Fontainebleau’s original developer sets out to finish what he started

After a lukewarm instauration from Gov. Steve Sisolak, developer Jeffrey Soffer walked connected signifier astatine a media lawsuit this week for Las Vegas’ long-stalled bluish tower: the Fontainebleau.

Soffer, the project’s archetypal developer, reacquired the spot early this year, much than a decennary aft it went bankrupt and started collecting particulate and changing hands. This week, helium unveiled a program to yet decorativeness what helium started.

“It’s benignant of a brainsick story, but I’m back,” helium told the audience Tuesday.

Soffer, proprietor of Florida-based Fontainebleau Development, aims to unfastened the 67-story Fontainebleau Las Vegas successful the 4th fourth of 2023. The hotel-casino is 75 percent complete, and operation has already resumed, according to a quality release, which did not accidental however overmuch it would outgo to decorativeness the 3,700-plus-room project.

This marks the latest penciled opening day — nether the latest acceptable of owners — for a northbound Strip high-rise that remains an unfinished reminder of Las Vegas’ mid-2000s existent property craze, its devastating clang and, much recently, the coronavirus pandemic’s terrible economical fallout.

Soffer, who reacquired the Fontainebleau successful concern with the existent property helping of Kansas conglomerate Koch Industries, told Review-Journal newsman Colton Lochhead connected Tuesday that it’s a “wonderful building” and that the woody “felt right.”

“It was the close timing and … everything came unneurotic with the partners … We conscionable bought it,” Soffer said, adding, “It was a large deal.”

According to spot records, the caller owners acquired indebtedness connected the task Feb. 11 and, the aforesaid day, gained ownership of the spot done a process that lets radical avoid foreclosure.

Soffer indicated that the Fontainebleau, aft sitting unfinished “for each these years,” was “exactly the mode that I near it.” He besides said helium didn’t see buying an existing edifice successful Las Vegas.

“I built this property, what’s present today,” helium said.

Plans for the Fontainebleau were unveiled successful 2005, and the project, led by Soffer and erstwhile Las Vegas casino enforcement Glenn Schaeffer, broke crushed successful 2007.

But the roaring existent property marketplace soon crashed, the system spiraled downward, and the Fontainebleau’s developers sued respective banks successful outpouring 2009, alleging the “unscrupulous” lenders backed retired of their committedness to concern operation of the multibillion-dollar resort.

Without the further funds, the task “cannot beryllium finished and volition ne'er open,” the developers warned.

Ultimately, the Fontainebleau went bankrupt successful mid-2009, and billionaire Carl Icahn acquired it successful 2010 for astir $150 million.

As the system improved, Icahn sold the spot successful 2017 for $600 cardinal to developer Steve Witkoff and existent property steadfast New Valley, a subsidiary of cigaret shaper the Vector Group.

In aboriginal 2018, Witkoff and Marriott International unveiled the resort’s caller name, Drew Las Vegas; the plans for 2 Marriott brands there; and an expected opening successful precocious 2020.

Witkoff, who aboriginal pushed the opening to 2022, said aboriginal past twelvemonth that helium was adjacent to obtaining a astir $2 cardinal operation indebtedness for the project. But successful March 2020, arsenic Las Vegas rapidly unopen down implicit fears of the coronavirus outbreak, helium suspended construction.

Contractors aboriginal filed tens of millions of dollars’ worthy of liens alleging unpaid bills for their enactment astatine the Drew. Several ex-employees besides sued Witkoff, alleging they were laid disconnected from the task amid the pandemic and weren’t paid what their contracts called for.

As precocious arsenic July, Marriott’s website said the edifice would unfastened successful October 2023. But past month, the edifice elephantine confirmed that it “reached an amicable settlement” with the existent spot owners that resulted successful Marriott “exiting the project.”

Soffer’s steadfast says it volition run the Fontainebleau.

Will the Strip’s large bluish operation yet open? After 15-plus-years of waiting, what’s different mates years to find out?

Contact Eli Segall astatine esegall@reviewjournal.com oregon 702-383-0342. Follow @eli_segall connected Twitter.