The Fontainebleau in Las Vegas has been serving as a rather unpleasant reminder of the recession that hit the United States back in 2009. Thankfully, the current owner of the building has had plans to put a wrap around the bottom three floors, approved.
The owner, Carl Icahn, submitted an application for permission to cover up the unfinished construction project and this permit was finally approved. The only stipulation is that work on the building needs to begin within the next three months.
Fontainebleau sits Empty
The Fontainebleau building is the second tallest building located in Las Vegas. It is constructed on the same land that used to be home to the El Rancho Hotel, which was demolished back in the year 2000, after shutting down in 1992.
The Fontainebleau Resort was a huge undertaking by its developer, who spent two years and $2 billion on the project. This was until 2009 when the company went bankrupt, and the building has remained unfinished since then. It is estimated that around 70% of the project was complete, with another $1 billion worth of construction to go before completion.
The wrapping of the bottom floors will be the first major construction at the location in nearly ten years and is expected to cost around $500 000.
Icahn waiting for Fontainebleau gamble to pay off
Icahn bought the project back in 2010 for around $150 million. He has had no desire to be in the casino business, nor did he plan on completing it. Soon after Icahn took ownership, he put it up for sale, with an asking price of $650 million. It is estimated that any buyer would need to invest another $1.5 billion to complete the 3900-room resort. It was reported that the Mohegan Tribal Gaming Authority made an offer in 2016. However, this was rejected by Icahn.