Vol. 3, No. 17
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July 1, 2006
Nevada's Online State News Journal
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Union Fight With Station Casinos Boils Over Into Reno Project
Is Union Attempt To Use Initiative Process To Get Its Way Proper?
Hotel union officials are attempting to use the initiative petition process to halt development of casino projects in Reno, claiming among other things that casinos outside the downtown district will dilute the market and harm existing businesses. And some appear to be falling for the ploy. Currently in the so-called downtown casino district, Harrah's, El Dorado, Silver Legacy, Fitzgerald's Casino, Siena Hotel Casino, Sands Casino, and Circus Circus are the existing properties. On the other hand, outside the area one might find such entities as Peppermill Casino, Atlantis Casino, Hilton Hotel Casino, and Tamarack Junction. Not to mention the half dozen casino operations in Sparks, a whole three miles away.
Despite the obvious, the Culinary Workers Local 226 is attempting to stop Station Casinos from building two properties in northern Nevada. Station Casinos has had a lengthy and on-going battle with the Culinary Union since the businesses' inception. There are some 14,000 Station Casino employees that are not members of the union.
According to Station representatives, the company is looking to build a casino adjacent to a large shopping center that was just completed in south Reno at the Mt. Rose Highway junction. The project is estimated to cost about $500 million. A decision on a building permit and other necessaries is expected in the next few weeks in Reno. In the meantime the company already has permits for a second project across South Virginia Street from the Reno Sparks Convention Center. That would put it less than half a mile from the existing Atlantis Casino.
An interesting sidelight to this conflict has to do with City of Reno financing. Because of redevelopment projects, the train trench project and others items, the city currently has a $236 million debt. The city has consistently given special tax breaks to the downtown casino operations, but not to those in the outlying areas. City officials say this is because the downtown casinos are in the downtown redevelopment district, and need the extra tax help to brighten the downtown area. Currently there are more pawn shops and T-shirt shops than there are casinos.
The unions and their backers insist they are only trying to protect the downtown interests and say it's just a coincidence that the properties involved in their fight are Station Casinos projects. Arguments that are circulating with the petition from those opposed to the petition include preferential tax privileges offered to the downtown casinos that in turn cost tax increases to other property owners. New casino projects outside these privileged areas pay their full property tax. Station Casinos representatives have said that the Culinary Union has named them enemy number one.
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