Mohegans interested in failed Vegas casino

“I can say that there are a number of opportunities that we are looking at, and that’s one of them.” CHIEF EXECUTIVE BOBBY SOPER, MOHEGAN TRIBAL GAMING AUTHORITY, OF THE INCOMPLETE FONTAINEBLEAU

Mohegan Sun could be a player in a bid for a Las Vegas casino property that fell into bankruptcy while under construction in 2009.

Bobby Soper, the Mohegan Tribal Gaming Authority’s chief executive officer, confirmed Friday that the authority has an “interest” in the former Fontainebleau, a 68-story structure described as the second-tallest building in Las Vegas, where it towers over the north end of the city’s famed Strip.

“I can say that there are a number of opportunities that we are looking at, and that’s one of them,” Soper said of the Fontainebleau.

About 70 percent complete, the Fontainebleau was to include nearly 3,900 hotel rooms, a convention center, retail space and other amenities.

New York financier Carl Icahn bought the property out of bankruptcy in 2010, paying around $150 million. It was listed for sale in November with an asking price of $650 million. The buyer would have to spend another $1.5 billion to $2 billion to complete construction, according to reports.

“Obviously, we would have to have partners to be involved in something of that magnitude,” Soper said.

In a news release, an executive vice president with CBRE Las Vegas, the firm handling the sale, described the Fountainebleau as “one of the most exciting development opportunities in Las Vegas in many years.”

“The structure has been well-maintained and is ready for immediate development to bring to fruition the vision of its next owner,” John Knott said.

“This is an unparalleled asset with significant potential on one of the most landmark streets in the world,” Knott said. “Opportunities like this are few and far between.”

Knott referred a reporter’s inquiry to an Icahn Enterprises executive who did not respond to a phone message.

Gaming in Las Vegas, hit hard by the Great Recession, is said to be in comeback mode.

“In a lot of places, the casino industry has positively rebounded. Not exactly to 2008 levels, but it’s come back,” Soper said. “Las Vegas is among those that have rebounded.”

The Mohegan Tribe-owned authority, which owns Mohegan Sun in Uncasville and Mohegan Sun Pocono in Wilkes-Barre, Pa., has an expanding portfolio.

It manages and has an equity stake in Resorts Casino Hotel in Atlantic City, and development and management contracts with the Cowlitz Indian Tribe, which is building a $500 million casino in La Center, Wash.

In April, the authority announced that it had signed a contract to manage the Tunica-Biloxi Tribe of Louisiana’s Paragon Casino Resort in Marksville, La.

Earlier this year, the authority won a license to develop a resort at Incheon International Airport near Seoul, South Korea. The project’s $1.6 billion first phase is scheduled to open in 2020.

“We’re plugging away at putting a development team in place.” Soper said. “So far, so good.”