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Best of Benjamin Spillman

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Benjamin Spillman
 

Downtown Project buys Gold Spike, casino to close on Sunday

12 April 2013

LAS VEGAS -- The Siegel Group Nevada Inc. Thursday announced the sale of the Gold Spike Hotel & Casino for an undisclosed amount to an entity of Tony Hsieh’s Downtown Project, a privately funded venture working to revive downtown Las Vegas.

The Downtown Project already owned the note on the property, suggesting a transfer was in the works. The Siegel Group’s announcement confirmed it.

According to the Siegel Group, the Gold Spike, which first opened in 1976, will close at 3 p.m. on Sunday. The Downtown Project expects to announce redevelopment plans for the property later this year.

“We weren’t in the position that we needed to sell the building,” Siegel Group President and CEO Stephen Siegel said Thursday. “We sell things from time to time, if it makes sense.”

Siegel said his company would find as many jobs for employees as it can at its other Las Vegas properties. The rest will be given the opportunity next week to interview with Downtown Project representatives.

The casino management contract with Fifth Street Gaming, which runs the Gold Spike’s gaming operations, will end Sunday, Siegel said. He declined to discuss any financial settlement with Fifth Street Gaming.

“We are in the hotel and real estate business,” Siegel said. “We are looking to upgrade into larger casinos. We want to be on the Strip, and we’ll have to get rid of smaller properties to make that happen.”

Siegel said the deal was a positive development for downtown Las Vegas.

The Downtown Project hasn’t yet stated what it plans to do with the property, which is near the future headquarters of Zappos, the online shoe and apparel retailer set to occupy the former city hall building at Stewart Avenue and Las Vegas Boulevard.