Quote:
Originally Posted by madlex
Rio doesn’t need major repairs but a total remodel or demolishing and rebuild. Remodel of the Palms costs North of $600mil, the Rio will probably be more expensive but that’s known to everyone who stepped foot into the building over the last couple years. Not only to potential buyers.
#1 reason why an MLB stadium at that location is not very likely is the cost of buying the parcel and tearing down the Rio. That’s gonna cost a billion on top of the billion to build a ballpark and the billion expansion fee.
There have to be cheaper viable locations for a stadium than that one.
I wrote an article about this. Tax records show Rio's land with buildings is worth $538 million. That assumes the enterprise value is $0 in a sale price, which it isn't.
The Riviera demolition was about $45 million. Rio must be more than that with its taller, bigger buildings, though asbestos wouldn't be an issue like it was at Riviera.
Now we're over $600 million just for the land without accounting for what Rio's value as a going concern is. The Raiders paid $77.5 million for its land that required virtually no site work.
There are far better sites for a stadium, even close to Strip. Wild Wild West has almost 60 acres, which is about the size of the Raiders stadium lot, and you wouldn't need as much land for MLB. Demolishing WWW would be far cheaper, too, and Station has shown an interest in selling it.
There are also hundreds of acres of one-story industrial buildings all along the I-15 corridor. Assembling those would also be a cheaper alternative.