Reno Gazette-Journal du lieu suivant : Reno, Nevada • Page 30

Welcome to the next level. Reno Tahoe Tech Center PAID ADVERTISEMENT SECTION THURSDAY, SEPTEMBER 20, 2001 RENO MA (fcuDSI, iHESt Dtt USERS Dow TODAY Stocks 2-3D Markets continue Stocks continued to fall Wednesday last week's terrorist attacks. to slide as a result of economic fallout from Economic weakness was spreading before terrorist attacks, Fed reports Industrials fell 423 points earlier. Down 746.81, or 8.8, this week. By Lisa Singhania ASSOCIATED PRESS NEWYORX Economic fallout from last week's terrorist attacks sent stocks spiraling for the second time in three days Wednesday.

Only a late burst of buying saved the Dow Jones industrials from their worst three-day point loss ever. The Dow, down 423 points in midafternoon, recovered to a loss of 144 following reports that the Pentagon had ordered fighters and bombers to begin moving to the Persian Gulf area, the first concrete sign of preparations to Radnor Consulting. "The attacks were devastating, and the timing could not have been worse because they came when the economy was already slipping." The Fed cut interest rates Monday for an eighth time this year, and many economists predicted the central bank would keep cutting rates until the cheaper money does the trick of restoring confidence for a rebound. The survey of economic conditions, known as the beige book, was prepared for the Fed's Oct. 2 meeting, when analysts expect a ninth rate cut.

See ECONOMY on 3D Federal Reserve: Regional economic report released. rgj.comnewsbusiness imports for a fourth consecutive month and spreading weakness overseas caused the biggest drop on record in U.S. exports. Taken together, analysts said the reports depicted an economy flirting with recession before terrorists flew hijacked airliners into the World Trade Center and the Pentagon on Sept. 11.

"The economy has been very vulnerable and fragile all year," said Lawrence Chi-merine, chief economist at Nasdaq composite Intraday trading, live-minute intervals 1,775 devious close 1,033.00 Mon. Tues. Wed. AP So far this week, the Dow has dropped 746.81, or 8.8 percent. Despite the comeback, the thousandsof jobcutsat Boeing, American Airlines and others following the attacks heightened fears about the already fragile economy.

See STOCKS on 3D 1.400 Terrorists hurt tourist-driven state economy Additional data needed: State needs to know impact on gaming revenues. By Martin Crutsinger ASSOCIATED PRESS WASHINGTON Economic activity was weakening around the country in August and early September even before the terrorist attacks, according to a new Federal Reserve survey. The central bank's check of economic conditions in its 12 regions for that period showed faltering manufacturing activity, slowing retail sales and rising layoffs. Meanwhile, the U.S. Commerce Department reported Wednesday that the trade deficit narrowed slightly in July to $28.83 billion as the weak U.S.

economy reduced I I ft A 1 Peppermill closing another California restaurant Friday Market watch Sept. 19, 2001 Dow Jonas Industrials 8,759.13 Standard Poor's B09 1,016.10 4 1,527.80 Rnssall 2000 403.20 NYSE diary Advances: 760 New high 243 N.w low. Unchanged: 153 537 Comp. volume: 2,495,501,960 Nasdaq diary Advances: 1,217 New highs 2.6" Newtws Unchanged: 644 641 Volume: 2,409,740,400 AP Calif, to dim power rules By Jennifer Coleman ASSOCIATED PRESS When California's Public Utilities Commission votes today, it could strip away most of the state's deregulated energy market created in 1996. Replacing it most likely will be a system dominated by the governor, a new public power authority and three troubled utility companies.

Other states once contemplating deregulation are backing away from the experiment that was supposed to revolutionize the industry. The vote could wipe out the last vestige of deregulation direct access, the ability of consumers to choose their provider. Without direct access, customers will lose their ability to bypass their utility and buy power from retailers, including Green Mountain Energy or Enron Corp. About 200,000 customers had switched utilities by September. Touted at its creation as a way to stimulate competition and lower electric rates, deregulation foundered after a year of price spikes, a utility bankruptcy and energy shortages that led to rolling blackouts.

Today, California's government is deeper into the power business than ever before and electricity deregulation is dead, said Public Utilities Commissioner Carl Wood. "There's no way in the world deregulation would ever get an affirmative vote from the people or its representatives," ne said. If it acts as expected, the PUC vote will continue a trend that started in January, when the California Department of Water Resources started buying a third of the power needed by customers of the state's three largest private utilities Southern California Edison, Pacific Gas and Electric and San Diego Gas Electric Co. All three companies faced bankruptcy because the law wouldn't allow them to pass on higher wholesale energy costs. Nevada lawmakers delayed plans to deregulate electricity, citing California's troubles.

Want more? nSdU (JUINUIBie articles at 1.. rgj.comnewsbusiness Contact Us Interim business editor: Edward H.Shur, (775) 788-6428 E-mail: businessrgj.com Circulation: (775) 786-8744 Classified: (775)348-7355 Dow Jones industrial average Intraday trading, five-minute intervals 10000 Previous -cose 9,605.51 9,000 3,000. Mon. Tues. Wed.

Source: MSN MoneyCentral retaliate for last week's terrorist attacks. "That's what the market needed to see; they wanted to get rid of uncertainty and this helped," said Charles White, portfolio manager at Avatar Associates. The Dow declined 144.27 points, or 1.6 percent, to close at 8,759.13. sino and Rainbow Casino in West Wendover and the Rainbow Club in Henderson, Carasali said some restaurant locations are not as attractive as when they opened years ago and some leases aren't being renewed. While two leases were canceled, two were renewed, he said, opting not to name those sites.

Peppermill leases all its restaurant sites. Peppermill restaurants began in 1971 in Reno, the precursor to the hotel-casino, followed by Las Vegas in 1972 and California in 1973 all on long-term leases that have been coming up for renewal, Carasali said. As they come up for renewal, Peppermill re-evaluates each location. "The dynamics of your location cnange over 20 or 30years," he said. "It has not (made) good business sense to sign up for another long-term lease (in some areas)," he said, adding renewals typically are for 25 years.

"It's a matter of using your financial resources (wisely)." Peppermill's remaining California restaurants are in Citrus Heights, Concord, Cupertino, Daly City and after defaulting on bond payments. A restructuring accord with bondholders calls for all four of the company's hotel-casinos to be sold to help offset debts. Majestic Investor LLC, an affiliate of Majestic Star Casino in Gary, agreed in December to purchase the Gaming's properties in Las Vegas, Tunica, and Black Hawk, for 149 million cash, butnot the 351-room Reno location. Majestic Star remains on track to buy the three pending final bankruptcy and gaming regulator approvals. Truitt said the leading candidate for the Reno site is expected to continue the I '1 A'ffJ I By Brendan Riley ASSOCIATED PRESS State officials are scrambling to determine the effect of last week's devastating terrorist attacks in New York and Washington on Nevada's budget and tourism-dependent economy.

While delays in spending or even cuts in the $3.7 billion, two-year state budget are possible, Gov. Kenny Guinn's fiscal experts said a lot more information must be collected before those tions are considered. "The first thing the governor has asked us to do is to get a handle on what will happen with our gaming revenues," Deputy Budget Director Don Hataway said Wednesday. Though Hataway said he and Budget Director Perry Comeaux have talked about the possible need to postpone some program funding scheduled to start Oct. 1, "we're strictly in a data-gathering mode now." The information won't come overnight.

While an immediate slump was noted in tourist traffic because of a brief ban on air travel last week, casino win numbers for September don't have to be turned in to the state Gaming Control Board until late October. The same delay is expected for September's sales tax figures. Together, the two revenue sources generate some three-quarters of the money for the state's budget. In the meantime, lawmakers are expected to pump more funding into advertising aimed at drawing tourists into the state. The funding proposal will be considered Tuesday by the Legislature's Interim Finance Committee.

Hataway said it's premature to talk about the possible need for a special legisla- tit. -tout By John Stearns RENO GAZETTE-JOURNAL Reno-based Pepperfnill Inc. will close another of its California restaurants when it shutters its Fresno location Friday after 23 years. In June, the Peppermill closed a Sacramento location across from Arden Fair Mall. Six Peppermill restaurants remain: one in Las Vegas and five in California.

The restaurants are run separately from the Reno-based Peppermill Casinos which operates hotel-casinos, including the flagship property. Some ownership is shared, however, between the restaurant and casino groups. "We're not getting out of the business, we're just making business decisions as they arise," Nat Carasali, co-owner of the Peppermill said Wednesday. His partner is Bill Paga-netti. The two Reno resi-.

dents also are partners with Albert Seeno Jr. and Tom Seeno of California in Peppermill Casinos, whose other casinos include Western Village Inn Casino in Sparks, the Peppermill Ca tive session should the Nevada economy go into a long-term slump. He noted that in 1 993 andl 99 8, when the state had revenue downturns, the executive branch was able to curb spending and avoid the need for a special session. But another period of reduced spending to keep the budget balanced would put more pressure on Guinn and the 2003 Legislature to find more tax revenue to balance what some critics have termed a "backwater budget." Even without a recession, Guinn's economic advisers have predicted a $1 billion budget shortage in about eight years if government spending continues on its current pathandno new revenues are generated. Some bright spots have cropped up, such as Nevada's tendency to feel the effects of national recessions later than other states.

Gaming Control Board analyst Frank Streshley said that during the Gulf War the state's casino win dropped briefly when the U.S. invasion first started but after that showed growth for several consecutive months. An analysis late last week by Bear Stearns suggests Nevada's gambling industry should be "better positioned" to handle a slump than businesses that focus mainly on hotel rooms and travel. But the analvsis added that much depends on gasoline prices and renewed consumer confidence in commercial air flights. Northern Nevada casinos rely heavily on drive-in tourists, mainly from Northern California, while resorts in southern Nevada cater to fly-in and drive-in gamblers.

5 Photos by Darrell WongThe Fresno Bee IN FRESNO: Sabrina and Edward Soo (above), who have owned the Shanghai Chinese restaurant for the last 20 years, plan to open a French restaurant at the site of the Peppermill (top) on Blackstone Avenue, north of Shaw Avenue, by the Christmas season. Santa Clara. restaurant that will open in Fresno restaurant opera- time for the Christmas sea-tors plan to convert the Pep- son, according to a report in permill site into a French today's Fresno Bee. Leading buyer emerges for bankrupt Fitzgeralds Filed for Chap. 11 in December: 7 letters of intent filed for Reno casino.

to yet). If this candidate doesn't work out we have multiple good candidates." If Zive does consider a motion to sell the property Nov. 19 to the leading candidate, other potential buyers can place higher bids. But the leading candidate could increase its bid if it wants. Truitt said he has been pleased by the amount of interest in Fitzgeralds, which generates positive cash flow and in which investors clearly see opportunities.

Asked how he perceives Reno's market, Truitt said: "I don't see Indian gaming as necessarily being a good thing for the Reno market; however, I don't see it as being the beginning of the end for the Reno market. See FITZGERALDS on 8D property as a hotel-casino, keep the Fitzgeralds name and retain virtually all of its roughly 900 employees. He would not name the possible Reno buyer, nor say where it operates. But it does operate in gaming and is considered capable of being licensed in Nevada, which is one of the considerations in evaluating offers, he said. He saicfhe has seven non-binding letters of intent for the property.

"We identified one as being the highest and best offer and we are in the process of negotiating with that party," Truitt said after the hearing, in which he participated telephonically. "I'm confident the deal for the Reno property will be consummated (although no sale agreement has been entered in By John Stearns RENO GAZETTE-JOURNAL A leading candidate has emerged as a possible buyer of Fitzgeralds CasinoHotel and a bankruptcy udge could approve a sale as early as Nov. 19, court hearing participants said Wednesday. "There has been a lot of interest in the Reno property," Jeffrey Truitt, a partner with KPMG in Los Angeles, said after the hearing before U.S. Bankruptcy Court Judge Gregg Zive.

KPMG is the financial and restructuring adviser to the Las Vegas-based Fitzgeralds Gaming which filed for Chapter 1 1 in December Scott SadyReno Gazette-Journal file DOWNTOWN RENO: Casino could be sold as early as Nov. 1 9.