The economic costs of not demolishing the empty but asbestos-plagued towers at the former Riviera Casino would cost the Las Vegas economy nearly billion over 30 years.
The Las Vegas Convention and Visitors Authority (LVCVA) is prepared to have a contractor demolish the casino’s two empty hotel towers in separate implosions this year.
But a Clark County lawsuit seeks to stop the implosions, saying the asbestos inside the two towers poses an environmental hazard.
In response, the LVCVA commissioned an economic impact study, which showed leaving the casino empty and in place would costs some $15.8 billion in economic activity over 30 years.
The LVCVA bought the 60-year-old Riviera for $186 million in 2015 and is in the process of razing it to make way for an expansion of the Las Vegas Convention Center. Demolition costs are estimated at $42 million. The first phase of that expansion includes the demolition of the historic casino and replacing it with an outdoor exhibition area in time for a large construction-industry trade show next year.
Halting the demotion process now would cost an estimated $213.8 million during the first year alone, including the cost to buy the property, plus demobilizing demolition efforts already underway and breaking existing contracts.
It also could cost some $495 million in lost annual rentals, according to the LVCVA report.
