Las Vegas gaming firm chooses Utah for plant

Mikohn Gaming Corp. of Las Vegas has decided to build its new interior sign plant in southern Utah.

The company had considered other sites across the west, including Las Vegas, Arizona and California. But Mikohn settled on the Hurricane, Utah, site after the Utah Division of Business and Economic Development offered the company a $375,000 loan for employee recruiting, hiring and training.

"They were the ones that gave us the best proposition and proposal," said Mikohn spokeswoman Carolan Pepin.

Mikohn plans to close its 55-employee interior sign plant in Rapid City, S.D. Pepin said the Rapid City plant, acquired in 1993 when Mikohn bought Peterson Sign and Art Inc., is simply not in a convenient location.

"It has not been a good location for us, given that most gaming happens in Atlantic City, Mississippi and Nevada," said Pepin.

All Rapid City employees have been offered jobs in other Mikohn plants, she said. The Utah plant will employ 130 to 150 people, about half the amount initially planned. Pepin said this change of plans may reduce the size of the Utah loan.

"Since that time, we've scaled back our plans slightly," said Pepin. "So that will probably have to be negotiated."

"That would probably change the amount," said Deborah Lindner of the Utah Department of Business and Economic Development.

Pepin also said the Utah plant is not a done deal. Mikohn will lease the plant from a developer who is still awaiting financing, she said.

"There are still some obstacles to overcome," said Pepin.

Mikohn makes casino equipment at several Las Vegas plants, including interior and exterior sign manufacturing facilities and a games and electronics manufacturing facility. Its headquarters and administration facilities are also here. In Las Vegas, the company employs 472.

Worldwide Mikohn employs 790. In addition to Rapid City, Mikohn has facilities in Gulfport, Miss., Sydney, Australia, Amsterdam and Lima, Peru.

Pepin said the company considered locating the new plant in Las Vegas. But a tight labor market here, coupled with the Utah loan offer, made the location choice clear, she said.

"Utah was very aggressive," said Pepin. "We know what we have to go through here to find employees. ... We knew what the pool of labor was."

Somer Hollingsworth, president and chief executive of the Nevada Development Authority, said he was unaware Mikohn was considering locating the plant in Las Vegas.

"We were not contacted on that," said Hollingsworth. "We never did hear from Mikohn."

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