The Lady Luck Hotel and Casino in Downtown began demolishing parts of the property today.  Shuttered since late 2006, the hotel had promised a major comeback as a boutique destination but the souring economy quickly derailed those  plains.

From the RJ:

The CIM Group, a California development company in charge of redeveloping the Lady Luck casino, started tearing down a concrete-and-steel building skeleton at the corner of Fourth Street and Stewart Avenue that Mayor Oscar Goodman recently referred to as a "carcass."

He also directed city staff to scrutinize the site for code violations, expressing frustration that nothing had been done on the project for two years. No violations were issued, said city spokesman Jace Radke: "They just worked with the city."

Construction equipment was ripping away at the structure today.

CIM Group did not immediately respond to a request for comment. Economic conditions have been blamed for delays in starting the project.

The Lady Luck closed in 2006, and CIM bought it in 2007. Last year, the company reached a development agreement with Las Vegas that would give it access to city-owned land around the planned Mob Museum if renovations to the casino started by December. That deadline could be extended.