Trump Tower Plans on Hold

LAS VEGAS --The oft-delayed redevelopment of the New Frontier is getting closer to reality, but plans to build Trump Tower Las Vegas on the site are now on hold, property owner Phil Ruffin said Monday.

Four "major operators, companies you would know," are now in talks with Ruffin about a joint-venture megaresort, he said.

But Trump Tower Las Vegas, the upscale condominium project Ruffin and New York real estate magnate Donald Trump planned for the southeast corner of the New Frontier site, may not be built.

He declined to say why the Trump Tower Las Vegas component is no longer a sure thing.

"Everything is up in the air," Ruffin said, noting that he wants to see what joint-venture proposals emerge for the New Frontier site before deciding on a likely condominium component.

Ruffin sounded eager to get his redevelopment plans going.

"We're getting close," Ruffin said. "We've asked them to submit proposals for a joint-venture by Dec. 15."

Ruffin declined to identify the interested operators he says want to build a megaresort on the New Frontier site.

Deutsche Banc Securities casino equity analyst Marc Falcone said almost every major hotel company and at least one major gaming operator would be interested in a New Frontier joint venture.

"That's one site that's going to be redeveloped by the end of the decade," Falcone said. "It's across from Wynn Las Vegas, next to Fashion Show, across from a likely Phase II resort at The Venetian and potentially next to Stardust redevelopment. It's a prime site."

Falcone said Harrah's Entertainment stands out as a possible joint-venture partner. The other big Las Vegas operators already have choice sites available for development, while Harrah's would like to improve its presence on the Strip, he said.

One Wall Street analyst who spoke on condition of anonymity said he thinks there's enough developable land on the Strip to make Ruffin's sales pitch for a joint-venture partner tough.

"I'm not holding my breath for Ruffin to land a deal," the analyst said. "This property has been troubled and he's a little on the desperate side."

Ruffin bought the New Frontier for about $170 million with plans to redevelop the property reeling from the effect of the six-year Culinary 226 strike against its former owners.

Three years ago, interest rates were too high for Ruffin to borrow the money he needed to build a San Francisco-themed resort, and the terrorist attacks of 2001 and last year's economic doldrums made raising money impossible.

Ruffin in August reduced the estimated cost of Trump Tower. What were plans for a $350 million, 60-story condominium that would have been taller than all Las Vegas buildings save the Stratosphere dropped to $272 million and 43 stories.

The condominium would have targeted high-end buyers, with its 300 units averaging about $1.5 million each.

Ruffin said Monday he expects a condominium component to remain part of the New Frontier's ultimate redevelopment.