LAS VEGAS (CN) – Plans to build an Elvis Presley-themed resort on the Las Vegas Strip took a major hit after a bank accused developers of defaulting on a $280 million loan. It’s the latest in a string of high-dollar construction projects on Las Vegas Boulevard threatened by lawsuits.
Landesbank Baden-Wurttemberg claims in Clark County Court that FX Luxury Las Vegas failed to repay the loan by January to develop 17.72 acres of land for a “multi-use condominium, hotel, casino and retail project incorporating an Elvis Presley theme.”
The bank says it has recaptured about $21 million, leaving $259 million still owing.
In April, a group of developers at the Fontainebleau Las Vegas high-rise construction project on the Strip accused 11 banks of refusing to fork over their promised $800 million to finish the job. Construction of that project has since slowed.
In March, the $8.8 billion CityCenter mega-resort on the Strip – the most expensive private commercial development in U.S. history – was threatened when a subsidiary of Dubai World Development sued MGM Mirage with accusations of mismanagement, blowing the budget and forcing the bank to bankroll $5 billion more than originally planned.
The plaintiff in the latest lawsuit is represented by Rodney Jean of Lionel Sawyer.