The Dream Las Vegas hotel-casino project, envisioned as a boutique-style resort near the southern edge of the Las Vegas Strip, has become a cautionary tale of stalled development, missed deadlines, and financial setbacks.
Project Timeline and Background:
- The developers, Bill Shopoff (Shopoff Realty Investments) and David Daneshforooz (Contour), purchased the site for $21 million in February 2020, just before the COVID-19 pandemic hit.
- Clark County approved plans for a 20-story, 527-room hotel-casino in fall 2021, with a ceremonial groundbreaking in summer 2022.
- Construction halted less than a year later, with the developers owing tens of millions of dollars to contractors and subcontractors.
Financial and Legal Challenges:
- Developers repeatedly assured Clark County they were close to securing new financing and would restart construction, but the site remained dormant.
- The lead contractor, McCarthy Building Companies, filed a lien for over $40 million, joined by other subcontractors. Eventually, McCarthy sued for unpaid work, and a settlement resulted in the property’s ownership transferring to the contractor in August 2024.
- Shopoff cited volatile lending markets, higher borrowing costs, and bank failures as reasons for the financial delays.
Requests for Extensions:
- The developers have requested multiple extensions from Clark County to keep their approvals alive:
- In late 2023, they sought a one-year extension, promising imminent financing and a January 2024 construction restart. Only nine months were granted.
- In August 2024, they requested a third extension, claiming they were in “final underwriting” with lenders and negotiating with equity providers, projecting construction could restart in the fourth quarter.
- County staff recommended denial of the latest extension, classifying the project as abandoned under their agreement.
Commissioner’s Stance:
- Commissioner Jim Gibson expressed exasperation at continued delays, warning that further extensions were unlikely and emphasizing the importance of paying contractors and delivering on promises.
Complicating Factors:
- The pandemic severely disrupted Las Vegas’ economy just after the project launched.
- Security concerns from the TSA and airlines, due to proximity to the airport, led to design changes and delays.
- A surveying error resulted in the adjacent Pinball Hall of Fame encroaching on Dream’s property, prompting litigation and a subsequent settlement.
Current Status:
- As of August 2024, McCarthy Building Companies owns the site following a legal settlement.
- The project is effectively classified as abandoned by Clark County staff, and unless commissioners grant another extension—against staff recommendation—the current plans may expire, requiring a new application for any future development.
- The area remains a patchwork of megaresorts, smaller motels, retail, empty lots, and unfinished projects, with Dream Las Vegas now a prominent example of the difficulties in getting new developments off the ground on the Strip’s south end.