Nov 26,1978 Fla Casino Defeat Shakes MB Hotelmen - Nevada Gaming Firms Drop Miami Options CIO •Attanttt Jonrna
AND
THE ATLANTA CONSTITUTION yo � � �S c�.s, REV.
ATLANTA,
SUN. 533,548 D. 12,504
NOV 26 1978 lit4 Nov 2 6 1978 ' .. _. ,
Fkri Nevad G am F i �
Casino Defeat Shakes Drop Miami Options
Miami Beach Hotelmen A resounding defeat by 875 million hotel - casino in
Florida voters of a proposed Atlantic City, had an option
By CHARLES F. HESSER renovate dozens of aging casino enabling amendment on the 540 -room Castaways
specks to The Journal- constitution hotels. Nov. 7 has resulted in two
Hotel in
MIAMI — Miami Beach • Owners of the Fontaine- Nevada gaming concerns Nugget
business interests, after losing bleu, Miami Beach's flagship dropping The Nugget disclosed
option it had
P dAping their options on paid 8300,000 for its on
the referendum on legalizing • hotel, are spending 812 mil- Miami-Beach hotel properties. the Castaways while Webb
casinos, wonder what's next. lion for renovation. Some Gaming giant Del E. Webb
Casinos were supposed to other hotelmen also are in p rop rt options put a pri . its
C
have meant almost instant vesting their own funds, or orp• c e on Nugget Inc. property options in Miami.
P�Pen m
tY• borrowing money to refur- had acquired d options as in-
Apoll of Greater Miami bosh, borrowing waiting for govern- surance bets in the event Both companies acquire'
businessmen, shortly before ment action. Florida voters approved the options early in the casino
casino gambling for the "Gold campaign when polls in-
the vote on casinos, showed
that while most of them said • Miami Beach voters last Coast." dicated there was a chance
they would cast their ballots month approved two crucial Webb, which owns seven that voters would approve the
against table gambling, they bond issues: one calling for casino operations — more constitutional amendment
thought it would bring in the transformation of Arthur than any other company in the allowing casinos in an area
more tourists and help the en- Godfrey Road and stretches nation — had taken options on restricted to Miami Beach and
tire area financially. of Collins Avenue and Indian the Barcelona Hotel and an a portion of neighboring
While there is much gloom Creek Drive into a first -rate adjacent property, the New Broward County to the north.
in the Miami Beach business shopping center, and the other International Hotel.
community, particularly providing $6 million for Webb also owns ca
among hotel operators, there desperately needed parking Golden Nugget, which intere and real estate
is hope that a combination of facilities. operates the Golden Nugget interests outside of Nevada.
private and governmental in - •• Dade County Hotel Casino in downtown The company is based in
tY voters a
genuity may eventually re- proved a 2 percent P Las Vegas and is developing a phoenix. '
store the nation's former win - that will produce r ore hotel than
ter playground to its lofty $4 million annually for
position. promoting tourism.
There are these plus fan Miami Beach's half dozen
tors:
• A proposed 8635 million top-flight, ocean -front hotels
South Sh3re Redevelopment are anticipating a good win -
project that is to replace 235 ter season, based on advanced
blighted acres on the southern reservations, but for a num-
ber
tip of Miami Beach with a fro of other smaller, ocean -
luxury residential and tourist front hotels and scores not on
resort. the Atlantic Ocean, the out-
* The on -going 860 million look is not promising.
program to widen the eroded The Miami Beach hotelmen
beaches all along Miami can largely blame only them -
Beach's famed Hotel Row. selves for their plight of re-
• Miami Beach hotelmen cent years.
have received some encour- Miami Beach hotel owners,
agement in their plea to the with the cooperation of city
federal government to guar- officials, years ago expropri-
antee 860 million to 8100 mil-
lion in low interest loans to See CASINO, Page 31-C