Reno Gazette-Journal from Reno, Nevada • Page 33

Coming in Sunday Business Investlna: What's the key liecr ti tin rnrrnf mum a fund scandal? When you buy a fund, your performance USINESS doesn 1 ust depend on the lllldllCldl IliaiKiria. rvaillll, IV also hinges on the behavior of your fellow fund investors So pick your friends carefully. KRT SECTION SATURDAY, NOVEMBER 8, 2003 Sundowner abruptly closing Monday, three weeks early 375 out Of work: Casino can't sustain financial losses; workers will not receive severance pay. losses. While some employees reported that a possible new owner is said to be interested in the Sundowner, officials, who could not be reached Friday, have announced no plans for the building.

"This announcement today made it official," employee David Brown, who's worked at the Sundowner for Vlx years, told KTVN Channel 2 News. "If the speculation is true, hopefully they will have the new casino opened up within the next few weeks or so. There "We have had some struggles," chief financial officer Rob Whittey, a 15-year employee, told the Reno Gazette-journal last month. "The overall image of Reno and its ability to attract new tourists and develop new markets just hasn't been there. And we, at our particular location, just really suffered from that." Many of the 300 full-time and 75 part-time employees said among the reasons they enjoyed working at the hotel-casino is the camaraderie.

"It's the best job I ever had," cocktail waitress Belynda Adair told KRNV News 4. Casino Shift Manager Jim Trentham said, "It's friendly not only with the customers, but with the employees." Workers will not receive any severance just their salary and vacation pay, Whittey has said. Sundowner officials did conduct job fairs in hopes their workers would find new employment, but most still are searching. close Dec. 1 because it "cannot continue to operate in the gaming industry climate." But Friday the news was worse: The hotel-casino couldn't hold on for even three more weeks.

Employees said they were gathered together and told not to show up for work Monday because owners must cut their STAFF REPORT Employees at the Sundowner Hotel Casino in downtown Reno were told Friday that the property will close Monday morning three weeks earlier than planned. Last month, co-owner George Karadanis told workers the money-losing property would it-- Judge lets Nevada utilities post funds in Enron dispute Collateral: Bonds and cash placed in escrow while case is being appealed. ASSOCIATED PRESS LAS VEGAS Nevada's main electric utilities gained some time and stability after a judge in New York let them fost bonds and cash as col-ateral while they try to settle a $336 million contract dispute with bankrupt energy trader Enron Corp. U.S. Bankruptcy Court Judge Arthur Gonzalez ruled Thursday that Nevada Power Co.

and Sierra Pacific Power can place $338 million in asset-backed bonds in escrow while they appeal his ruling in favor of Houston-based Enron. The Nevada companies also must place into escrow $280,000 in cash to cover interest, and another $35 million in cash within 90 days of the judge's final order on the stay. "The judge's ruling now allows us to move forward with our appeal," said Walter Higgins, chief executive of the utilities' parent company, Reno-based Sierra Pacific Resources. "We do not believe our company should be required to pay Enron for power that was not deliv- is speculation the new owner may rehire those who didn't find jobs." The property, which opened in May 1975, has been for sale for several years. Karadanis said in a January 2001 interview that he was "desperate to sell (because the property hadn't) made any money in four years." The hotel-casino's problems worsened in 1995, when the Silver Legacy Resort Casino opened, officials have acknowledged.

ON THE WEB See this story for links to Reno-area ski resorts TfXfJ and snow conditions: RGJ.combusiness. close competitors, like Mount Rose, replaced their quads, but this is going to bring a lot of people back to Diamond Peak." Daily, all-day lift tickets for adults at Diamond Peak will be $44, up $3 from last year to help offset the cost of the lift. See RESORTS on 2D west controls more than 50 percent of the market. Major airlines recognize the threat imposed by the discounters and are struggling to dramatically lower their operating costs before they lose more customers. Richard Anderson, CEO of See LOW-FARE on 3D Bins Scott MyReno Gazette-Journal SNOW PLAY: Five-year-old Wayett Keysor gets a tow up to the lift by his mother, Jody, during opening day at Mt.

Rose Ski Tahoe on Friday. Sri! pa Ready to go: Ski areas hoping to take advantage of wintry weather to open as early as possible. The fast new lift should be up and operational by Dec. 18, when the resort opens. Removing the old lift and getting preparations in place for the new one called for helicopter aid in August and September, part of the $2.8 million project.

The Incline Village General Improvement District board of trustees, which oversees the resort, approved the lift. "It's pretty much standard these days that ski areas are putting in high-speed lifts," said Missy Hinton, spokeswoman for Diamond Peak. "I think we lost a lot of customers when our Ely group plans road trip in search for Penney replacement By Thomas J. Walsh and Ryan Randazzo RENO GAZETTE-JOURNAL The ski season might not be fully under way until the end of November, but early snow has prompted some lifts, like one at Mount Rose, to begin moving, as ski resorts scramble to capture as much business as they can before the unofficial Thanksgiving weekend launch date. Nevada Power Sierra PacifirjA, ered, and at unprecedented high prices largely caused by Enron's manipulation of the energy market," he said.

The judge agreed to delay enforcement of his August ruling that contracts between the Nevada utilities and Enron during the 2000-2001 Western energy crisis were valid. That ruling was based on a June decision by the Federal Energy Regulatory Commission that despite market manipulation, the contracts were valid. Enron, which filed for bankruptcy in December 2001, canceled contracts with the Sierra Pacific subsidiaries in May 2002 and refused to deliver power after Nevada Power lost a key state Public Utilities Commission rate recovery case and the utilities' credit was downgraded. Enron demanded more than $300 million in contract termination penalties. The Nevada utilities are also asking FERC to reconsider its decision on the Enron damages case.

Sierra Pacific last week gained state PUC approval to issue the $338 million in secured bonds as collateral. place J.C. Penney, which is scheduled toclose next summer. Team members will tour the Powell Mercantile and meet with community leaders to review processes used to unite the community behind the home-grown retail store. lone Jackman, who owns the building that the Ely Penney's now rents, will be one or the three on the trip.

"We'll be inspecting their building, and learning what they did to get it going," Jackman said Friday. "We'll learn how they set up their business so that we can follow it." Jackman said she also wanted to know how the See ELY on 3D Daily Features Sunday: Information Bank Local Stocks and Licenses; Investing The Motley Fool and Stock Game. Monday: Business Technology Bytes, Plugged.ln, Sites.Comment and Wired; Economic Indicators and Weekly Planner. Tuesday: Small Business. Wednesday: Information Bank-Bankruptcies, People and Watch.

Thursday: Information Bank-Conventions, Gaming and Job Fairs. Friday: Real Estate Building Permits and Locally. Saturday: Spotlight and Weekly wan street. Updates: I atflst ripuc o4h lyodscom rgj.combusiness Low-fare airlines' prices challenge major carriers The word from avid skiers in the region is that the Diamond Peak Ski Resort at nearby Incline Village will be much improved this year, thanks to a new "high-speed quad" four-person lift that will help get weekend crowds up the mountains faster, and, presumably, happier. The new lift will propel skiers up to the elevation in about five minutes, management said.

"I couldn't find a ticket any cheaper. Every airplane is basically the same. One seat fits all. I don't care whose logo is on the plane. I just want a cheap ticket." Golden is like hundreds of thousands of other cost-conscious travelers nationwide.

Whenever possible, they're ignoring big name carriers with Investing Dow Nasdaq Powell, Wyo: Town faced similar circumstance as Nevada city. By Joyce Swanson RENO GAZETTE-JOURNAL A trio of Ely resident will fly to Wyoming on Tuesday to gather information about the town of Powell's locally run clothing store, which opened after a large chain department store closed down in 2000. The group, part of Ely's Penney Replacement Team, will gather information about how to create their own clothing store to re poll pricey tickets in favor of low-cost, no-frill airlines. Travel on discount airlines is soaring at the expense of the major carriers. About 28 percent of all domestic tickets are now purchased from low-fare carriers, while ust 1 3 years ago that number was less than 3 percent.

At RenoTahoe International Airport, low-cost carrier South 4-7D What Question: By Joel J. Smith THE DETROIT NEWS When Melanie Golden wanted to buy an airline ticket to fly to San Diego for a friend's wedding, she had three criteria for selecting her carrier: price, price and price. "I chose Southwest," said Golden, 3 1, of Plymouth, Mich. Attention businesses Community service: Tell us what your business does during the holiday season and year-round to help the community. Send the name of your company, contact person, contact information and a brief synopsis about what your company does in terms of community service to Tracy S.

Jacobs, Reno Gazette-Journal, P.O. Box 22000, Reno, NV, 89520 or e-mail tjacobsrgj.com. Contact Us Business editor: Edward H. Shur, (775) 788-6428 E-mail: businessrgj.com Circulation: (775)786-8744 Classified: (775)348-7355 are your views on this week's question? How are you responding to the surging stock market? After voting, please e-mail your views and comments to businessrgj.com. I'm buying in again.

I'm fearful another plunge is coming. I'm waiting for a 10,000 Dow. I'm waiting for a 2,000 Nasdaq. I'm staying out of the market entirely. 9,809.79 1,970.74 1,053.21 interest rates ciou igo no Average rate paid on bank money-market accounts 0.50 0.50 0.95 (Bank Rata Monitor) 91 -day Treasury Biii Yield .0.95 0.95 1.22.

10-year Treasury Note 4.44 4.30 3.85 Commodities Commodities Research Bureau Index 251.03 247.58 227.66 Associated Press Commodities Index 758.37 756.20 749.14 This past week's Business Poll asked readers what the by Park Place Entertainment to sell the Reno Hilton means. Nearly one-third of the 60 respondents think no one will buy it: Park Place Is giving up on the Reno market: 41 .67 percent. Park Place didn't want to invest in It: 20 percent. New owners must spend big on marketing: 6.67 percent. New owners should double the number of rooms: 0 percent.

No one will buy it In Reno's falling gaming market: 31 .67 percent. Here are the comments from some of those readers: See BIZ POLL on 3D Vote: rgj.combusiness. E-mall your views: businessrgj.com. Results: Saturday. Inside Today Weekly Wall Street: Investors, having learned a tough lesson the past three years, are approaching stocks with more rationality than in the past.

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