Fitzgeralds Casino is Sold

[Thomas]

A Chicago-based development company has agreed to buy Fitzgeralds Casino & Hotel in downtown Reno for an undisclosed price, a newspaper reported.

Fernando Leal, managing partner of L3 development, told the Reno Gazette-Journal that the company plans to turn the aging resort into a boutique hotel-casino.

"We have plans to look to improve every aspect of that property in its entirety," Leal said. "The exact specifics, it's still too early at this point."

The agreement lists L3 affiliate DRW Nevada LLC as the buyer of record, and requires the sale to be completed by Oct. 31.

The 351-room hotel-casino is the last of four owned by Fitzgeralds Gaming Corp. to be sold off after the company filed for Chapter 11 bankruptcy protection in 2000.

A court-appointed supervisor, Jeffrey Gilbert, will continue to run the casino for creditors until the sale is completed.

Leal's company, which specializes in renovating commercial properties, bought the former Golden Phoenix Hotel & Casino in downtown Reno after it was shuttered at the end of 2005.

It's converting that property into retail units, a fitness center and a 380-unit condominium tower that will be known as the Montage.

Gilbert praised L3, saying it has demonstrated "a very constructive vision" for the downtown.

"I am sure that Mr. Leal and his partners will bring dynamic ideas and improvements to the property that will help reinvigorate the Fitzgeralds and restore it to its preeminent place among Reno's gaming properties," Gilbert said.

Plans call for the casino portion of Fitzgeralds to be run by an outside operator, which L3 still is trying to find.

Leal said a boutique hotel would help enhance the nearly $160 million investment the company already has made in conversion of the nearby Golden Phoenix into the Montage.

Gilbert said he would soon file a motion seeking approval of the Fitzgeralds sale in Washoe County District Court.