Reno Gazette-Journal from Reno, Nevada • Page 30

Business News RENO MONDAY, OCTOBER 6, 2003 Mounting losses force Sundowner to close Oook back Economic indicators Among tr indicators that reflect the state ot Nevada's economic health, tew are more crucial than unemployment and now much Nevadans and tourists spend inside and out ot the state's casinos. The state's jobless rates, especially in the Reno-Sparks area, typically have been lower than the nation and state, reflecting Nevada's naborHeading population growth. Even with new business taxes approved by the Legislature this year, Nevada still relies heavily on gaming and sales taxes to generate revenue lor the fastest-growing state In the nation, July unemployment Nevada continued to outperform the nation in job growth in July, with Washoe County, usual, wel ahead otal other regions statewide. The greater Reno-Sparks area 's 42 percent unemployment rate was more than a tut point below the statewide level and rates in a) other regions. Washoe County stM remains above pre-9-11 levels th reduced the jobless rale to 2.B percent in July 2000 at the height ot the late '90s economic boom.

Even a year later, two months before the terrorist attacks, Washoe's unemployment rate sat below the 4 percent mark. man Adam Mayberry announced he is taking a job with Rep. Jon Porter, R-Nev. Mayberry has informed the community on everything from flight delays to small crashes for almost five years. The airport will conduct a nationwide search to find a replacement for Mayberry.

Also, Sierra Pacific Power 125,000 natural gas customers in the Reno-Sparks area will see an average 3 percent cut in rates starting Nov. 1. The Nevada Public Utilities Commission approved the decrease that will mean 1 .53 less per month for the typical residential customer using 52 therms of natural gas. Wednesday brought good news on Nevada's economic front: Taxable sales in July surged 9.3 percent from 2002, the 13th straight month of positive growth. The monthly Department of Taxation report snowed Washoe County's taxable sales jumped 7.4 percent and Douglas County sales rose 9.9 percent.

Carson City, which has seen major retailers relocate south in Douglas County, saw a 2.1 percent rise. Thursday: Representatives from the RSCVA and KPSI3, a Reno public relations and marketing company, went to Vail, for a four-day conference put on by the national Outdoor Industry Association. The mission: Win back the annual summer and winter Outdoor Retailer trade shows, which were in Reno until the mid-'90s until moving to Salt By Thomas J. Walsh RENO GAZETTE-JOURNAL The co-owner of the Sundowner Hotel Casino in downtown Reno told the property's 375 employees Thursday that the doors will close Dec. 1, the result of several years of losing money and a particularly rough gaming industry.

In the letter enclosed with the staff's paychecks, George Kar-adanis told workers the Sundowner "can no longer sustain the economic losses we ha ve incurred and continue to incur." The announcement was not much of a surprise to the gaming community or the Sundowner's employees. Karada-nis said in early 2001 that he'd like to sell because the casino had not made money in four years. Organizers of the 1 0th annual Street Vibrations biker festival reported last week that late September's event could have been the biggest ever, although exact numbers or economic impact figures were not available. Casino executives, too, said the event packed visitors in, and weekend events in Virginia City brought an estimated 15,000 people, officials there said. In other business new last week: Monday: The House Subcommittee on Energy and Mineral Resources took testimony from gold mining experts in Northern Nevada for the congressional record.

Rep. Jim Gibbons, suggested that people who sue man. After some disagreement among members, some of whom wanted to give him a larger raise and others who felt he deserved no increase, a 2.5 percent salary increase and no bonus was approved by a slim 6-5 margin. Beckclman refused to accept the raise, saying no other staffers are receiving cost-of-living increases. The CEO earned more than $200,000 last year in salary and a bonus.

To the south, a group of Carson Valley-area business leaders was told it must unite with all of Northern Nevada if the region is to diversify its economy and fight the onslaught of California tribal gaming. "There's a regional reality here," Grant Sims, manager of economic development at Sierra Pacific Power told the 10th annual Critical Issues Conference in Minden. "Selling Douglas County by itself limits success. As Reno grows, Douglas County will be impacted, and as Douglas County grows, Reno will oe impacted." Reno gaming expert Bill Ead-ington told the 150 attendees they can't foresake the gaming industry that's still the backbone of Nevada's economy. "We can ill afford to have it go off the cliff.

It will drag us with it," said Eadington, an economist and director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno. Wednesday: Airport Authority of Washoe County spokes 9- WlllUM Statewide I CanonDouglas lyonStorey 5--4- 3-- 2 1 1 2000 2001 2002 2003 AheadEldorado landlord seeks transfer July casino revenues Washoe County showed the strain of the first month of revenue in the era of competition from Thunder Valley Casino in California With an almost 6 percent drop, the Keno-Sparks-North Lake Tahoe region struggled in a month at the height of the summer season. The story was the same atStateline, where a more than percent drop in revenue occurred compared with July 2002. Overall, the state showed a modest gain almost entirely on the back of the greater Las Vegas Valley, including a 7 percent rise on the Las Vegas Strip, which generates nearly one-half of the entire statewide "win' Washoe Statewide S90" CarsonDouglas Lake City, where they have been staged ever since. For political reasons, the shows could be up for grabs after 2004, and the RSCVA has formed a task force of at least 15 individuals from the business and civic communities to help sell Reno-Tahoe as the best place for the outdoor industry.

Also, The largest bar operator in the state announced it is moving into Northern Nevada with the purchase of four Sparky's sports bars, The Old Little Waldorf Saloon and Dog House Pub Grub. Golden Gaming Inc. of Las Vegas officials said they will keep the same theme at the local bars and start a new chain of alpine lodge-themed bars called Sierra Gold. Golden operates the popular PT's Pubs throughout the Las Vegas area. The first Sierra Gold will be open in the South Meadows area, and the company will open a new Sparky's in Carson City, officials said.

Friday: Nevada will receive $613,136 to ensure that workers enrolled in training programs under the Trade Adjustment Assistance and North American Free Trade Agreement will receive the full array of services available and complete their programs. The money for Nevada is part of more than $5.6 million that U.S. Secretary of Labor Elaine L. Chao announced will be distributed to 13 states. Reporters Bill O'Driscoll and Ryan Randazzo contributed to this report.

of interest Candle TowellReno Gazette-Journal file Wednesday. and the nation's retailers release their sales figures for September. Earnings due include Abbott Labs, 53 cents; and Marriott, 3 8 cents. Friday: The Commerce Department is scheduled to report international trade for August and the Labor Department is set to announce the September Producer Price Index. Also, General Electric reports on earnings, with an expectation of 40 cents per share.

Reporter Thomas J. Walsh and the Associated Press contributed to this report. information from their internal accounting. The first paragraph of the top story should be promoting the event how many bikes are there to see, where to see them, etc. Instead, the first paragraph deals with ringing cash registers.

This dollar attitude will have to change dramatically before RenoTahoe can picK itself up and become a true destination of adventure. Given a golden opportunity to promote the area on national TV during Hot August Nights, the mayor of Reno only could say how many millions of dollars the event would put into the economy. How embarrassing. Not one word about the beauty or nostalgia that the event creates. Just This mentality has to change.

Promote the area and special events, the dollars will take care of themselves. Perceptions are made and a concerted effort is needed to ensure that only positive perceptions are created. Mac Coakwell, Reno I si to delay mining projects post bonds that would go to the companies to compensate for their losses if the plaintiffs lose the suit. The president of the Nevada Mining Association suggested lawmakers make it easier for the government to transfer public lands to mining companies to expedite the issuance of permits. "Economic stability and hard-rock mining would seem to be incompatible," testified Nevada Division of Minerals Administrator Alan Coyner.

"The continuation of economic stability, and therefore sus-tainability, relies heavily on the discovery and development of new mines." Tuesday: The Reno-Sparks Convention 8c Visitors Bureau board once again put off discussion of the possible sale of the Wildcreek and Northgate golf courses. The day before, Chairman Phil Salerno, a Sparks councilman, said the city would not further pursue the purchase of Wildcreek. He made the comments following the RSCVA's Finance and Personnel Committee meeting, which decided that open bidding would be available to public and private entities. The board did discuss at length and behind closed doors the performance review of PresidentCEO Jeff Beckel- RAMPING UP: International Game people get to compete for funding from the "money" people during the event, which lasts through Friday. The Nevada Commission on Tourism, led by Lt.

Gov. Lorraine Hunt, takes a delegation of tourism, hotel and private industry officials to China starting Thursday and ending Oct. 19. The goal is to develop business ties with officials in Beijing, Shanghai, along with Hong Kong and Macau. Fife Northern Nevada officials will accompany Hunt: RSCVA Travel Industry Sales can be.

The conclusion seems inevitable to institute substantially stronger screening processes as people move higher in the corporate ranks. Psychological profiling, ethics tests and monitoring e-mail and telephone calls are among the tools that come to mind. Is this an unsavory and unpleasant business? Most certainly and not without its economic cost. And sadly avoidable if we were individually more outspoken about what's acceptable and what's not. But take heart in that the problem eventually solves itself, not so much on a moral basis but courtesy of the "silent hand" of economics.

Corporations will need and value ethical behavior. Business schools already are instituting business ethics courses in response. And eventually people will understand that ethical behavior is part of "getting ahead." It seems like a hard way to learn a basic lesson, don't you 800 700- 600- 500- From 1E The items include applications for transfers of interest with Park Cattle Co. of Minden and Reno-based Park-Blach Holdings. Associates, landlord to the Eldorado Hotel Casino, also seeks transfers of interest, related to the William and Lena Carano Family Trust.

The board also will hear from two officials of the Carson City Gaming listed as doing business as the Comstock Casi-no on Goni Road. An application for a nonrestricted gaming license is on the table, with other matters related to the business. Reno's International Game Technology has business before the board as well, seeking permission for its planned acquisition of Acres Gaming Inc. And two Reno pubs the Brewhouse Pub Grill on South McCarran Boulevard and the Flowing Tide Pub Grill on South Meadows Parkway will seek restricted gaming licenses. Also Wednesday, the first colored American money, $20 bills with splashes of peach, blue and yellow, can be picked up at Federal Reserve.

Earnings due include Costco Wholesale, 47 cents; Genentech 25 cents; Winn-Dixie Stores, break even; and Yahoo 9 cents. Thursday. The annual Silver Gold Venture Capital Conference will take place at Incline Village on Lake Tahoe's North Shore. The event brings eager entrepreneurs together with investors from Northern California and Nevada. The "idea" I I I i 80- Technology has business coming before the State Gaming Control Board on Director Ralph Witsell, RenoTahoe International Airport Executive Director Krys Bart and three officials from Carson City manufacturer Click Bond Inc.

Also: The Institute of Real Estate Management will present an update to apartment landlords on how the new laws passed in the 2003 legislative session will affect them. The event, at the Convention Center, costs $20 for members and $25 for others. And the Annual Governor's Industry Awards dinner is set for 60 I 20 I 0 2000 2001 2002 2003 July taxable sales Taxable sales took off in July, rising 9.3 percent compared with July 2002. That proved a good start to the fiscal 2004 state budget year and brought Nevada dose to the $3 billion mark in taxable sales for one month. Driving July's Increases were hefty ftftes in the two biggest generators ot taxable sales: auto and gasoline, up 14.5 percent statewide, and restaurant and bars, up 9.4 percent State officials said the numbers reflect Nevada 's continued recovery from the adverse impacts of last spring's war in Iraq and the nation's overall recessionary atmosphere ot the past few years.

"3 Washoe CartonDouglas LyonStorey Statewide $4 VistaHiring trustworthy people is a business must 5:30 p.m. at John Ascuaga's Nugget in Sparks. State and local economic development agencies will recognize approximately 25 new and existing Northern Nevada companies for moving their businesses to the region and acknowledge existing businesses with substantial growth. Cost: $100 per person or $1,000 for a table of 10. Nationally, the Labor Department is scheduled to report on weekly jobless claims; Freddie Mac, the mortgage company, announces mortgage rates; Do you hear how much fun the visitor had? How many excellent meals they ate? How many top-notch shows they saw? How wonderful the snow conditions were and how great the skiing was? How beautiful the mountain vistas are? How clear the sky is, and how many stars can be seen? No.

What you see and hear is how many millions of dollars a particular event added to the area's economy. The visitors do not need to be reminded about all the dollars that they dropped into the coffers of the casinos. The Industry Vista column of Sept. 22 hit the target. The perception of most visitors to the area is negative.

This can be directly attributed to the image portrayed in the media by the media personnel, the politicians and the RSCVA. The top headline on Page 1 A of the Sept. 23 RGJ 23 said, "Street vibrations brings bucks along with bikes" The people who need to know now many dollars a particular event brings in should be able to get that 3 2 1 From 1E Corporations are being asked to institute stronger controls to insure that people are doing things legally and that financial information is reported accurately. Corporate executives are being asked to stand front and center to shoulder criminal responsibility for irregularities. A serious question around the water cooler is how your CFO will handle the "perp walk" a raincoat over the handcuffs being the preferred alternative.

As always, those who are most committed to doing the right thing suffer the most anxiety. They understand any corporation has thousand of working parts. They must rely on some level of ethical integrity within their management structure because the alternative of an overdeveloped audit structure would drive expenses through the roof. Sadly, attitudes about "right" and "wrong" are so confused you must question how trusting you think? The Reno Gazette-Journal Business section welcomes your views on our Monday Industry Vista column. Please e-mail your letters to businessrgj.com, fax them to (775) 788-6458, snail mail them to Business section, Reno Gazette-Journal, Box 22000, Reno, NV 89520-2000 or drop them off between 8 a.m.

and 5 p.m. weekdays at our office at 955 Kuenzli St. in Reno. Here is one reader's comments on John Kirsche's Sept. 22 column: If the RenoTahoe area is ever going to become an all-around tourist destination, the powers to be (print and electronic media, local politicians, and RSCVA) are going to have to change their mentality of greed.

A normal visitor to the area would budget for the trip. Most visitors probably significantly exceed their expected budgets, but look at any media presentation about the area and what do you see or hear? $600- 500 300-- 200 -1- -f 1 11 100 2000 2001 2002 2003 COMING NEXT MONDAY: A look at Washoe County room occupancy, RenoTahoe Airport passenger counts and cargo counts. Sources: Nevada Gaming Control Board, Department ot Taxation and Department of Employment, Training and J. KarawsUReno Gazette-Journal.