In June 2005, we reported that a new luxury-accommodation brand name was being introduced to Las Vegas and the world. At the time, Fontainebleau Resorts had just been formed, with former Mandalay Resort Group president Glenn Schaeffer at the helm. The $1.5 billion 4,000-room Fontainebleau Las Vegas was announced to be built on a 25-acre parcel owned by Turnberry Associates, where the El Rancho once stood. The lot fronts Turnberry Place, the major high-rise-condo development on the north Strip. Construction was supposed to begin by the end of 2005, with the grand opening planned for 2008.
So much for the plans. As often happens in Las Vegas, especially these days, projects are announced with great fanfare, then disappear.
On the other hand, Fontainebleau has pretty strong credentials: available land, a well-known brand, an experienced developer, and a veteran Las Vegas casino executive at the helm. So we weren’t surprised to hear that Turnberry recently submitted plans to the Clark County Planning Commission, calling for 2,929 hotel rooms, 959 condo-hotel units, and the usual dining, entertainment, retail, and convention space. The main building would be 725 feet tall, which would place it among the tallest in the valley.
Obviously, the chances of such a large property being completed by the original 2008 target date are slim, though no updated schedule has been announced. But Turnberry Associates has plenty on its plate. The company continues to build towers at Turnberry Place, at the Residences at MGM Grand (and another 1,700 units were just announced for that property); it's also a partner in the 177-acre Town Square south of Mandalay Bay and it's renovating the original Fontainebleau in your neck of the woods, Miami Beach.
Also, it’s a tight market for developing Las Vegas these days. There’s so much construction going on and so many plans in the pipeline that it’s tough to find a general contractor capable of handling such a large project that’s not booked up for years. Also, the cost of labor, materials, and equipment keeps going up. And with so many new properties coming on the scene, competition is intense. So Fontainebleau could take awhile.
The Planning Commission is scheduled to vote on the plans on Sept. 5; we’ll update this at that time.
