Minden Town Board members turned down a request from the developer of the proposed C.O.D. Casino that businesses and residents help pay for a parking lot and landscaping around the former automotive garage.
The town did agree at its July 1 meeting to pay $175,000 to repair Esmeralda Avenue, but said that was part of its regular street maintenance.
Jeremy Hutchings, representing developer Scott Tate, had proposed the casino act as the bank and finance the $389,500 in overall improvements with the town contributing $227,800 and Minden businesses $72,600 to finance street and sidewalk improvements and the parking lot.
The proposal called for the Minden businesses to make their payments based on profits from street fairs.
"That figure really jumps out at me," said town board Chairman Dave Sheets. "How long would it take the Minden merchants to pay that back?"
Town board members said they endorsed the project, but didn't want to set a precedent by using public funds to pay for a private parking lot.
"Obviously, we've got no problem doing the street," said board member Bob Hadfield. "The parking lot is a precedent I don't want to set. It's not town-owned land. If the business is successful, you'll fill the parking lot all the time.
"I love the project. It's a first-class operation and I am not concerned about competition. It's an excellent opportunity for Minden to get business back."
Gary Leiss, developer of the proposed Copper Peak project in Minden, said he didn't think the public should pay for a private venture.
"I'd love to have somebody step up and pay for my parking lot," Leiss said.
County Commissioner Dave Brady, who lives in Minden, said as a private citizen, he would expect a cost recovery plan for the town's investment.
"You're asking for 78 percent of these costs to be borne by the public and the businesses, but I see no participation in the profits," Brady said.
Hutchings said the project is moving forward with construction expected to begin in September and completed in fall 2010.
Plans are to convert the 98-year-old C.O.D. Garage in downtown Minden to a 14,303-square-foot casino and bakery. The building has been vacant since 2003.
Tate has said the project is a $5 million-to-$7 million-investment and he hopes to employ 50 to 75 people.
Fred "Brick" Hellwinkel and his sons Don and Dan were associated with Clarence O. Dangberg's C.O.D. Garage from its opening in 1911.
The C.O.D. Garage was one of the oldest operating commercial garages in the United States. The garage also holds the record for the oldest AAA touring service in Nevada and one of the oldest Chevrolet and Buick franchises in the United States.
Don Hellwinkel's widow Marlena and son Robb partnered with Tate to develop the project.
"What we're asking for today is just consideration," Robb Hellwinkel told the Minden board.
"My mom and I care about this community very much. We had three options: We could have torn the building down, sold it off or - the best solution - find someone willing to put money in our building that benefits us and the town of Minden."
