The ongoing Dream Las Vegas construction has been halted due to delayed funding. Bill Shopoff, the resort's developer's funds ran out. He has pending liabilities of contractors and cash flow promises for the $550 million casino resort.
Is the Construction's Halt Related to Safety?
Shopoff, CEO, and President of Shopoff Realty Investments stated in a press conference that the construction has not halted due to safety reasons. Instead, he owes contractors about $30 million and they will continue working once he finalizes the project's financing terms.
The developer revealed that the property's owners broke ground last year and have been paying construction costs in cash. Still, they are striving to get $400 million for the casino resort.
Shopoff added that his company is holding discussions with the lender hoping to complete the transaction soon. He said that the Dream Las Vegas project will cost $550 million to $575 million.
More Details About the Casino Project
The property's owners launched the project in July 2022 on Las Vegas Boulevard, south of Russell Road. It will have 531 guest rooms, nightlife spaces, an event and meeting space, restaurants, and a pool deck that will launch next year.
Contour and Shopoff Realty Investments are the property's developers. They disclosed that the resort will provide a small boutique-style experience that will help clients distinguish it from other huge hotel casinos nearby.
The funding stoppage increased the developers' receivables towards McCarthy Building Companies, the Dream Las Vegas' lead contractor. But, Shopoff promised to settle his group's contractual liabilities promptly. He added that specific issues have affected the project since it kicked off like the Federal Reserve's action which increased borrowing costs, banking industry developments, and the property owners taking long to seal the deal last year.
The Enthusiastic Contractor
Ross Edwards, McCarthy's Senior Vice President stated last July in the project's groundbreaking ceremony that they would hire about 1,200 construction experts. He added that the construction industry is enthusiastic and willing to take part in the development of another Las Vegas landmark.
The work environment has to be empowering, inclusive, welcoming, and safe. Edwards signed McCarthy's recorded lien notice on March 10, 2023, showing that the contractor received $43.3 million in payments and was expecting to get an extra $40.2 million by then.
Obstacles That the Project Faces
Dream Las Vegas encountered several challenges before the stalled funding. They included design changes made due to security concerns since it is near the Las Vegas airport.
Its developers found that a new neighboring facility constructed in spring of 2021 encroached on Dream Las Vegas by eight feet. But a court later settled the encroachment issue.
Hyatt Hotels Corporation recently purchased the Dream Hotel Group for $300 million. It announced that it would pay a $125 million base price and $175 million in six years. Yet, Shopoff stated that Hyatt's deal won't change the resort's programming or name.