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Delayed Option Payment Ups Land Price to $475M

LAS VEGAS-Had the $40-million option payment for the 27-acre site south of Sahara resort been made in March, the price would have remained at $450 million.

By Brian K. Miller | Updated on June 17, 2007

LAS VEGAS-Christopher Milam recently paid $40 million to maintain his option to acquire 27 acres fronting the Las Vegas Strip. The Texas developer, who is planning a $5-billion development for the site that would include the tallest building in the Western hemisphere, also gained a partner for the endeavor. Earlier this month, the day after the option payment was made, Australian billionaire James Packer announced that the company he controls, Publishing and Broadcasting Ltd., had acquired a 37.5% stake in the project.

The purchase price for the property has risen to $475 million from $450 million. Had Milam made the option payment two months earlier, by the end of March, the purchase price would still be $450 million, according to SEC filings. The $40-million payment and an initial $5 million payment are being applied to the purchase price. The $2.4 million in extension payments that have been made are not being applied to the purchase price. Milam and Packer have approximately one year to exercise the purchase option, as long as they make monthly $2-million-plus payments beginning in October.

Located immediately south of the Sahara hotel-casino, the site was home to the Wet ‘n Wild amusement park, which closed in 2004. The seller is Archon Corp., a locally based public gaming company with one operating casino-hotel property to its name, the Pioneer Hotel & Gambling Hall in Laughlin, NV.

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