Plans for Reno’s Firecreek Casino are Delayed

Posted on: December 8, 2023, 06:11h.

Last updated on: December 8, 2023, 06:11h.

Elevation Entertainment is stopping the development of the Firecreek Crossing Resort-Casino in Reno due to challenging financial market conditions.

Elevation Entertainment
Downtown Reno, Nevada. Elevation Entertainment is halting plans for the Firecreek Crossing Resort-Casino in the city. (Image: Visit The USA)

The company’s decision comes around a year after initially announcing the plans for the venue. The Firecreek Crossing Resort-Casino was anticipated to be Reno’s newest casino, following the debut of Legends Bay Casino in Sparks the previous year. Legends Bay is the first casino to be built from the ground up in Sparks in nearly three decades.

“We love Reno, but given the challenging financial market, we are on hold for the time being. If and when the time is right, we would love to bring a first-class product to the market,” stated Elevation in a recent report by Fox 11.

Elevation Entertainment has several commercial and residential real estate endeavors in progress, including operating Seven Mile Casino in Chula Vista and Stones Gambling Hall in the Sacramento region.

Firecreek Casino Plan Meets Macro Reality

Elevation has not disclosed the anticipated cost for constructing the Reno casino hotel, but Legends Bay cost $120 million to develop, and other properties in the region have traded for close to $200 million.

As Elevation requires financing to bring Firecreek Crossing Resort-Casino to life and with interest rates residing near the highest levels in two decades, this is not the opportune time for companies to borrow large amounts of capital.

Elevation as a privately held company relies on private markets to build projects, making it difficult to raise the necessary capital via debt markets. Additionally, defaults on commercial real estate loans are rising, prompting banks and investors to be cautious when extending credit to new, large-scale developments.

Should it eventually come to life, Firecreek Casino will have 201 guestrooms, 48 suites, and a casino, Firecreek will feature a lobby bar, beer garden, multiple restaurants, and a food court, as well as a public park.

Checkered History for Firecreek Casino Site

If the Firecreek Crossing Resort-Casino eventually opens, it will be located at Kietzke Lane and South Virginia Street, a site that has previously seen failed gaming venue proposals.

Prior to the coronavirus pandemic, Station Casinos’ parent Red Rock Resorts had planned a development at a nearby location. However, the effort was hindered by the global health crisis.

Currently, the lot on which Elevation was looking to build Firecreek remains vacant and serves as a Christmas tree sales venue in December with little else the rest of the year.

Source link

Leave a Comment