The new owners of Carson Valley Inn have some big plans for the Minden establishment, including $10 million in renovations, but the changes won't come free of pain.
On Wednesday, CVI's more than 400 employees received termination notices in preparation of the transfer of ownership.
"While the physical Carson Valley Inn property will not close, the current Carson Valley Inn operators will permanently cease all operations," CVI General Manager Steve Chappell wrote in the notice.
"Therefore, each employee's employment with the Carson Valley Inn will be terminated effective Jan. 4, 2010, or as soon thereafter as the closing date of the sale transaction.
"Your layoff is not a reflection on you or your work performance for the company. It is rather a result of a business decision to discontinue operations in this industry."
On Thursday, employees received another letter from new owner Mike Pegram of G-Peg, LLC., inviting them to join the new company.
"We invite you to apply for the many positions that we will have available, some of you may even want to apply for something new," Pegram wrote.
"Our goal is to continue the familiar traditions to the guests that many of you and the previous owners have provided over the years, and make the transition as seamless as possible."
The letter provided a schedule of the rehiring process. Job positions and benefits will be posted Nov. 30, with applications available the first of December. Interviews and job offers will occur Dec. 5-31.
Also included with the letter was a fact sheet about the transition: employees' seniority and benefits will not transfer to the new company, but new benefit packages will take effect immediately; available hourly positions will not be advertised in the newspaper or Internet, but rather filled with existing employees.
On Tuesday, Pegram and CVI Sales and Marketing Director Bill Henderson described the restructuring process. Pegram said staffing will depend on revenue levels and will be reduced during renovation.
"After the 60-day construction schedule, we'll be bringing people back to work and hopefully more people to CVI," he said.
Pegram, one of three partners who entered a purchase agreement last spring, said he's committed to reinvesting in CVI, to creating a "mini-stimulus."
"The job I'm faced with now is to reverse the trend of the total economy, the total gaming economy," he said. "My friends have told me, 'Are you crazy? Don't you read the newspapers?' But they don't see what I see. I see a valley that is unique and special, and I hope to mirror that."
The first phase of construction, expected to begin in January, will include renovation of the casino floor: ceiling and wall treatments, new carpet, new comfort chairs, 200 new slot machines and the update of 120 existing machines.
"We're keeping some of the old favorites," Henderson said.
Other improvements will include replacing the old cabaret bar with an island-shaped bar, stage, lounge and more than 20 flat-screen TVs; installing a state-of-the-art sports book with horse racing; remodeling Fiona's restaurant and creating a new menu; replacing the recycled air and ventilation system with an outside-air system that decreases the smell of smoke; building a new cage/guest services center; and adding 2,500 square feet of storage space.
Katie's Country Kitchen will see "very little change," Pegram said.
Phase 2, expected to begin at the end of 2010, will consist of upgrading hotel rooms and the hotel lobby.
"The whole thought behind the investment is to make Carson Valley Inn the premiere small-town casino in Nevada," Pegram said. "If I don't increase revenues, then I made a bad investment. I don't think I made a bad investment when I bought this place."
He acknowledged that restructuring won't be easy, but said the idea is to improve Carson Valley Inn to the point of growth.
"Everything starts with people. CVI has a tradition of employees and friendliness I feel is a strength," Pegram said. "If our employee count is not up after these improvements, then we weren't successful in planning the improvements. I'm putting money where my mouth is."
Henderson said CVI will be expanding its market and aggressively going after out-of-area customers.
"We expect to be a more robust part of the community in terms of the number of people we're bringing to the Valley, and the number of people we employ," he said. "In six months to a year from now, I think we will be in a better position."
