CLOSING ANOTHER DOWNTOWN PROPERTY WOULD HURT THE AREA

Implications: The closing of the Lady Luck Hotel and Casino did not seem like a big deal at the time as the owners talked about refurbishing and up dating the hotel. The truth of the matter was that they had some financial problems and were unable to start the clean up process. The thought of closing Binions would be a real dilemma or the down town area. Things there are not up to par anyway and Mayor Oscar Goodman is doing all in his power to capture to old glory of the area.

Analysis: Downtown has been in a decline for several years - some of the properties have not see fit to keep up and thus failed to keep their customers. There are some exceptions, Fitzgeralds and the Golden Nugget have maintained their standards. The market downtown is like no other in the Las Vegas area. It is extremely specialized even more so than the regular local market created by Stations and Coast Casinos. There have been some poor decisions on just how to keep downtown from being a waste land - The Mayor has kept very vigilant on his views and has tried his best to have this area in a clean up, fix up and paint up mode. It sometimes goes on deaf ears. The shame of it all is that with a little help from the property owners it can be revived. It take dollars to make dollars - the problem is most can't afford to chip in their share.

The best of all answers for both Binions and the Lady Luck is to sell out to investment groups that can afford to not only purchase, but also bring the properties back into today's market picture. There are groups out there looking for deals - it's a matter of connecting them. 

The very real concern is that if the downtown area loses any additional properties, it will look to investment groups as a poor gamble. It won't be an easy task to make these properties workable again. It will take a solid investment, great management and a keen eye to properly market the area. It can be done and has the potential of being a viable business district again. The city is ready to help - it's up to all concerned not to lose hope for this terrific street to maintain it's integrity............