By Daily Mail (U.S.) | Created at 2024-09-25 18:11:12 | Updated at 2024-09-30 21:36:35
5 days ago
An iconic casino known for its ghost stories, $1.99 breakfast and multitude of slot poker machines is officially in foreclosure after 78 years and closing its doors for the last time.
Tahoe Biltmore Lodge and Casino in Crystal Bay, Nevada, is expected to sell at a public auction - and the highest bidder will claim the once loved historic hotel as their own, according to SFGate.
The property will be sold 'as-is'.
Tahoe Biltmore is a landmark of the idyllic Crystal Bay community - standing right near the California-Nevada state line on Lake Tahoe's north shore.
Despite not being the most 'glamourous' casino, the property was loved by locals and others who wished to catch a little glimpse of Lake Tahoe.
Tahoe Biltmore Lodge and Casino, in Crystal Bay, Nevada, is officially in foreclosure after 78 years and is closing its doors for the last time
The once lively casino and hotel is survived by only darkness - chain fences and shattered windows riddling the property
Chain link fences, plywood boards on the doors and shattered windows are now all that remain from the once lively property.
The looming sign for the hotel on Highway 28 hangs as a silent reminder for passerby's that its abandonment has been a long time coming.
Its doors have been closed since 2022 - remaining as an open casket for those who regularly stopped in.
Lake Tahoe Casino and Lodge said that it'd remain open until the end of April 2022 for a 'last hurrah'.
But in the middle of April, those visiting to pay homage to the final days of the legendary institution were surprised at the total disrepair and emptiness - despite demolition beginning May 1.
The property is expected to sell at a public auction - where the highest bidder will claim the hotel as their own
The property borders on the California-Nevada state line and lies in Crystal Bay, Nevada, on the North Shore of Lake Tahoe
Once home of the $1.99 breakfast where late-night partiers filled the booths to enjoy breakfast dishes all through the night, Cafe Biltmore was completely shuttered even before its final viewing date.
The bar area was empty - not a bartender in sight.
Blackjack, roulette and craps tables that enthralled visitors for hours were already gone.
A security guard still in a button-down shirt with a Biltmore logo seemed to be the only evidence of human life.
But the property has been riddled with real estate and development problems for decades in counting, SFGate added.
Tahoe Biltmore was once home to the legendary $1.99 breakfast that was even served throughout the night for late-night party-goers and gamblers to enjoy
Halloween parties and live music events were a daily occurrence for the hotel
Roger Wittenberg, inventor of the composite deck material Trex, purchased the property in 2007 for $28.4 million with promises to redevelop the hotel under an entirely new project called Boulder Bay - a 300-room hotel.
The permit to redevelop the property was approved in 2011 and still stands today, but the property owner must be able to show that progress is being made on the intended project.
But a year after the permit was approved - which was in the height of the nation's financial crisis - Wittenberg ran into financial troubles and sought help from a San Francisco developer.
'The timing just wasn't right, economically,' said Boulder Bay President and Wittenberg's daughter in 2017 of the projects stall, SFGate reported. 'And at the end of the day, that would have hurt the community.'
EKN Development Group, a Nevada LLC, then purchased the property for $56.8 million in 2021.
The fate of the once-loved hotel by locals and visitors has an unclear fate after ownership and projects changed and fell through over the years
Roger Wittenberg, inventor of the composite deck material Trex, purchased the property in 2007 during the height of the nation's financial crisis and ran out of money for upcoming projects
The property was expected to be redeveloped into a Waldorf Astoria - upscale and luxury hotels that reside in the world's top destinations.
But the property owner, Newport Beach-based EKN Development, failed to fulfill on its loan last spring.
In July of this year, a notice of trustee's sale - a recorded document that gives notice of the date, time and location of an upcoming public auction of property facing foreclosure - was filed.
The document stated that the property was in default and would be up for auction publicly.
More than $110 million is the remaining principal on the loan, interest, fees, charges and expenses.
The Tahoe Biltmore said that it would remain open until April 2022 for a last 'hoorah', but locals visiting to pay homage in its final days were surprised when everything was already gone
The hotel and casino was filled with more than 200 slot poker machines as well as tables for blackjack, roulette and craps
The document also states nine parcels in Crystal Bay that surround the entire Tahoe Biltmore Lodge and Casino property which will be sold 'as-is' during the auction.
The date for the auction was originally scheduled for August, but due to attempts to restructure the existing loan, the date has been postponed to October 8, SFGate added.
A week after the initial auction date was listed in August, EKN Development posted a video to Instagram which showed a construction crew demolishing the Tahoe Biltmore site.
Ebbie Nakhjavani, the president and CEO of EKN Development, a Nevada LLC, said in the caption: 'We are incredibly excited to continue this extraordinary project as we lay the groundwork for its next phase', SFGate added.
And on Tuesday, a statement said that EKN is working diligently to restructure the pre-existing loan and plans to complete the process in the next three to four months.
The Tahoe Baltimore was a historic casino and hotel that opened its doors in 1946 as a rival to Cal Neva, a hotel and casino right across the street who also met its demise in 2009
The flying-saucer design that used to light up and catch the attention of passersby on Highway 28 is left dark and rotting
'In the meantime, EKN is continuing to invest in the project and construction activities are continuing at the site,' Nakhjavani said.
Yet public records show Nakhjavani is not a stranger to financial troubles.
In 2014, he filed for Chapter 11 bankruptcy alongside EKN Development Group who was also listed in the filing.
And the fate of the iconic property still remains up in the air.
The Tahoe Baltimore was a historic casino and hotel that opened its doors in 1946.
In more recent years, the hotel was known as the home of its familiar ghost - Mary - where people would come to experience her 'haunted presence' for themselves.
The corridors used to be filled with people making their way to gamble or to attend events hosted by the hotel such as Halloween parties and live music performances.
But since the pandemic hit, locals of the area feel as though the changes happening around Tahoe have been increasingly pronounced - and they're skeptical if any of the changes favor those who live there.
'You don't have to do much but look around to see how bad it is,' Mike Tuhey, a Tahoe native, told SFGate.
'You can't have only second, third and fourth homeowners mixed with people who are working remote. There's no housing; there's no opportunities. There's nothing to afford.'
Despite the hotel not being known for its 'glitz and glamour', its history is filled with stories - including the famous ghost, Mary, who is said to live in the hotel
The property serves as an empty grave to locals and residents who became regulars of the casino throughout the last 78 years of being open
'It's hard as hell to live up here, to stay here,' Tuhey added. 'They need to do something for people besides put more condos up. That's not an answer.'
The original owner and builder of the property, Joseph Blumenfeld, wanted to create an alternative to the gambling hotel and casino that resided right across the street, Cal Neva.
But in a similar fate, Cal Neva's owners foreclosed and the property went into auction in 2009.
No bids were ever received, and the property sat empty for five full years.
In 2018, billionaire, Larry Ellison, purchased the property for $35.8 million, but sold it for an undisclosed price to a Denver-based real estate and development firm in 2023.
After years of vacancy, Cal Neva finally has a shimmer of hope for a future.
But as for now, Tahoe Biltmore's future remains unclear.
