Thanks to 'Redneck' for sending this info in. The 1,888 foot 'Las Vegas Tower' project, proposed for construction on the former 'Wet N' Wild' site near the Sahara may be dead. The developer, Christopher Milam, missed a $40 million payment to the landowner, Archon Corp., this past weekend.
For a developer working on a $4.8 billion project to miss a $40 million payment isn't a good sign for the project. For the property owner not to boot them and find someone else isn't a good sign for the demand for that land (at least at the prices they want). The $40 million payment has had it's due date extended to May 31, 2007 - this is the third time the date has been moved and each time LVTI pays about $250,000 for the option so they actually are putting some cash in but things still look shaky at best.
Anyone have any more info on this? I know the debate has raged on the particulars of the building but that's moot if no cash is devoted to continue development.
The section from the 8-K filed with the SEC appears after the jump...
SEC Filing Excerpt:
"Item 1.01 Entry into a Material Definitive Agreement.
On March 27, 2007, Sahara Las Vegas Corp., a Nevada corporation and subsidiary of Archon Corporation (the “Company”), and LVTI LLC, a Delaware limited liability company (“LVTI”), entered into a third amendment (the “Third Amendment”) to the Option Agreement dated June 24, 2006 (the “Agreement”) between the Company and LVTI, as amended on September 16, 2006 (the “First Amendment”), and as further amended on December 15, 2006 (the “Second Amendment”). The Company previously disclosed the terms of the Agreement in a Current Report on Form 8-K dated June 29, 2006, the terms of the First Amendment in a Current Report on Form 8-K dated September 19, 2006 and the terms of the Second Amendment in a Current Report on Form 8-K dated December 20, 2006.
Pursuant to the Third Amendment, LVTI may elect to pay to the Company a payment of $250,000.00 on April 2, 2007 and another payment of $250,000.00 on May 1, 2007 in order to extend the date on which the second deposit of $40,000,000.00 (the “Second Deposit”) is due from March 31, 2007 to May 31, 2007 (the “Third Extension Payments”). In exchange for the extension of the Second Deposit due date, the purchase price will be increased to $475,000,000.00 if LVTI does not pay the Second Deposit to the Company on or before March 31, 2007. If LVTI pays the Second Deposit by April 30, 2007, then it does not have to make the $250,000.00 payment on May 1, 2007. The Third Extension Payments, if paid, are non-refundable and will not be applied against the purchase price under the Agreement.
Further, on March 30, 2007, the Company and LVTI entered into a fourth amendment (the “Fourth Amendment”) to the Agreement between the Company and LVTI, as amended in the First Amendment, the Second Amendment and the Third Amendment. Pursuant to the Fourth Amendment, should LVTI elect to pay the Second Deposit on April 3, 2007, then LVTI does not have to pay to the Company a payment of $250,000.00 on May 1, 2007 and the purchase price will not be increased to $475,000,000.00, but will remain at $450,000,000.00.
Copies of the Third Amendment and the Fourth Amendment are filed as exhibits to this Report."