It has been less than two years since the Stardust was taken down by Boyd Gaming to make way for the future: Echelon, a multi-billion-dollar resort with boutique hotels, exclusive retail, more dining options and hipster nightclubs. But now, instead of a new resort with all the latest amenities going up, there is only an empty construction skeleton on the Strip where the legendary Stardust casino once was located.

I say skeleton because back in August construction on the project was suddenly suspended, according to Boyd, for "three or four quarters" depending on credit markets. Now, Echelon seems to be suffering even further setbacks in moving toward completion. One of Boyd's major partners in Echelon seems unwilling to wait out the credit markets and instead is looking for the exit. That would in theory leave Boyd Gaming with even more money to raise in order to finish the project.

Morgans Hotel Group announced today that they are getting back deposits amounting to $30 million (plus interest) from Boyd Gaming that was meant to develop two boutique hotels (Mondrian and Delano) at Echelon. Morgans is also no longer obligated for $41 million in future funding for Echelon, or for any other construction guarantees on site. A clause gives Morgans (for hundreds of thousands now rather than millions) the ability to come back to the deal. But mostly this revised agreement seems designed to allow Morgans the ability to easily escape any future commitment to Echelon. The statement notes: 

"The amended agreement also limits the amounts that MHG and Boyd are required to continue to fund for pre-development and related costs to approximately $420,000 each. The deadline to obtain construction financing has been extended to December 31, 2009. Each party has the right to terminate the joint venture for any reason prior to December 31, 2009."

It is interesting to note that Boyd Gaming has been in Vegas for generations, run by the Boyd family, and no one expected that company to have these problems completing Echelon. Workers leaving the site the day construction was suspended were even surprised.

Meanwhile, Morgans Hotel Group is an out of market company that swooped in and bought the Hard Rock at the top of the real estate bubble to much local laughter. After some initial stumbles, renovations and expansion at the Hard Rock are now well underway and, according to a representative of Morgans I spoke to this morning as well as Hard Rock's local management, all the construction work being done at Hard Rock is fully funded. Morgans seems to be learning Vegas quickly. Or, maybe the out of town company turned out better able to understand and adapt to a significant drop in business -- an idea alien to the entire history of Las Vegas.

Photo: The Stardust in 2006. Credit: Sarah Gerke

It looks like Stardust will implode in March. For those who want to make one last trip to the legendary casino before the demolition, here are the details, as promised, for the auction of Stardust property now up on the Stardust website:

"Items from the Stardust Hotel and Casino will be up for public auction beginning on Friday, Nov. 17. Prior to the auction, inspection dates are available as follows:

Monday, Nov. 13, 9:00 a.m. - 4:00 p.m.
Tuesday, Nov. 14, 9:00 a.m. - 4:00 p.m.
Wednesday, Nov. 15 9:00 a.m. - 2:00 p.m.
Thursday, Nov. 16, 9:00 a.m. - 4:00 p.m.

Sale starts each day at 11:00 a.m. Pacific Time and will run until all scheduled items are sold. You can bid live or online. You can register today at www.greatamerican.com or for more information call (818) 884-3747, ext. 340. There is no cost to register. The list of items included each day may be modified slightly as need dictates. We are tagging and photographing the items now.

Friday, Nov. 17
Casino Floor and Tables, (no slots will be sold) Sportsbook, Consumer Collectibles

Saturday, Nov. 18
Art, Antiques, Collectibles, Signage, Photos

Sunday, Nov. 19
Art, Antiques, Collectibles, Signage, Photos

Monday, Nov. 20
(mostly for professional buyers) Cooking equipment, Landscaping, generators, Suite furnishings etc.

Tuesday, Nov. 21
Facility assets, Office furnishings, miscellaneous, odds and ends"

Today is the day that the Stardust closes. I have seen numerous casinos open since I arrived in Las Vegas back in July 1999, among them the Palms, Paris, the Aladdin and Wynn Las Vegas. (I just missed the openings of the Venetian and Mandalay Bay earlier that year.)

Closings have been common too. I was here when the Desert Inn (where Wynn Las Vegas now stands) closed in 2000. On the Strip, the Boardwalk and Westward Ho both closed earlier this year. But the size of the Stardust makes this by far the most significant property to close since I arrived. Certainly, there will be many secrets that vanish with the Stardust. The movie "Casino," of course, famously fictionalized the days of mob involvement with the hotel.

In the Sun today, reporter Liz Benston, takes a tour of the Stardust, checking out Frank "Lefty" Rosenthal's suite in the East Tower as well as finding at least one mystery door. The hotel's contents will be auctioned and I will have details on the Buffet when I get them. Also, in the Sun, Kirk Kerkorian sums up probably what a lot of people are thinking today: "Do I feel any kind of nostalgia about the Stardust? Absolutely. ...But as far as taking it down? Listen. What do you do? It's progress. You've got to keep going along."

It is official. The Stardust will not even make it until the end of the year. Boyd Gaming has announced that the Stardust will close Nov. 1. In its place, of course, will be the Echelon Resort, which is expected to cost $4 billion and open in 2010.