An ordinance that would require applicants for nonrestricted gaming licenses to include 200-room hotels drew the ire of Minden town board members Wednesday who said the proposal smacked of protectionism.
"I'd like to know what problem we are solving with this ordinance," said board member Bob Hadfield. "Why do we need the law? Who are we protecting?"
Lawyer David Wasick, representing Carson Valley Inn, Topaz Lodge and the Holder Corp., owner of Sharkey's, said the proposal was to insure stability of economic growth in Douglas County.
Wasick said the ordinance would "equalize the playing field" for established businesses such as his clients and prevent existing casinos from being "cannibalized" by smaller operations.
He said the ordinance would follow the lead of other counties, including Carson City which passed a law that mandates 100-room hotels with unrestricted gaming licenses.
"Would Sharkey's be able to be built today if this ordinance passes?" Hadfield asked.
"No," said Wasick.
"Let's be blunt," Hadfield said. "This is about the C.O.D Garage."
Wasick said discussion of the ordinance began before the Hellwinkel family put together a deal to lease their historic downtown Minden garage to a casino for slot machines and a restaurant.
"In essence, any casino with an unrestricted gaming license would have to have a certain number of hotel rooms," said chairman Ross Chichester.
"My concern is the Hellwinkel property, Mike Gilbert's project, the old Midland Gas station. I have no problem with new construction, but what happens when you're trying to retrofit an existing structure?" Chichester asked.
Hadfield also pointed out that the Carson Valley Inn with its initial 99 rooms would not have been built under the ordinance.
"It sounds like you've made up your minds," said Bill Henderson, director of sales and marketing for Carson Valley Inn. "It doesn't sound like there's anything I can say to change your mind."
Henderson said his objection to small casino operations is that "they're not bringing anything new to the party."
"The whole nature of this business has changed since we opened," he said. "You don't have to make the investment we made. It's easy to open up the doors and put slot machines in.
"That was not the case with Carson Valley Inn. We lost a lot of money the first three years," Henderson said.
He said the idea for the room requirement originated in Carson City.
"People in Carson City had investments and saw little places open, not bringing anything new to the party, just carving up what they already had," Henderson said.
"This has nothing to do with the C.O.D. Garage. Nobody believes that because of the timing."
Henderson said proponents of the ordinance supported major projects because that's what brought visitors and tourist dollars to the area.
"There is no reason to come to Minden, except for a command performance - somebody dies, somebody graduates or somebody is getting married," Henderson said. "Or, somebody puts a package together with rooms and, say, golfing. We need to do something to make the pie bigger."
C.O.D. Garage principal Robb Hellwinkel said he could understand the casinos' fear of competition.
"That's what scared the hell out of me. We sold our auto dealership when we heard there was going to be an auto mall in north Douglas County," he told the town board.
The Hellwinkels are considering a lease with the owners of Carson City's Slot World for a casino, bakery and ice-cream parlor at their historic garage on Esmeralda Avenue in old-town Minden.
"My project hasn't come in, it might not even happen," he said Wednesday. "But what if this was a restaurant? Would all the restaurant owners stand up and say, 'No. We don't want a competing restaurant?'"
Hellwinkel said the proposed ordinance targeted his project.
"It's about the C.O.D. project. It would take a lot to convince me otherwise," he said.
"I would like to see that data that by adding rooms, you will bring tourism here. We're not going to have Disneyland here."
Chichester asked the Gardnerville Town Board on Tuesday to review the ordinance.
He distributed documentation that showed Carson Valley hotels haven't filled all the rooms they have in the past six years.
"I personally feel this approach may be better for new construction," Chichester said. "But in order to preserve the nature of our towns, we need to look at gaming as a possibility. I see it as limiting competition. If there is a need for more hotel rooms, why are the occupancy rates so low."
The Gardnerville board has set a special meeting for noon June 13 to discuss the issue.
County commissioners will hold the first reading of the ordinance at their meeting on Thursday in Stateline.
DETAILS
Two meetings are set next week on a proposed ordinance that would require applicants for nonrestricted gaming licenses in Douglas County to include 200 hotel rooms.
- The Gardnerville Town Board has set a special meeting for noon Wednesday at the town office, 1407 Highway 395, Gardnerville. Information, Jim Park, 782-7134.
- Douglas County Commissioners will hear a first reading on the ordinance Thursday at their meeting at Stateline, 175 Highway 50, (Kingsbury). The meeting begins 1:30 p.m. Information, 782-9012.
n Editor Kurt Hildebrand contributed to this story.
