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LAS VEGAS-American Southwest Music Distribution Inc., a lightly traded public company from Hollywood, says it has agreed to acquire Ultimate Sports Entertainment Inc. of Las Vegas NV, which has been planning a $5-billion, 116-acre sports entertainment complex in North Las Vegas. Post merger, American Southwest Music Distribution will change its name to Ultimate Sports Resorts Inc. and focus on bringing the would-be 17-million-sf sports entertainment complex to fruition.

The Ultimate Sports Resort is slated to include multiple sports venues and sports activities, 5,152 hotel rooms, 500 luxury condos, one million sf of convention space, 150,000 sf of gaming area, and high-end sports memorabilia. The hotel would have 3,956 affordable rooms (priced no higher than $89 per night), 980 luxury suites and 216 super-luxury suites. The sport venues would include a 26,000-seat main arena; a 10,000-seat sports arena; a 5,000-seat swim and dive center; three multipurpose, 3,000-seat arenas; a climate-controlled driving range; a shooting gallery; a bowling alley; and an ice rink. Other sports facilities include a bodybuilding gym; in-door batting cages; rock climbing walls; racquetball courts, race car and golf simulators; in-door skydiving; bungee jumping; tennis courts; and billiards.

Ultimate Sports chief executive Matt Rose tells GlobeSt.com that his firm and its in-house architects have been honing the design for the past three years and that he is close to putting the property under contract at approximately $850,000 per acre, or $98.6 million, not including closing costs. Add in approximately $5 billion in additional development costs, and the equity necessary to get the construction loan quickly rises to at least $1 billion.

After raising the project’s construction costs via the private sector had “proven itself unrealistic,” Rose says the reverse merger with American Southwest “made perfect sense.” Once the merger is complete and Ultimate Sports Resorts Inc. is a public company, Rose says the next step will be some kind of share offering to help raise the necessary capital. “Our build-out of [the project] requires a capital structure which includes the participation of Wall Street and the first tier banking community,” he says.

While they have not submitted for project approvals, Rose says his in-house staff has completed project design, project budgets, area programs, site feasibility analysis, construction costs in 2008 dollars, construction schedules, phasing, draw down schedules, and organizational staffing charts for the ownership group. Moreover, Rose says he has commitments from a multitude of amateur sports organizations to use the facility as their first choice for large tournaments.

“Architecturally speaking, we are ready to break ground today,” states his executive summary on the project. “Right now we can claim and prove a better than 90%-plus occupancy year-round, as much as, 12 months in advance.”

In explaining the development site’s location in North Las Vegas, an executive summary on the Ultimate Sports Entertainment Inc. website states first and foremost that the project saves $500 million by not having to pay a premium for Strip land. As for project financing, the executive summary states that “Due to the economic impact we represent in a region, which is hungry for economic growth, the State of Nevada is ready to induce a $4.5-billion economic development bond in support of the construction of our project.”

The project team reportedly includes: AON, for insurance and risk management; Cumming LLC, for construction management; Constellation Energy Group, for power; DC Sports, for sponsorship sales and naming rights; Dworsky Nevada Ltd., for architectural design services; Navegante Group, for casino resort development; and PA Sports & Entertainment, which manages spots facilities; Perini Building Co, for general contracting; and Premier Management Group LLC, for sports marketing.

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