Ellis Island, a hotel-casino adjacent to the Las Vegas Strip, has filed a lawsuit against the organizers of the Las Vegas Grand Prix and Clark County, citing millions of dollars in alleged business losses and expenses due to construction and road closures during the 2023 inaugural race.

Alleged Impacts and Expenses

The lawsuit, filed on April 30, claims that ongoing traffic issues stemming from the race significantly affected customers, vendors, and overall operations of Ellis Island. The property reportedly spent substantial sums, including expenses for employing their own flaggers, to mitigate traffic problems.

Reported Losses

According to spokesperson Lisa Mayo-DeRiso, representing businesses near the race circuit, Ellis Island reported losses amounting to $4 million. Last summer, Ellis Island collaborated with the race organizers, offering grandstands and hotel packages, including a beer garden experience at Turn 4.

Lack of Communication and Promised Access

The lawsuit alleges that race organizers failed to communicate the extent of forthcoming closures affecting Ellis Island. Despite assurances, including promises that entrances/exits for the property would not be affected, the reality differed significantly, according to the lawsuit.

Fluctuating Construction Schedules

The legal documents claim inconsistent timing of road paving schedules by race organizers between June and September 2023. These fluctuations led to daily road closures without prior notice, forcing Ellis Island to bear the cost of employing flaggers to manage traffic buildup.

Legal Allegations and Permitting Issues

The lawsuit asserts that Clark County granted the race a conditional use permit, circumventing some requirements such as a public hearing and greater notification to surrounding property owners. The property claims this decision constitutes a taking by inverse condemnation, demanding full compensation under Nevada law.

Responses from Officials

Both the Las Vegas Grand Prix and Clark County declined to comment on the pending litigation. Attorneys representing Ellis Island did not respond to requests for comment.

Future Plans and Economic Impact

Despite the legal dispute, F1 LVGP CEO Renee Wilm has promised a different approach for the upcoming race. Economic analysts for F1 had previously predicted an infusion of over $1.2 billion in economic revenue for the inaugural race, indicating significant potential for the event’s impact on the local economy.

Conclusion: Anticipating a Different Approach

As the legal battle unfolds, stakeholders await the outcome while hoping for improved communication and minimized disruptions for future events. The upcoming Las Vegas Grand Prix aims to balance its economic benefits with the concerns of local businesses, promising a smoother experience for all involved parties.

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