Tropicana plans to dismantle it in 2024, when the MLB A's team moves to Las Vegas
Demolition of the Tropicana Hotel and Casino in Las Vegas could take place as early as late 2024. Assume the Oakland Athletics (A's) move on to Sin City.
That timeline coincides with the expiration of the team's lease at its current stadium in Oakland. Earlier this week, Ross Edwards, senior vice president of operations for Mortenson McCarthy, spoke with the Las Vegas Stadium Authority. He said Construction on a new Major League Baseball (MLB) stadium in Las Vegas needs to begin no later than April 2025 in order to have the site ready before the start of the 2028 season. The Athletics hired Mortenson McCarthy to lead development of the new stadium.
In May, Tropicana operator Bally's and the A's announced a binding agreement that paves the way for construction of a new MLB stadium on the site of the once iconic casino resort. Soon after, it was revealed that Tropicana had an estimated lifespan of 18 to 24 months.
The MLB team previously entered into a binding agreement with Red Rock Resorts for approximately 40 acres located at the intersection of I-15 and Tropicana. It is believed the deal fell through because the public financing needed to build a stadium at the site was $500 million, compared with $395 million needed to build the same project at the Tropicana site.
Tropicana’s Destiny Driven by A. Bally
Gaming and Leisure Properties Inc.'s (NASDAQ: GLPI) COO Brandon Moore noted during yesterday's third-quarter earnings call: "The current process for Tropicana is primarily driven by a And Bally pushed it.”
However, GLPI owns the property and expresses its views on the issue in a manner relevant to all parties involved. The real estate investment trust (REIT) has committed $175 million in financing for a stadium project there, but recently noted that amount could increase.
I think we have disclosed that we have committed a minimum investment to support the demolition and cleanup of the site and build some shared infrastructure to determine if we decide to invest more money on this project. " Moore said on the conference call.
He added that GLPI may at some point decide to increase investment in the stadium project, but added: "It's too early for us to make a commitment."
The stadium's development costs are estimated at $400 million, most of which will be borne by the A's. However, the team is raising funds for the remaining $1.1 billion needed to implement the project.
Tropicana may be revived in the future
GLPI has previously said it would work with Bally's to potentially revive the Tropicana in an updated form on the course once it is completed. The venue's demolition is not a surprise and could have happened even if the A's hadn't moved to Las Vegas, as Bally's has committed to a major renovation of the venue.
Still, Tropicana is dying in its current form, which means a piece of Las Vegas history is dying as well. In the bygone era of Sin City lore, Tropical Gardens is inextricably linked to organized crime. In the late 1950s, then-owner Ben Jaffe came under scrutiny when promissory notes from Luciano family owner Frank Costello were discovered.
In the late 1970s, Tropicana became the target of a money-making operation by the Civella crime family in Kansas City. The criminal gang was part of the plot of the hit 1995 film Casino, directed by Martin Scorsese and starring Robert De Niro, Joe Pesci and Sharon Stone.
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Source: www.casino.org