Las Vegas Sun

March 29, 2024

Strike deal could spur Frontier sale

An agreement to end the Frontier hotel-casino strike will make the embattled Strip resort a saleable property, international Culinary Union President Ed Hanley said today.

"Right now, it's not saleable because of the potential monetary risks down the road," Hanley said as negotiations with Frontier General Manager Tom Elardi entered their third day.

The Frontier has been the subject of persistent sale rumors since about 500 workers walked off their jobs on Sept. 21, 1991.

Several months ago, ex-Circus Circus Chairman Bill Bennett considered buying the resort, but the asking price was too high. Instead, Bennett bought the Sahara hotel-casino.

Hanley said the union picked up a rumor within the last couple of weeks that New York billionaire Donald Trump was interested in the Frontier.

But Elardi said no one from Trump's organization has contacted him.

"Maybe (Hanley) knows something I don't know," Elardi said. "But as far as I know, that's not the case."

Another source said there have been reports that Trump may have met recently with other members of the Elardi family. Elardi's mother, Margaret Elardi, owns the Frontier. She could not be reached for comment.

Tom Elardi said he hadn't heard of that rumor either, but he didn't want to rule it out.

He said the hotel gets a half-dozen offers a month, but so far no credible ones have been made.

Trump, who has several casinos in Atlantic City, has long been interested in gaining a foothold on the Strip.

A business rival of Mirage Resorts Chairman Steve Wynn, who also has been mentioned as a possible Frontier buyer, Trump could not be reached for comment today.

Hanley, meanwhile, has given Elardi a 10-page memo drawn up by union lawyers making clear the Frontier can't be sold until it resolves its legal liabilities in the strike, estimated by some at $60 million.

A federal appeals court in San Francisco has ruled the Frontier owes striking workers millions in back pension and other work-related benefits it cut off during the strike.

Elardi disputes the $60 million figure, and is continuing to fight the union in court over the liability issue.

The memo was distributed to other Strip resorts, some of whom have been mentioned as possible Frontier buyers.

The memo shows how Elardi could save millions by settling the strike with the union. The Barbary Coast took advantage of a similar offer a couple of years ago to resolve its labor dispute with the Culinary Union.

Elardi said he understands the union is trying to use the memo as a "bargaining chip," but he was at a loss as to why it was being disseminated publicly.

Hanley, meanwhile, remained upbeat about the progress of the negotiations, though he suggested he might have to stay in Las Vegas through the weekend to reach a deal.

Late Tuesday, the talks between Hanley and Elardi focused on the unresolved collective bargaining issues in the labor dispute.

"There was a little movement made," Hanley said. "I think he's serious. It's just a question of how much money he wants to spend."

Responded Elardi: "The real problem is how do you bridge the gap?

"Just like the tunnel between England and France, you need both sides to start at one end and both sides reach in the middle."

The two men planned to meet again at 1 p.m. today.

Between discussions Tuesday, Hanley stopped to pose for photos with Elardi while a Metro Police technician took Hanley's fingerprints.

The procedure was part of Hanley's registering as a union representative with the State Gaming Control Board.

Hanley was obligated to register with the Control Board before he could play an active role in the talks to end the strike.

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