Vol. 4, No. 3, March 2008
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Gold Spike sold again
He was going to convert the aging property into a hip, boutique property that would bring a new kind of gambler to the historic Fremont Street gaming district. Covin was even going to build a new pool and bungalows.
Now, he has decided instead to sell the property for a quick $5.4 million profit. Covin announced he is selling to property for $21 million to John Tippins and Stephen Siegel, Las Vegas investors who recently purchased the shuttered Travel Inn adjacent to the Gold Spike.
Covin was considering a joint venture with the investors, but the two parties had differing visions for the property.
“I really wanted to develop the Gold Spike, but to do it right you really need to have the Travel Inn next door,” he said. “Siegel and I had a different vision.”
Siegel and Tippins said they would renovate rooms and upgrade the casino floor at the Gold Spike. If they get the necessary approval, they plan to attach the casino to the Travel Inn.
The idea of paying $5.4 million more than the property sold for less than a year ago didn’t upset the investors. They would have preferred, however, to buy it when it first hit the market, but Covin beat them to the punch.
“Somehow he moved in and got it from us,” Siegel said. “We had to do what we had to do to buy it.”
The Navegante Group will continue to operate the property until July, at which point Tippins and Siegel plan to make the first casino upgrade by bringing back table games.
