Breaking news: Echelon construction suspended
10:49 AM PT, Aug 1 2008
Boyd Gaming announced today they were suspending construction on the nearly $5-billion Echelon project that is going up where the Stardust once was located. According to the statement:
"Due to the difficult environment in today's capital markets, as well as weak economic conditions, we have decided to delay our Echelon project on the Las Vegas Strip. Our present expectation is to resume construction in three to four quarters, assuming credit market conditions and the economic outlook improves."
Though rumors of problems with Echelon construction financing had been widespread, the resort was actually already being built. I don't think anyone was fully prepared for Boyd Gaming (one of the local companies that really has mastered the Vegas market for decades) to simply bring the project to a total, if ostensibly temporary, halt.
"Due to the difficult environment in today's capital markets, as well as weak economic conditions, we have decided to delay our Echelon project on the Las Vegas Strip. Our present expectation is to resume construction in three to four quarters, assuming credit market conditions and the economic outlook improves."
Though rumors of problems with Echelon construction financing had been widespread, the resort was actually already being built. I don't think anyone was fully prepared for Boyd Gaming (one of the local companies that really has mastered the Vegas market for decades) to simply bring the project to a total, if ostensibly temporary, halt.
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It would have been smarter to leave the Stardust intact. They'd be making money right now instead of losing it. I'm not impressed with Boyd these days.
Posted by: Slothrop | August 03, 2008 at 07:58 PM
A scary foreshadow of what's to come in the Vegas Valley and the country. I write about just a tiny piece of the larger economic downturn...foreclosures and pet rescue. Will be watching to see what hitting the pause button on the Echelon does to confidence and economics in the Vegas community. --fcm http://mrsmomkit.blogspot.com
Posted by: fosterCATmom | August 04, 2008 at 06:53 AM