The Las Vegas Country Club board of directors decided to preserve the 36-year-old landmark and the lifestyle it represents, rather than accept a $40 million buyout offer from Las Vegas developer Steve Wynn.
Members originally were recruited when the golf course opened in 1968 'to join a select group of members in the most lavish new country club in the West.'
But on June 18, Wynn Resorts sent club members a letter offering $50,000 for each full membership and $25,000 for each half membership, as well as offering to pay off the club's $7 million debt.
In the next 10 days, there was a flurry of rumors that other potential buyers were also interested in buying the golf course and an exchange of letters in which the board of the club called the takeover bid 'hostile' and urged members not to accept it.
But on Wednesday, the club's board voted to let the Wynn offer expire with no response as of 5 p.m. on Thursday.
Dale Telford, general manager of the country club, said neither the board nor the club's members have any interest in selling the golf course or related improvements.
'We remain committed to the lifestyle and the community service opportunity that led (members) to join the club in the first place,' he said.
Denise Randazzo, vice president for public relations and advertising at Wynn Resorts, has said her company needs the golf course to handle the overflow demand that will be created by the construction of a recently announced second tower at Wynn Las Vegas.
Gaming industry experts generally said the move would make sense for Wynn as a resort operator and for Las Vegas, although some suggested he might really need the property's water rights to develop the second tower at Wynn Las Vegas.
Wynn Resorts executives could not be reached Friday for comment.
Despite a statement distributed by BBX Equities Group claiming to have offered $80,000 for memberships and rumors other development groups were making offers, Telford said the Wynn offer is the only one that has been made to the board.
Furthermore, he said the board has received no response from Wynn Resorts since its offer expired.
However, club members who asked not to be identified said the majority of members were strongly opposed to any sale of the country club especially at $50,000 per membership.
In a letter to members dated June 28, the board said the Wynn proposal was an attempt to buy the club's assets for a bargain price.
'They have not offered a control premium nor have they made a proposal which is based upon the true appraised value of the real estate, improvements and water rights,' the board said.
Source: Las Vegas Review-Journal (Nevada)
