Speculators sniff around Gold Spike

The Gold Spike is the epitome of a grind joint, but the $15 million asking price hasn't kept potential buyers away from the downtown casino.

Peter Feinstein, managing partner of the Sapphire Gentleman's Club, is among the curious.

He's intrigued by the location near developing condominiums and the Gold Spike's manageable size.

Feinstein, however, isn't convinced a downtown business renaissance is under way. Downtown casino win is still in decline and the Neonopolis mall sits largely vacant just across the street from the Spike.

"I know there is potential down there," Feinstein said. "I don't know how long it will be before that potential arrives."

MGM Mirage Chairman Terry Lanni is familiar with Elad Group, the New York-based real estate group paying $1.2 billion for the New Frontier site.

Lanni believes the company has a development track record that suggests it will replace the aging casino with a resort that exceeds the current value of the Strip acreage.

"They are getting something like $6,300 a square foot for condominiums at the Plaza," Lanni said of the landmark New York City property that Elad bought for $675 million and is renovating.

"We're selling our residential units at CityCenter for about $2,800 a square foot. I'm a little envious."

MGM Mirage executives would not take questions about a potential deal to sell Bellagio and CityCenter to majority stockholder Kirk Kerkorian during last week's annual shareholder meeting.

However, several questioners provided colorful commentary.

One person thought the MGM Mirage should ban foie gras from all its restaurants because of the treatment of the geese that provide the gourmet delicacy.

Another shareholder complained about excessive splashing in the Excalibur's swimming pool.

One woman thought the company should give all shareholders free MGM Grand T-shirts and encouraged everyone to attend the weekend performances of Liza Minnelli at Luxor.

Station Casinos is expected to pursue its Durango Station project after completing the $600 million Aliante Station in North Las Vegas in 2008.

The project near Rhodes Ranch has gained Clark County approvals, including permission on May 16 to begin early grading on the 71-acre site.

Durango Station is expected to have 400 hotel rooms and a 120,000-square-foot casino.

Station Casinos also owns 337.9 acres at 10 potential sites in the Las Vegas Valley and 100 acres in Reno.

The Inside Gaming column is compiled by Review-Journal gaming and tourism writers Howard Stutz, Benjamin Spillman and Arnold M. Knightly. Send your tips about the gaming and tourism industry to insidegaming@reviewjournal.com.