So long, casino; hello, condos
Golden Phoenix shuts early; 400 jobs gone
Ryan Randazzo
RENO GAZETTE-JOURNAL
Posted: 11/16/2005

Golden Phoenix slot mechanics Rick Hennig, left, and Cliff Newcomb move some slots into position in the casino’s small Virginia Street location. The main casino closed ahead of schedule to begin the conversion to condominums, and some of the newer machines were being transferred into the smaller location.
The lights were off at the Golden Phoenix in downtown Reno on Tuesday, a day after its closure.

So long, casino; hello, condos

The Golden Phoenix Hotel Casino and Resort has joined the Flamingo Reno as a chapter in Reno's gambling history, closing ahead of schedule to allow employees to find new work and construction to begin on a condominium conversion.

The hotel and main casino quietly closed Monday, with officials locking the doors, turning out the lights and sending would-be bettors to the Phoenix's small, Virginia Street casino, which will remain open.

"We did not have the staff to continue operating," said Ally Visram, chief operating officer for Golden Phoenix owner Vista Hospitality Co.

He previously planned to operate until Dec. 6. before closing so the main building could be converted to condos, but many employees left after learning of the plans.

"I wanted people to go and look for other great jobs and not drag this thing out," Visram said.

Some employees still are with the company, but will work their last day soon, resulting in 400 jobs lost, he said. They will be paid through Dec. 6, Visram said. About 50 will stay to work the Virginia Street casino that connects to the main building via a sky bridge.

A job fair Nov. 9 drew 24 employers to the property soliciting the workers, Visram said.

Vista is selling the main 604-room hotel building to L-3 Development, which will convert the structure to The Montage -- 384 condos selling from almost $200,000 to more than $600,000, with 40,000 square feet of retail development on the first floor. Completion is expected by June 2007.

The main casino opened in November 2002 after the hotel's April debut. The property had operated as the Flamingo Reno until October 2001.

"It's the greatest thing in the world this place is going to stay open," said Cliff Selmela, 65, of Reno as he drank and gambled at the small casino Tuesday.

"You need the downtown casinos," Selmela said. "After a shift, workers need a place to come down, get two drinks for one. You need a place to relax."

Visram said Vista, which has headquarters in New York and Canada and operates several hotels outside Nevada, has no plans to close the small casino or relocate its license.

Workers moved the newest slot machines from the large casino into the small one Tuesday.

"It is a great little casino to come back to," Visram said. If the small casino generates enough traffic, Vista could bring table games in, but for now it is slots only.

The wedding chapel, Vinos restaurant, Taqueria La Michoacana, Pizza Hut Express, Dryer's ice cream and Subway sandwiches also will remain open, he said.

People with hotel reservations were booked into other downtown properties, he said.

Officials would not disclose the purchase price of the hotel building, but said the sale will not close until next year. Vista paid $6.75 million for the entire property, and Visram said the company will come out about even on the venture after the sale of the main building.

While the building will be a dark spot on the Reno skyline until the condos open, nearby businesses said the transition is positive.

"We absolutely see an opportunity from the condos," said Jay Thiel, vice president and general manager of the nearby Sands Regency Casino & Hotel.

If the units at The Montage and at least seven other downtown condo projects fill up with full-time residents, business will be booming downtown, Thiel said.

"If urban living truly is going to be a trend, it can only be good for casinos downtown," Thiel said.

"If people are just buying them as an investment, and won't be living in them, or come here only once or twice a year for a week, that sort of defeats the purpose."

The Sands took part in the job fair at the Phoenix, and got only five applications during a full day at the property soliciting employees about to lose their jobs, Thiel said.

"I believe everyone that wants a job has got one," he said.