The mid-rise tower to be torn down holds 200 rooms. The newtower would rise 520-feet and hold approximately 1,000 rooms. Thework, including the renovation of the two existing high-risetowers, would take the total room count to 2,506 rooms from 1,720rooms. Upon completion of the work, the resort would consist of90,000 sf of casino, 56,900 sf of retail, 78,900 sf devoted torestaurants, 32,600 sf of meeting space, 26,600 sf of nightclubs, a22,600-sf spa and fitness center and a 19,000-sf theater. Price anddesign have not yet been solidified.

SBE Entertainment Group LLC of Los Angeles and SanFrancisco-based Stockbridge Real Estate Funds acquired the 18-acreproperty at the north end of the Las Vegas Strip for between $300million and $400 million in August and have since put a couple ofmillion into minor upgrades. SBE, which has hotel, nightclub,restaurant and film divisions, has assumed management of the hoteland its associated food and beverage operations. Sahara's 85,000-sfcasino will be operated by Navegante Group, a casino management anddevelopment company owned by Las Vegas casino executive andentrepreneur, Larry J. Woolf.

Navegante, which operates four Downtown Las Vegas casinos andothers in Elko and Carson City, reportedly has a one-year lease tooperate the casino while executives from SBE Entertainment andStockbridge seek license to run it themselves. Navegante's leasemay be extended for one additional year in three-month increments,according to published reports. Steve Ruef with SBE in Las Vegasdid not respond to a request for comment.