Las Vegas officials approve Tropicana implosion
Clark County is home to one of Bally's Corp. Permits have been filed to demolish the historic Tropical Gardens Hotel in Las Vegas. The Rhode Island-based company has until Oct. 20 to drop the Trop.
The permit was approved on April 20, nine days after it was submitted, but activation still requires a $48,000 application fee, the Las Vegas Review-Journal reported.
The implosion would cost Bally $15 million, according to documents.
Bally Chairman Soo Kim told The R-J on Wednesday that the large event is expected to take place in September or October, depending on when GGG Demolition receives the appropriate permits. (The Orange, Calif.-based, woman-owned company’s acronym stands for “Going, Going, Gone.”)
Tropicana closed on April 2, just before his 67th birthday. Ohio-based International Content Liquidations (ICL) is currently selling any portion of the casino resort that can be separated prior to implosion — either piece by piece or as a fully furnished hotel suite.
Curveball
Bally's has repeatedly expressed interest in building a new $1.5 billion baseball stadium for the Oakland Athletics on nine acres of the 35-acre site. Mortenson-McCarthy, the construction firm hired by the Athletics, told the Las Vegas Stadium Authority last year that construction on the ballpark would begin in April 2025 and be completed in time for the start of the 2028 season.
However, Moody's recently downgraded Bally's credit rating further to junk status, casting doubt on its future plans.
In addition to building a baseball stadium, the plans include building an adjacent casino hotel on the Tropicana grounds. Bally's also reportedly missed out on $800 million to fund a casino-hotel in downtown Chicago.
High leverage and junk credit ratings pose problems for companies seeking financing. Because when these companies issue corporate bonds, they must compensate creditors for the perceived risk with high interest rates.
Gaming and Leisure Properties Inc. owns the 35-acre Tropicana property. In 2021, Bally's signed a 50-year lease with GLPI for the site.
The biggest fear for many Las Vegas observers is that the Strip will lose another symbol of its history, only to be left vacant for another decade or more.
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Source: www.casino.org
