The Pinball Hall of Fame Arcade Was Built Over Dream Las Vegas’ Property Line

Dream Las Vegas is the second resort that the Las Vegas Strip will launch in the future. But it recently got a nightmare after it was discovered that the Pinball Hall of Fame arcade, its neighbor, was constructed more than eight feet over their property boundary south of the Vegas Strip.

The new resort’s developer filed a lawsuit in Clark County District Court stating that the arcade’s unlawful occupation hindered Dream from building a draining outlet. Besides, they settled the lawsuit for an unknown sum of money.

Dream Las Vegas features a hotel and boutique casino that would launch in 2025 on the Las Vegas Strip near the “Welcome to Fabulous Las Vegas” sign and Mandalay Bay. The arcade accepted that it crossed the shared property line by about eight feet.
The Dream Hotel Group, a New York-based gaming operator that runs Nashville, Hollywood, and Miami Beach hotels and four luxury properties in Manhattan, purchased 5.25 acres of undeveloped land on Las Vegas Boulevard in 2020. It is near Harry Reid International Airport and south of Russell Road.

The operator partnered with Contour and Shopoff Realty Investments, Southern California companies to buy the land. Contour is a private commercial real estate development firm.

The Pinball Hall of Fame’s encroachment over the property line was discovered early thus allowing it to make a few adjustments before Dream Las Vegas’ construction kicks off. It will be a 20-story tower that will have a 20,000 square feet casino and 531 rooms. The casino had a groundbreaking ceremony in July.

Was the Land Survey Wrong?

Bill Shopoff founded Shopoff Realty. He informed the Las Vegas Review-Journal that he has witnessed other minor encroachments in his 40-years real estate career. But, he has never seen a building crossing its property line and he wonders how a developer can make such a costly mistake.

An image from the Clark County Assessor’s Office’s website indicates in purple that the arcade crossed the property line. It divides it from Dream’s land. Even so, the arcade’s attorneys accused a contractor of making a surveying error.

Court filings state that the Pinball Hall of Fame contracted Lochsa Engineering, a Las Vegas-based firm in 2018 to survey its project site. But it later brought in an affiliate that destroyed the survey.

Dream Las Vegas’ developers discovered the error and alerted the arcade about its encroachment in 2021. Lochsa’s insurance provider settled the claim after the arcade verified it.

part of their agreement stated that Dream had to transfer the affected land to the arcade. Shopoff told the journal that that was his first time hearing about such a land settlement.

Will There Be a Second Survey?

The survey error made the Pinball Hall of Fame occupy a small section of the Clark County Department of Aviation‘s 345 square feet of land. A purple line displays its encroachment at the bottom right part of the photo. It is on a narrow service road in the airport’s private aviation section.

Joe Rajchel, the Department of Aviation’s spokesman informed the journal that they know that the arcade encroached on the Department’s land. He added that they are trying to create a mutually beneficial solution as the encroachment doesn’t affect airport operations.

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