Friday, April 19, 2002 | 10:56 a.m.
CARSON CITY -- Terry L. Caudill, who is buying the Four Queens Hotel & Casino for $21.1 million, says tourists don't have any trouble with the homeless if the tourists stay within the confines of the Fremont Street Experience in downtown Las Vegas.
But if they wander off into other areas, they may face some problems, Caudill told the Nevada Gaming Commission, which Thursday approved his purchase that is expected to close around July 1.
Commissioner Augie Gurrola of Las Vegas questioned Caudill about the homeless problem in the downtown area. Gurrola said he knew "The mayor (Oscar Goodman) has taken care of that" but asked if there were any more problems.
Caudill said the city has been addressing it. "Everyone wants a clean and safe environment," he said and added the "radius could be expanded," to deal with the homeless problem.
Caudill said "some PR (public relations) needs to be done among the local populous" to draw them back to downtown. And he says the casino owners should get behind the Fremont Street Experience light show attraction. That will be an "integral part" of the marketing campaign of the Four Queens. "I'm going to try to get other casino owners working together."
The Horseshoe Club is locked in a suit with the Fremont Street Experience that claimed the casino is behind in its dues. The Horseshoe says the casino has breached its contract in the operation of the light show.
Caudill, who runs a string of 15 video poker bars in Las Vegas, initially agreed to pay $22 million plus assume an estimated $4 million in debt from the Elsinore Corp. The deal was supposed to close in May but delays by the Securities and Exchange Commission mean Caudill will lose some tax advantages from the deal. Because of that Elsinore agreed to lower the price to $21.1 million.
The Four Queens, according to documents filed with the state, produced $4.6 million in net income last year.
Gurrola also suggested the Fremont Street Experience might advertise the casinos in the light show to get the tourists into the clubs. But Caudill said that could create conflicts among the casinos.
Caudill owns a string of businesses in Clark County including Magoos, Loose Cabooses, Chicago Brewing Co. and Hurricane Harry's.
Best Choice Mortgage is providing "bridge" financing for one or two years and will then provide permanent financing when it sees the operating history.
Caudill intends to offer all of the staff continued employment when he takes over.
"I'm not sure he plans major changes," said David Atwell, a Las Vegas hotel-casino broker who represented Caudill in the Four Queens deal. "I'm sure he'll be tweaking, doing his own thing."
Atwell said "absolutely" more sales are coming downtown, particularly as Neonopolis prepares to open its doors. Currently, downtown's Lady Luck is up for sale by owner Isle of Capri Casinos.
"I'm working on the Lady Luck as we speak, and I think it's going to go fairly soon," Atwell said. "I think the Four Queens sale is a sign of positive things to come downtown."
The commission gave final approval to the following applications:
Blake Sartini and his wife, Delise, who own Golden Gaming Inc., a slot machine route company, to buy 23 PT's Pubs in Clark County from Phil and Tom Boeckle and from Canadian firm Revenue Properties Co. Also approved was a corporate restructuring of the Sartinis' interest that provides an estimated 1,200 slot machines to 102 locations in Southern Nevada.
Majestic Investor Holdings LLC, owned by Don Barden, to register as a publicly traded corporation. Barden purchased Fitzgeralds in downtown Las Vegas last year from bankruptcy court for $149 million.
Las Vegas auto dealer James Marsh to take over the Tonopah Station in Tonopah that has been closed. He will have 77 slot machines, two 21 games and one craps table.
John M. Sullivan to be vice president, secretary and general counsel at Las Vegas Dissemination Co. and also to hold a distributor's license to promote a new jackpot payout game for bingo.
Robert A. Vannucci as president and chief operating officer at the Riviera Hotel & Casino on the Las Vegas Strip.
A waiver for Fidelity Management and Research Co., which manages mutual funds that buy stock in Nevada gaming casinos. The regulations prohibit these institutional investment companies from owning more than 15 percent of the stock of a casino without going through licensing. Sometimes a casino company will buy back some of its stock and Fidelity will end up holding more than 15 percent of the outstanding shares. Fidelity will be able to hold up to 19 percent but must reduce its shares to 15 percent within one year.
Allan Fiegehen and Donald Lehr, both of Carson City, to convert the first floor of the garage at the Ormsby House hotel-casino for a club with 125 slot machines and a bar. Fiegehen and Lehr started a $20 million remodeling at the Ormsby House and now say it will cost $4 million to $5 million more than expected. The casino won't open at least until July 2003. In the meantime the two want to open a gaming operation across the street from the hotel-casino.
