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"Cher" is a four-letter word ...
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Palazzo dealt self-inflicted wound

Posted At : March 31, 2008 09:51 AM | Posted By : D McKee
Related Categories: Sheldon Adelson,The Strip,Election

Palazzo's oh-so-soft opening is coming back to haunt it. According to GlobeSt.com, Las Vegas Sands was expecting a $500 million downpayment on its Palazzo retail mall last January -- but got only $290.8 million, as of a few weeks back. (Yes, a $209.2 million shortfall.) Previously, LVS had said it was anticipating $500 million upfront and an eventual total of $750 million. The sale of the mall to General Growth Properties, however, is pegged to actual retail performance.

Or, as GlobeSt puts it: "The purchase price will be equal to the property's net operating income in month 30 of operation divided by a capitalization rate ... An industry source familiar with the transaction tells GlobeSt.com that the decreased initial payment is due to the fact fewer stores than expected were up and running at the time of the initial close, so their rents were not taken into consideration."

Consequently, General Growth will have to make twice as many installment payments to LVS as originally. It already owns the nearby Grand Canal Shoppes, at The Venetian, purchased four years ago for $776 million. 

McCain's Vegas Quickie: I guess he just loves us for our money. In and out in an hour, long enough to embrace newfound enthusiast Sheldon Adelson and make a tacky joke about our reeling local economy. We're told John McCain made "an inspirational speech about his position on the economy," which we'll have to take on faith because neither the Great Unwashed nor their representatives in the Fourth Estate were allowed to hear any of it (and because nothing McCain has said about the economy lately has evinced either inspiration or a coherent position beyond guvmint doing "as little as possible").

According to Jon Ralston, McCain took two -- count 'em, two -- questions before skedaddling out a side door. Not that McCain's anti-collegiate sports betting, pro-Yucca Mountain and do-nothing economic stances would probably play well here. Still, none of the foregoing -- not even McCain's snub of local media yokels (compared to his chummy relationship with Beltway regulars) prevents a local publisher from falling in a maidenly swoon at McCain's feet (oh, and saying Republicans have "moved far beyond ... when it comes to honestly discussing matters of race"; yes, if by "moved far beyond" you mean "completely freaking ignored," then he's got it about right.)

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Comments
Jeff in OKC's Gravatar The worst part for Las Vegans is that Sherm Fredrick's pro McCain editorial is positively mild compared to Brian Greenspun's pandering for Hillary. The most pathetic was Sunday's "Where I Stand" editorial, which looked like a grown-ups version of the "Leave Britney Alone!" rant on YouTube.
# Posted By Jeff in OKC | 4/1/08 6:16 PM
David McKee's Gravatar I'll take your word for it. Greenspun is so bloody boring I don't even read him. At least he's constant. Seems like just yesterday that Sherm had a man-crush on Bill Richardson.
# Posted By David McKee | 4/1/08 6:22 PM