant. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Bobby Baldwin to leave MGM
MGM Resorts International executive and professional poker player Bobby Baldwin is set to leave MGM.
Caesars has new armed emergency response teams
Caesars Entertainment Corp. has created armed emergency response teams. They are composed of former military and law enforcement officials. "These teams provide valuable additional security capabilities,” Caesars spokeswoman Jennifer Forkish said. Caesars is hiring Security Saturation Team supervisors, managers and officers, according to LinkedIn. The company did not say how many people it plans to hire for the units. (Las Vegas Review-Journal)
Las Vegas, airlines prepare for CES
CES in January is expected to attract more than 180,000 attendees. (Las Vegas Review-Journal)
AGS partners with Vegas Golden Knights
AGS is the nation’s second-largest manufacturer of Class II slot machines used primarily in tribal jurisdictions. It announced a marketing partnership with the Vegas Golden Knights NHL team. (Las Vegas Review-Journal)
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like