Members of the Gardnerville Town Board refused to sanction a proposal that would require casinos with unrestricted gaming licenses to build at least 100 hotel rooms, despite arguments from established gaming businesses.
Proponents reduced the room requirement from 200, the figure used when they presented the proposal to the Minden Town Board, but Gardnerville's town board members didn't budge.
Board Chairman Mike Philips said the occupancy rate in Carson Valley from 2000 to 2006 was just 59 percent.
"It was a little higher at the Lake, but why should we build more hotel rooms if we can't fill the ones we have?" he said.
Marketing Director Bill Henderson of the Carson Valley Inn said 59 percent is an average annual figure and does not take into consideration that the rooms are full on weekends.
Board member Randy Slater wasn't satisfied.
"You can't fill those rooms six months of the year, yet you're trying to convince us more rooms will bring in more money," he said. "Why isn't this protectionism for casinos?"
Topaz Lodge General Manager Rick Ross said the Topaz Nugget won't be able to reopen without substantial reinvestment if this ordinance is enacted because the facility doesn't have the required rooms, but he feels the sacrifice is worth the long-term benefit.
"Every jurisdiction that has enacted this ordinance is now doing pretty well," he said. "When we're full, every other entity in the area is also full."
A nonrestricted gaming license is a privilege and those acquiring one should be committed to this type of expanded plan. With this type of development, the likelihood of pulling in more tourists would be very good, Ross said.
"It will benefit a lot more people than the three of us," he said. "The increase in T.O.T. (transient occupancy tax) will benefit libraries, parks and tourism."
He said Douglas County is fortunate to have Skip Sayer, one of the most talented marketing professionals in the area, as head of the local Chamber of Commerce, but he needs the marketing dollars from the Transient occupancy tax for tourism promotion.
"With Sayer, it only makes sense that we'll bring more people to the valley," he said.
The C.O.D. Garage could be leased to a Slot World, a deal that could be seriously impacted if the ordinance is passed. Current owner Robb Hellwinkel said he has not seen any solid data to back up the assertion that more rooms will bring more tourists.
"I've been soliciting big box entities and smaller businesses for the C.O.D. Garage," he said. "They all knew where Minden was, but they said we didn't have the right demographics or population.
"My deal is not a done deal and getting a gaming license is very difficult," he said. "I'm asking people to get the facts before stereotyping, or making up their minds about what entities are good for the community. I believe my people (Slot World owners) are."
Philips said their decision would not be based on any ongoing business negotiations.
"This ordinance is not necessary," Slater said. "The county has all the control it needs regarding gaming under Title 5. I feel this ordinance is protectionism and I'm afraid of what it can lead to. The government's position shouldn't protect a business."
"It's a matter of protecting what we have in the Valley now and for the future," said Bill Henderson, marketing director for the Carson Valley Inn.
State law requires 200 rooms for an unrestricted gaming license in counties with populations of greater than 100,000 people, but only Washoe and Clark counties are affected at this point.
Carson City passed an ordinance similar to the state's in November 2002, he said.
Susie Vasquez can be reached at svasquez@recordcourier.com or 782-5121, ext. 211.
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