Judge allows Fountainbleau Las Vegas out of land lease
A bankrutpcy court judge this week agreed to let Fontainebleau Las Vegas get out of lease for 26 acres of land that was being used as a construction staging area for the Strip project.
The former Wet N’ Wild site was costing the developer $350,000 a month and was being used to store materials and equipment to be delivered to the project. It was also a parking lot for subcontractors and their employees.
The lease agreement, signed in April 2007, was set to expire next month.
The court also granted Fontainebleau’s request to terminate two construction trailer leases costing the developer as much a $578 each per month.
The Wet N‘ Wild site, owned by the Archon Corp., was where Texas-based developer Christopher Milam wanted to build a 1,064-foot hotel tower before the economic downturn tightened credit markets.
Bankruptcy Judge A. Jay Cristol is scheduled to hear arguments today in Miami on appointing an examiner to negotiate and supervise a sale of the project.
Construction on the mixed-use project is 70 percent complete, and it has been estimated at least another $1.5 billion would be needed to complete construction.
Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.
