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Golden Gate owners purchase Fitzgeralds
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Fitzgeralds in downtown Las Vegas, is seen Dec. 5, 2001. The hotel was sold for an undisclosed price to the owners of the Golden Gate. » Buy this photo
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LAS VEGAS REVIEW-JOURNAL
Updated: Sep. 30, 2011 | 9:48 a.m.
Owners of the Golden Gate are making another big bet in downtown Las Vegas with the purchase of the 640-room Fitzgeralds from the estate of former owner Don Barden, the first black man to own a Las Vegas casino.
On Thursday a probate court in Detroit, Barden's hometown, authorized estate trustees to sell the casino, said Derek Stevens, majority owner in the Golden Gate.
The deal, disclosed to employees at both properties Thursday afternoon, puts Fitzgeralds in the hands of an operator who has been growing in downtown Las Vegas despite the tough economy.
"I'm putting my money where my mouth is on this one," Stevens said.
The emails disclosing the sale to employees stated that Stevens has no plans to lay off any of the approximately 600 people working at Fitzgeralds. To the contrary, Stevens hopes to increase the staff to more than 800 workers. There are also plans to renovate the casino's second floor, upgrade the hotel rooms and eventually rename the property.
The sale still needs approval from the Nevada Gaming Control Board and Nevada Gaming Commission.
The new ownership will be divided between Derek Stevens and his brother Greg Stevens, with Derek Stevens holding the majority interest.
Terms of the deal were not disclosed.
Stevens said the deal was a stock purchase and that the property will be debt-free for the new owners, who hope to take over by the end of October.
Stevens was pursuing a purchase of Fitzgeralds for months. But the effort came to a halt in May when Barden, who had been ill, died.
Fitzgeralds' two-level casino attracted Stevens to the property. He hopes to remodel the second-floor portion to reflect a "vintage Vegas" theme.
The casino property also has an 11-story parking garage that can accommodate more than 600 vehicles and hotel rooms that are large enough to be remodeled to a level that reflects the taste of modern visitors.
"We have a lot of work to do here," Stevens said.
The hotel was built in 1979 and formerly operated as the Sundance. It sits on several parcels of land, some of which were sold with the hotel and some of which are held by landowners who lease the ground to the casino operator.
Property records show Barden Nevada Gaming LLC paid about $11 million for the property it owned at 301 Fremont St.
The pending deal is the second big downtown move by Stevens in recent weeks. Earlier this month, he announced he would spend $12 million expanding and refurbishing the Golden Gate building, which was built in 1906 and is the oldest of the downtown gambling properties.
Independent downtown researcher Frank Martin said he thinks the Fitzgeralds purchase is a good deal for the market.
"In my opinion, the owners are making a good strategic move for the future," Martin said.
But he added that based on continuing stagnation in downtown gambling revenue, it's not likely the casino floor will add new workers.
"He may very well want to increase employment," Martin said. "But I suspect that he wants to increase employees in food, beverage, entertainment, and room departments."
Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-229-6435.
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Lvfacts101 -- You throw out judgements so easily -- personally, I would never state that one is clueless lest you actually be the clueless one. 777s has some good points and ground leases can be a significant determinant of the ability of the leasee actions on the property. It sounds like Lvfacts has fully studied the Binion's ground leases, but I concur with Lvfacts on the LV economy -- it continues to spiral down and with the growing competition from Indian gaming and Macau -- well I do wish Stevens the best in making this a successful operation. He'll need all the Lady Luck he can get.
they need new management at fitz the way they hire employees is stupid. someone with 10 years exp. cant even get a job there and the service their is bad with current employees.
So Don Barden is Dead!!!!! No great loss.He was a thug who sent out his goons in Detroit if people didn't pay their cable bill
I very much want the new Fitz to succeed, and wish the Stevens much good luck. They are going to have to pour at least $25-50MM into the joint to make it nice again.
Nice spelling Ted.
Steal: To unlawfully take what is not yours.
Steel: A building material made from iron ore.
ready: to be prepared
reddy: Helen. A female singer in the early 1970s
Interesting move. If only someone would make the Neonopolis disappear.
@Southside Teddy: How can Barden's properties in Detroit be dumps. He never owned any casinos in Detroit, or Michigan for that matter.
@nhartvig: How can you consider Fitzgerald's an historic name. It's only had that name since 1987.
Apparently the naysayers are once again out in full force. Most, of course, have no business experience and haven't two dimes to rub together but, in their empty-headed way, reveal how ignorant they truly are. Caudill invested some 32 million in Binion's and it wasn't because of "ground leases" he ran into trouble. It was the economy, stupid! The economy is a non-partisan leveler, does not discriminate between races or genders and affects all businesses alike. 777 is clueless!
Fitzgeralds is an historic name. Keep the name. Nostalgia is what Old LV is all about. So freshen it but do not attempt to become something that is to compete with the modern day properties, you simply cannot. You have to sell the differences.
The Stevens still have their hands full trying to renovate and manage the Golden Gate which is a tiny historic property. Just because they have family money and like Las Vegas does not mean that they are in any way qualified to own, manage, market and renovate a 640 room property with a broken-up gaming floor. Plus Fitz has several ground leases under it which can be the kiss of death downtown if not handled well (ask Terry Caudill who bought Binion's with 8 ground leases, and who still has not reopened the rooms there). There were several other competent bidders for Fitz, why the Stevens Brothers? The property needs a full renovation inside and out, it looks like 1979 Detroit.