Reno Gazette-Journal from Reno, Nevada • Page 34

BUSINESS NEWS Z2E MONDAY, JUNE 12, 2006 RENO Shareholders sue Sands Regent over Herbst deal Towers, the change of downtown Reno is happening. Officialsfor Belvedere Towers, on the site of the old Sundowner hotel-casino, said that 70 of the future 177 condominium units at Belvedere are under contract to be sold, meaning buyers have already locked in the price and placed a deposit on their units. And the Residences at Riv-erwalk Towers, where construction is complete on all but some of the common areas and retail spaces on the bottom floor, has 16 of its 125 units left for sale, said Carol Allen, broker for the condos in the former Comstock hotel-casino. The final two one-bedrooms are listed at $237,500 and $239,900. Also, the sponsor of a ballot measure that could turn every resident of Boulder City into a millionaire if passed said he submitted petitions with about 4,000 total signatures to City Hall on Thursday.

The petitions call for two ballot initiatives. One would protect almost 168 square miles in nearby Eldorado Valley from development, saving the land for a desert tortoise preserve, public recreation uses and possibly a solar power station. The other measure would sell all or part of the same acreage, with at least 90 percent of the proceeds going directly to Boulder City residents. Friday: Reno and Sparks casinos reversed rolls in April, with The Biggest Little City increasing revenue and the Rail City decreasing, the Gaming Control Board reported. Reno casino revenue was $65.93 million, up 8.2 percent from April 2005, the board ret-ported.

Sparks casinos reported 1 4. 1 4 million in revenue, down less than one percent. April was a switch from March, when Reno casino revenue was down and Sparks was up. The March drop in Reno dragged the county's total revenue down for the first time in 10 months. The April increase returned the county's casinos to revenue growth.

Reno Gazette-Journal reporters Bill O'Driscoll and Zack Hall as well as The Associated Press contributed to this report. BY RYAN RANDAZZO rrandazzorgj Shareholders unhappy with The Sands Regent's deal to sell to Herbst Gaming of Las Vegas for $148 million are suing and asking for a better price, according to court documents. The deal announced last month would give shareholders $15 fkrtr( per share, but the tj' complaint filed in 3 Washoe District Court calls the price "grossly inadequate and unfair." "The realizable value from growth and a recovery of the company's historic performance, as well as the Reno tourism projections, is far in excess of $15 per share," the class-action complaint states. When the deal was announced, Sands officials called it a "great opportunity for shareholders," and President and Chief Executive Ferenc Szony said Tuesday he still feels the same, although he could not comment on the suit. Shareholders still must approve the deal, and according to tradition should receive a proxy statement within several weeks that explains the terms.

In other business news last week: Monday: Entrepreneurs and technology will be key to Northern Nevada's future as the region diversifies from its gam-ing-tourism base, an ongoing study shows. The region's technology sector has grown faster than nearly all others since 2002 with higher average wages, according to findings by Texas-based Ange-louEconomics in its third of five reports. The "Target2010" project, "sponsored by the Economic Development Authority of Western Nevada, will be completed this summer as the Reno agency charts a long-term plan for targeting industries for the region. Tuesday: Officials at Model Dairy are preparing for next week's celebration of 100 years as a milk and dairy products purveyor in Northern Nevada. The company began in 1906 with a handful of cows on a ANDY BARRONRENO GAZETTE-JOURNAL The former Sundower hotel-casino is being transformed into the Belvedere Towers, a 1 77-unit condominium tower, though you can barely tell form the outside.

have been made. But Control Board member Bobby Siller said in opposing the plan that it goes far beyond the Hilton matter. The investment follows Colony's purchase of the Hilton in 2004 for about $280 million. Also, a $20 million makeover will turn the Best Western Pi-fion Plaza Resort in Carson City into a Gold Dust West when Golden, Colo. -based Jacobs Entertainment Inc.

takes over the property, officials said. Jacobs $14.5 million purchase of the property won initial regulatory approval from the Gaming Control Board, and officials said they would rebrand the property to match the Gold Dust West in Reno. Thursday: From the nearly completed Residences at Riv-erwalk Towers just north of the Truckee River, up West Street to the northern end of downtown with the soon-to-be Belvedere required to file its next deferred energy case, though any rate increase would likely not take affect until 2007, Sierra Pacific spokeswoman Faye Anderson said. Also, gambling regulators gave initial approval for the $151 million sale of the Reno Hilton to Grand Sierra Resort which plans to spend another $140 million overhauling the property. Among the plans are a Dolce restaurant backed by celebrity investors, including Ashton Kutcher of "That 70s Show," a nightclub featuring raunchy Las Vegas comedian Jeff Beacher, and the largest indoor water park in the U.S.

After buying the largest Washoe County hotel-casino from Harrah's Entertainment Grand Sierra Resort also is converting the top 1 1 floors of the 25-story building to 825 ho WynnShow criticized for being similar to Dragone's earlier work AheadCity Council to consider Cabela's $69 million tax break hi -t a i northeast Reno ranch and has since grown to produce 1 million gallons of milk a month for a customer base that spans a radius of hundreds of miles. Wednesday: Sierra Pacific customers likely will not face another electricity rate hike for the remainder of this year, company officials said. The Public Utilities Commission approved a settlement on the remaining portion of Sierra Pacific Power deferred energy case. The utility company, which provides electricity to more than 300,000 customers throughout Northern Nevada, had originally sought an average $3-per-customer hike per month as part of the remaining portion of the Reno-based utility company's deferred energy case filed last December. But the approved settlement holds the current rate to at least October, when Sierra Pacific is 'Wynn is not one to sit around.

I'm interested to see what they do with the Jennifer Dunne Cirque du Soleil spokeswoman theater in the round has been profitable, Jensen said. The show and theater cost 1 10 million to start up, she said. But stiff competition prompted Wynn to plan to "invest a significant amount of money" to make the show "bigger," she said. "He's talking about some visual effects with lasers and lighting and so forth," she said. "He wants to add in more choreography to bring in more artists.

However, the baseline show stays as is." Just down the Strip from Wynn- Las Vegas, the Mirage began preview performances of the Beatles-Cirque du Soleil production, "Love," last week in a revamped theater in the round. Preview sales were strong, Cirque spokeswoman Jennifer Dunne said. Meanwhile, the Venetian sellers to adjust to the new buyers' market, which means, in most cases, lower prices. The sun is shining and listings and showings are picking up. It would be imprudent to ignore the economic effects of world events, but for those buying or selling a home in Reno, people should consider everything this market has to offer.

tel-condominiums. The company has about 280 signed contracts for units, and is working another 80, GSR Chief Executive Thomas J. Schrade said. And, on a 2-1 vote, the state Gaming Control Board voted for a Las Vegas Hilton licensing change representing a major policy shift that could encourage big outside investors to pump more money into Nevada resort projects. Under the plan, subject to final approval June 22 by the board's parent Nevada Gaming Commission, three executives of New York-based Whitehall Fund entities would wind up on the board of Colony Resorts LVH Acquisitions LLC, which now controls the Hilton.

Without Colony board member status, a $60 million investment in Colony by the Whitehall entities, investment arms of Goldman Sachs, likely wouldn't LAURA RAUCH; ASSOCIATED PRESS FILE the Paris Las Vegas hotel-casino late this summer and "Monty Python's Spamalot" is set to open at the Wynn next year. "Wynn is not one to sit around," Dunne said. "I'm interested to see what they do with the show." boost market The Reno Gazette-Journal Business section welcomes your views on our Monday Industry Vista column. Please e-mail your letters to businesrgj.com, fax tfifm to 788-6458, snail mail them to Business section, Reno Gazette-journal, Box 22000, Reno, 89520-2000 or drop them off between 8 a.m. and 5 p.m.

weekdays at our office at 955 Kuenzli St. in Reno. i' fit im ,1 From IE viser for Dragone's company, Productions du Dragon S.A., said Wynn asked Dragone personally to make the changes but Dragone was too busy with other projects, such as the Montreal-based show "Le Graal," to take them on. "The degree of changes in terms of the technical level, et cetera, it's not something that we can just casually do," Jensen said. "Franco Dragone would have to be based in Vegas for a significant period of time and we just can't commit to that." In Dragone's place, Wynn has hired the artistic director of surrealist dance troupe company MO-MIX, Moses Pendleton, to complete the expansion of the show by some time in 2007, Jensen said.

Neither Wynn nor Pendleton could immediately be reached for comment. Wynn and Dragone, who is Cirque du Soleil's former creative director, were criticized when "Le Reve," an aquatic dance show, debuted in May 2005 because it was markedly similar to other shows on the Strip, such as Production was temporarily trimmed from 10 to five shows a week while the show and its marketing were fine-tuned. "Le Reve," which is performed in a specially built Performers in "Le Reve" rehearse last year in Las Vegas. Casino mogul Steve Wynn's flagship resort, Wynn Las Vegas, will pay $1 5.9 million to buy the rights to its headline show, which was created by Franco Dragone, and to add lights, lasers and perhaps more performers. Internal Revenue Service, is scheduled to testify before the Senate Finance Committee on corporate tax issues.

In Middletown, Ohio, negotiations will resume between AK Steel Corp. and the union it locked out as of March. Earnings: Best Buy Co. Inc. (36 cents); Goldman Sachs Wednesday: The Reno City Council will consider a $69 million tax break for outdoor retailer Cabela's.

In Washington, the Labor Department is scheduled to report on the consumer price index for May, and the Federal Reserve will release its survey of regional economic conditions. Earnings: Amerco (96-cent loss). Thursday: In Washington, the Labor Department is scheduled to report on weekly jobless claims, and the Federal Reserve is scheduled to report on industrial production for May. And Freddie Mac, the mortgage company, will report on mortgage rates. Also in Washington, the Senate Banking, Housing, and Urban Affairs Committee will hold a hearing on the mortgage company Fannie Mae.

In La Paz, Bolivia, state energy company, YPFB, will take back control of all service stations it leased out, as part of leftist President Evo Morales na- tionalization of country's energy resources and businesses. Earnings: Adobe Systems Inc? (30cents); BearStearns KB Home Friday: The May unemployment report is due out from the Nevada Department of Employment, Training and Rehabilitation. In Washington, the Commerce Department is scheduled to report on current account for the first quarter. Earnings: Winnebago (39 cents). The Associated Press conrrib' uted to this report.

From IE oil prices still stand above $70 a barrel and are considered a potential inflation threat which raises the possibility that interest rates could keep climbing and put a serious dent in economic growth. Fed Chairman Ben Bernanke all but guaranteed another rate hike at the June 28-29 policy meeting when he said last Monday that core inflation without energy or food prices is nearing the limits of the central bank's tolerance. Bemanke appeared willing to stunt economic growth and raise rates as much as necessary in order stem inflation. For this reason, this week's data on wholesale and consumer prices will be particularly important for Wall Street's outlook on the economy. Coupled with the potential for an economic crash, the uncertainty has investors' backs against the wall.

In other business news this week: Today: In Washington, D.C., the Treasury is scheduled to report on the federal budget for May and the weekly Treasury bill auction will be held. Also in Washington, Federal Reserve Chairman Ben Bemanke is scheduled to speak at an American Bankers Association event. In Vienna, Austria, the International Atomic Energy Agency's 35-nation board will begin its weeklong, regular meeting. Major companies tentatively scheduled to report quarterly earnings next week followed by Thomson Financial profit estimates include: Lehman Brothers Holdings Inc. Tuesday: In Washington, the Commerce Department is scheduled to report on retail sales for May and business inventories for April.

In other economic news, the Labor Department is scheduled to report on the producer price index for May. Also in Washington, Mark Everson, commissioner of the I VistaFavorable conditions locally help next door to Wynn will open "Phantom: The Las Vegas Spectacular," a 90-minute version of the Andrew Lloyd Webber musical later this month in a 1 theater. "The Producers," the smash Mel Brooks musical, will open at Low unemployment, continued flow of people from California, a supply of very nice inventory, a significantly favorable tax structure for individuals and corporations and a booming commercial market are all helping boost the real estate market. Truly, the sun is shining on our community. From IE hbme buyers or sellers? I have heard many anecdotes from all kinds of sources during re past few weeks.

The two most common sentiments I have heard during the last quarter are: "Wait until the feather gets better," and "Wait for the sellers to blink." In other words, wait for.