Plans for new Strip casino at Fashion Show Mall remain unclear
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Howard Hughes Corp.’s reputation in Las Vegas for developing master-planned community Summerlin bolsters its chances of getting a casino developed on the Strip, a UNLV history professor said.
“They have a successful business track record,” Michael Green, a history professor at UNLV, said in an interview. “The oddity is that they have no real experience with casinos, so they’re going to have to figure that out.”
Howard Hughes Holdings, the parent company of real estate development company Howard Hughes Corp., announced last week plans for a spinoff division, Seaport Entertainment, that will take over entertainment operations of the company, which includes an 80 percent interest in the air rights above Fashion Show mall where a casino is being planned.
Fashion Show mall, which is owned by Brookfield Properties, confirmed it owns the remaining 20 percent interest in the air rights above the property.
No plans for the proposed project have been filed with Clark County and the Nevada Gaming Control Board. Howard Hughes and Fashion Show declined to comment.
A Federal Aviation Administration spokesman said in an email that the government agency hasn’t conducted any aeronautical studies related to the Fashion Show property, but it did conduct two studies on the block north of Fashion Show — across the street — and found a building up to 640 feet could be constructed without disturbing aviation operations.
While no plans have been filed yet, Howard Hughes has hired a longtime gaming executive Anton Nikodemus to lead Seaport Entertainment. Nikodemus currently serves as president and COO of CityCenter for MGM Resorts, where he oversees operations for The Cosmopolitan of Las Vegas, Vdara and the Aria and the development of MGM Resort’s National Harbor Hotel in Maryland and MGM Springfield in Massachusetts.
Nikodemus also is vice chair on the board of directors of the Las Vegas Convention and Visitors Authority.
A MGM spokesperson said Nikodemus’ last day with that company is Nov. 20.
A SEC filing from Howard Hughes Holdings shows that Nikodemus is taking on the CEO role at Seaport Entertainment on a five-year term subject to one-year renewals and will have a base salary of $1.25 million.
Seaport Entertainment also will control operations of the Las Vegas Aviators Triple-A baseball team, Howard Hughes’ stake in Jean-Georges Restaurants, which has multiple locations including two in Las Vegas, and oversight of the Seaport neighborhood in New York City.
Background in gaming
While Howard Hughes Holdings isn’t currently involved in the gaming industry, that wasn’t always the case. The company’s namesake Howard Hughes, best known for his business empire and work in aviation in the 20th century, accumulated six resorts or casinos in Las Vegas but after his death, those gaming properties were sold as the company focused on real estate development, Green said.
“This is not what they’re known for anymore,” he said. “It’s been about 40 years, since the Hughes Corporation had any connection really with casinos.”
According to a Securities and Exchange Commission filing, Howard Hughes acquired the air rights above Fashion Show mall in 2004. A SEC filing from 2010 said there was no development plan for the air rights above Fashion Show mall at the time and any development plan “will be subject to our obtaining numerous third-party consents.”
David Schwartz, a gaming historian and professor at UNLV, said it is unclear on how fast a casino could get built at Fashion Show since casino developments often face long delays and regulatory hurdles.
He said this plan for a casino from a company that hasn’t put a large focus on the gaming industry could be a good sign for the industry overall.
“People who are not in the market right now want to get in, which is a positive, it means that they think that it’s primed for future growth,” Schwartz said.
