What have you heard about the Fontainebleau?

[Alan Mendelson]

I was in town on Tuesday to shoot a new report for our TV show (details coming) and I got to talk to some "insiders" about the Fontainebleau. Right now, they told me, there is no clear indication of what will happen. Carl Icahn, the developer, is hoping that he can hang on to the property long enough that he can sell it to someone who will finish it. He has no intention to finish it, I was told, which is why he already unloaded the furnishings to other hotels and liquidators.

At the same time, pressure is mounting to either finish the shell because it is an eyesore and other property owners are complaining to city and county officials. There is a move to either get the property finished or "implode it" as one insider told me.

And it really is an eyesore. I can't believe that city and county officials have allowed it to stay as it is for so long.

Have you heard anything?

[Alan Mendelson]

And I heard something new.... We've heard about how The Plaza in downtown has renovated its hotel with furnishings, fixtures, tiles, marble, wallpaper, carpet, lighting and more from Carl Icahn's abandoned project. Well, I heard that The Plaza could not buy everything because some other buyers who are furniture and building fixtures liquidators started to bid high for the spoils of the resort. As a result, some of the furniture and fixtures are headed to hotels and condos all over the country including Florida. So, you might someday visit another hotel or condo somewhere in the country that will look a lot like that room or lobby at The Plaza. And you will be right -- because that hotel or condo might have more stuff from the Fontainebleau.

Look at our video report on the new makeover of The Plaza including an interview with Plaza CEO and President Tony Santo by clicking here: http://alanbestbuys.com/id73.html

[BobOrme]

Alan,

Icahn wasn't the developer. He bought the already foreclosed on property for a fraction of what had been spent to build what is there now, for around $150 million if I remember right. The reason he was able to buy it so cheap is because it would/will cost around $1 billion to complete the project.

The F'nblue shell looks better than the abandoned Echelon project a little south and across the street. The F'nblue also didn't require the destruction of a couple of Las Vegas landmarks - the Westward Ho and the Stardust - to start construction like the Echelon did.

I predict Icahn will finish the place. It won't happen until the economy is on a serious upturn, and it won't be called the F'nblue.

[Alan Mendelson]

My sources also tell me that Echelon is under the gun to do something -- finish or implode. So far, the owners/developers have been able to buy time because even the government agencies want the projects to be finished. But with each passing day of no activity there are concerns about public safety, eyesore and blight that will damage the neighboring properties. I wonder if Icahn will see the economy turn fast enough before the pressure is on to take the place down, and the same with Boyd. Thanks for joining BobOrme.

[Alan Mendelson]

Looks like the first of the abandoned projects to implode will be the Harmon and not Echelon or Fontainebleu. But I would not be surprised to see them go quickly. After all if Harmon can go what's sparing Echelon of Fontainebleu? Echelon and Fontainebleu also present threats to the local image, economy and safety.