january 1995

Nevada's Only Statewide Business Magazine

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A member of Sierra Health Services, Inc. Please refer to the Certificate of Coverage for limitations and exclusions. 6_L ~BUSINESS JJromthe Of course, the Democrats will fight ~tor this, and some insiders believe we may not know until the session begins who ~OURNAL will be in control of the State Assembly. One bright note for Nevada businesses is the phenomenal success of the Chamber of Commerce. The Chamber, which in previous years hasn't enjoyed all that much luck with the can­ didates it supported, had a rather large stable of winners this time. Out of the 26 candidates the organiza­ by Connie Brennan tion endorsed, only one - Kathy Von Tobel in Assembly District 9 - lost. PUBLISHER An but a few of the political signs that However, Von Tobel is one of those chal­ Lyle E. Brennan have graced our roadways and neigh­ lenging her defeat, so the real outcome borhoods for the last several months are of that contest won't be known until the ASSOCIATE PUBLISHER - EDITOR gone, signaling an end to the political Assembly convenes. Connie Brennan season. There's only one word to ade­ All this means that business should ASSOCIATE PUBLISHER- NORTHERN NEVADA quately sum up the results of the 1994 have a sympathetic ear when it comes to Eklof & Associates election season: "WHEW!" deciding state issues such as tax policies ASSOCIATE EDITOR -ART DIRECTOR As lawmakers sharpen their pencils and and funding requests. Barbara L. Moore prepare to convene in mid-January for Although term limits initiatives were SALES MANAGER the 1995 legislative session, political ob­ on quite a few ballots nationwide this Justin Halliday servers are still stunned at the results of year, the -v oters decided to impose their SENIOR ACCOUNT EXECUTIVE Chuck Dandy the 1994 elections. own term limits. They chose not to sup­ Never before, since perhaps the Rea­ port longtime career politicians, some of CIRCUlATION/ DISTRIBUTION Margaret Cooper gan landslide in 1984, have so many seats whom had served three or four decades. CONTRIBUTING EDITORS exchanged hands statewide. That's also The nation's voters have given our Tom Dye I Debra Lynn Deming I Kathleen Foley about how long it's been since the Re­ leaders the mandate that they want a shift Russ Gardner I Van Heffner I S.M. Luna publicans have controlled both the State back to more conservative policies, less Joe Mullich I R. Keith Schwer I Sharon Uithoven Assembly and' Senate. taxes and definitely less government in Carol Vilardo I Lynn Waddell Most of the state's political watchers, our lives. That should bode very well for NORTHERN NEVADA SALES REPRESENTATIVE and probably quite a few of the Republi­ the nation's business community. Eklof & Associates 589 California Ave • Reno, NV 89509 cans who won, were amazed at the depth On a federal level, Nevadans, like vot­ (702) 323-8013 of the G.O.P. carnage. Even some of the ers across the rest of the U.S., decided Democrat's strongest seats were in jeop­ they wanted a more conservative look in The Nevada Business Journal is listed in Standard ardy this year. the nation's capital and bounced incum­ Rates & Data, #20A-Business-Metro, State & Regional. NBJ has applied for membership in BPA International. On a statewide basis it remains to be bent Congressman James Bilbray from Adverti sers should contact Chuck Dandy at (702) seen how business will fare at the state office for political newcomer, John En­ 735-7003 in southern Nevada, or Eklof & Associates at (702) 323-8013 in nonhem Nevada, or write to: The Legislature. While the Senate is firmly sign. A former veterinarian and gaming Nevada Business Journal, 2127 Paradise Rd. , Las in Republican control with a 13-8 split, executive, Ensign ran an aggressive cam­ Vegas. NV 89104. Demographic information available upon request. Month-to-month circulation may vary. the Assembly is divided evenly at 21 paign with very few mistakes. The Nevada Business Journal corporate offices are seats for each party. Initial meetings have But while the Republican tide swept located at 2127 Paradise Rd .. Las Vegas, Nevada 89 104. NBJ is published monthly, bulk postage paid. Subscrip­ been held to divide the leadership and many incumbents from office, Nevada tion rate is $36.00 per year. Special order single-copy pri ce is $3.50. chairmanships evenly amongst the par­ was one of the few states in the nation to All contents 1995 copyright, and reproduction of ties, but as of press time, the Republi­ reelect a Democratic governor and U.S. material appearing in NBJ is prohibited unless so au­ thorized by the publisher of NBJ. cans had challenged two Democratic Senator. Both Governor Bob Miller and CHANGE OF ADDRESS: Please send previous ad­ seats - Chris Giunchigiani and Vivian Senator Richard Bryan easily defeated dress or mailing label & new address. Allow six weeks. EDITORIAL SUBMISSIONS: Address all submis­ Freeman- giving them a temporary two­ their opponen . sions to the attention of Connie Brennan. Unsolicited seat majority. Because of these chal­ It's easy to see 199 w manuscripts must be accompanied by a self-addressed 1 stamped envelope. NBJ assumes no responsibility for lenges, the Legislative Counsel Bureau esting year for ~ evada ·~si:l::::sses... un solicited materials. has issued an opinion giving G.O.P. offi­ for those of you \\ · o "" DISCLAIMER: Editorial views expressed in this magazine are not necessarily those of the publisher. cials the right to organize leadership and of politics. there ~- - committee chairs on opening day. City elec -o~ -~- American Nevada

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Hake Green Valley's business your business. For more information about available space and sites in Green Valley, call American Nevada Corporation at 458-8855 january 1995 IC 0 NTENTS Volume 10 -No. 1 Features D THE EVOLUTION OF GAMING The changing face of Nevada's prime industry can be witnessed across the state as gaming establishments evolve and grow to keep pace with market trends. m Enthusiasm Builds for Development Plans Major development plans have been set in motion to reestablish downtown as the legal, financial and government center of the metro area. m Plans for Lavish Island Resort on the Strip Revealed by Mirage Resorts The upscale 3,000-room Beau Rivage Resort will be situated on a lush island, surrounded by a 50-acre lake on the former site of the Hotel. m . THE CPA: A Changing Role in Changing Times The role of the CPA has expanded from that ofjust preparing financial statements and tax returns to providing valuable personal and business advice as well. ED INSURING YOUR FUTURE Insurance experts estimate 90 percent of small businesses are underinsured. Don't fall · prey to this common oversight.

Departments m SPEAKING FOR NEVADA The changing face of Nevada's gaming and hospitality industries by Van V Heffner, president of the Nevada Hotel and Motel Association m SPEAKING FOR,NEVADA Need a Solid Business Partner? Look to a CPA by Sharon Uithoven, executive director of the Nevada Society ofCPAs EIJ BUSINESS PROFILE Award-winning UNIGLOBE travel franchise celebrates expansion EIJ EXECUTIVE SUCCESS ----T'M CI'f.: J. ...,...... -- ...... ,--_ Sierra Pacific Resources and Walter M. Higgins - Profile of a merger and a man ~ ~~ - -~ Cover art by Las m TAXTIPS Vegas watercolorist A taxing question: Does growth pay for itself? Dottie Burton. PEOPLE ON THE MOVE About the artist: EEJ Dottie Burton has Highlighting the movers and shakers. studied with some of BUSINESS INDICATORS the most outstanding EIJ Most believe U.S. economic gains will continue into 1995. In Nevada, growth watercolorists in the United States. She has continues to outstrip national rates. traveled - and painted EI] NEVADA BRIEFS: Medical facility opens in northwest Las Vegas • Comstock Bank subjects- throughout reports strong third quarter • First Interstate selects Reno for new center • Howard Europe, Mexico, the West Indies, the Hughes Corp. announces new medical complex in Summerlin • US. Bancorp reports United States- and strong loan growth • Nevada's first tribally-owned set to open. especially, her home state of Nevada. EIJ New! Business Humor Column COFFEE BREAK by joe Mullich "If you hire them, they will sue." The Evolution BfjGaming

Southern Nevada by Lynn Waddell

WHEN opened in 1989, it was the first panding, preparing to capitalize on the planned new resort to open on the since the Fremont Street Experience, a city re-development MGM Grand- now Bally's Grand- in 1972. project, designed to stimulate business. What has happened since has been no mirage. Four In all, some 36,500 hotel rooms are planned for major Strip resorts have opened in the past three years, completion before the next century, according to Las and there's no end in sight. Vegas Convention and Visitors Authority statistics. Another five mega resorts are planned at the heart "This new wave is going to be kind of interesting," of Clark County's gaming mecca. The area's main, said John Schibrowsky, a University of Nevada Las neon thoroughfare is to get another 11 ,500 rooms by Vegas marketing professor. "Some are going right back 1997. That's in addition to the existing room inven­ after families. What's really surprising is that tory of 86,000. everybody has so much confidence." Yet, they are only a fraction of the additional rooms Analysts are skeptical that all of those planned, new planned for the . The success of the rooms will materialize. However, those involving new Luxor, the MGM Grand, and Treasure Island, major gaming companies are more secure, they said. have spawned another wave of expansion that goes "A lot of these are just proposals, nothing more," far beyond the Las Vegas Strip. said Peter Bucchieri, president of Bucchieri Assets New , targeting the growing local popula­ Management in Las Vegas. "I get a lot of calls from tion, are being constructed. Downtown resorts are ex- people looking for money."

6 Nevada Business journal • janu ary 1995 Fueling the expansion, is a steady gain Ave. and South, di­ "It's really interesting to see what the in visitor volume to the area. Despite the rectly across from the MGM Grand Ho­ hybrids are going to be like when they 13 percent increase in the number of tel, Casino & Theme Park. open up," Schibrowsky said, "Are they available rooms last fall - an addition of "When completed in 1996, this new going to be a wonderful blend or a Jekyll­ more than 10,500 rooms - hotels and project will showcase one of the most and-Hyde sort of thing?" motels have continued to enjoy rising unusual casinos ever built in Las Vegas," For Mirage Resorts and Gold Strike occupancy rates. said Bob Maxey, MGM Grand chairman Casinos, the partnership allows each to Las Vegas Convention and Visitors and chief executive officer. enter a new market niche. Mirage has Authority (LVCVA) representatives Maxey is not worried about oversatu­ centered on more high-end clientele, project the area will see up to 27 million rating the market. The MGM has been while Gold Strike caters to value-oriented visitors this year. That's up from 22 mil­ filled since it opened December, 1993. customers. This will be the first Strip lion last year. "It's a drop in the bucket," said Maxey, property for Gold Strike. It's other four So far, those estimates are holding true. referring to the capacity New York-New hotel-casinos are just outside Las Vegas. Non-gambling attractions such as theme York will add. "There's a train moving According to Steve Wynn, Mirage Re­ parks and high-tech displays have been through Las Vegas, and there's room for sorts chairman and chief executive of­ drawing more people. From August 1993 several more properties." ficer, "This particular resort will allow the to August 1994, the area experienced a MGM already owned the 18 acres Mirage to enter a market segment where 23 percent increase in tourism. where the new casino is to be built. we do not already compete, allied with Increased numbers of visitors drove Primadonna contributed about $40 mil­ another skilled management team, whose occupancy rates up 4.3 percent during the lion and now the two firms will build and record as a low-cost operator is superb." first four months of this year, said Terry operate it equally, Maxey said. The new This partnership plans a $250 million Jicinsky, LVCVA research analyst. company will be privately held by the two resort, which will cater to the value-ori­ "Everything just keeps going up , no publicly-traded companies, he said. ented market. However, the theme and re­ matter how many new rooms we get," MGM was interested in the partnership sort plans have not yet been revealed. Jicinsky said, "The new resorts are cre­ because it allows the company to pursue Unlike the MGM/Primadonna partner­ ating so much new demand." other projects, such as the recently ship, though, Gold Strike will operate the Joe Milanowski, USA Capital gaming announced agreement with China to new resort independently. analyst, said the current national eco­ explore development of two casinos on This aspect enables the Mirage to con­ nomic condition should enable Las Vegas the island of Hainan. centrate on the more posh resort it plans to handle the additional rooms. to build on the other side of the Dunes "So far, we are at a pace for 27 million site- the Beau Rivage. annual visitors," Milanowski said. "That Partnerships among casino "This is the initial step in transforming will keep a lot of guys healthy and means companies becoming a trend. the 164-acre Dunes site into the next gen­ we can support a few more hotel rooms." eration of entertainment resorts in Las The more substantial projects have one In addition to the MGM Grand/Prima­ Vegas," Wynn said. "It will complement thing in common: they continue the trend donna collaboration, a number of other and enhance the wholly-owned, luxury of non-gaming entertainment that has gaming firms are considering, or have property that we intend to build at the Fla­ proven successful thus far in the '90s. entered into, affiliations of varying mingo Road end of the Dunes property." The popularity of the whimsical MGM degrees. Usually these agreements are Wynn, this fall, unveiled his ambitious Grand Hotel, Casino & Theme Park has designed to take advantage of the plans for the 3,000-room Beau Rivage. prompted MGM company executives to strengths of each participating firm. The S-shaped tower and casino will sit plan another resort, also offering amuse­ "This is a trend that will be interesting amidst a 50-acre man-made lake. Gam­ ments other than gambling. to watch," said UNLV professor John ing analysts and local officials are enthu­ Following the trend of non-gaming Schibrowsky. "It's all in the notion of siastic about the project that is to cost entertainment as a lure, New York-New taking two organizations with varying between $700 million and $900 million. York, being developed in partnership with skills, and combining them to get the best "Steve Wynn is a brilliant creator. He Primadonna Resorts, Inc. , will replicate of both worlds." is so detail-oriented," said Peter Bucchieri famous New York landmarks, such as the Mirage Resorts has paired with Gold of Bucchieri Assets Management. "There Chrysler building, the Statue of Liberty Strike Casinos to build a resort adjacent just seems to be no flaws at the Treasure and the . It will be to New York-New York, on the former Island or the Mirage." built on the northwest corner ofTropicana Dunes site. The Beau Rivage promises to bring yet

january 1995 • Nevada Business journal 7 another form of entertainment to the Strip location and the extensive refurbishing Casino of Lake Tahoe, the 28,000-square­ - water sports. The lake surrounding the needed to open the property. foot casino is expected to succeed. resort will accommodate windsurfing, "They should do well, just tapping off boating and a water stunt show. their existing restaurant draw, as well as The project is to be completed in 1997. Construction delayed on the being in a location where they are spot­ Another unusual union is the publicly­ Desert Kingdom. ted as tourists come in from the airport," traded, Stratosphere Tower Corporation. Schibrowsky said. "It's truly a casino that Vegas World owner has The only major Strip project, now in will have an inside line on the Baby united with Grand Casinos to build the question, is ITT Sheraton's Desert King­ Boomers, as opposed to other marketers 1, 149-foot tower, plus a 2,500-room, dom- a 25-story resort, which would who have focused current efforts on fami­ $300 million hotel-casino on recently attempt to replicate a mythological lies and senior citizens." acquired, nearby property. It is expected palace, complete with gargoyles and The 345-room hotel-casino, near the to be completed in the fall of 1995. dragons. A relative newcomer to Las shadow of the giant guitar, is on a com­ This resort will give Grand, the Min­ Vegas, the company has armounced it is mon taxi-route from the airport. nesota-based gaming company, control of delaying construction on the planned Less touted projects planned near the a major property in Las Vegas, where they $750 million resort, to have been built Strip, include: Radisson International's currently have no holdings. beside the Sheraton . 3,003-room resort; the Caribbean's 572- "Combining the gaming potential of The company has released no details, room hotel-casino; the Dynasty with 600 the new casino with the attraction of the only that construction is delayed. This has rooms; and the Star of the Desert, with Stratosphere Tower, provides Grand with lead to speculation that the company 300 rooms. -. a unique and major gaming entry into Las wants to expand room capacity in the Las Vegas," said Grand Casinos Chairman Vegas market more quickly than the Evol-ving market has analysts· Lyle Berman, in a prepared statement. Desert Kingdom project would allow. optimistic. When plans were unveiled for the Desert Other Strip resort expansions Kingdom, a company spokesman an­ Overall, analysts are optimistic about nounced that "ITT Sheraton's reserva­ the expansion in Clark County. are planned or underway. tions offices, this year, have received Some are concerned, however, that the 140,000 r~quests for lodging in Las Ve­ type of customers being attracted to the 0 ther resorts on the Strip that are gas, that they have been unable to satisfy." new Las Vegas aren't gamblers. Non­ expanding to capitalize on the increased Editor's Note : At press time, New York­ gaming entertainment increases the demand for rooms and gambling outlets based ITT Sheraton announced an agree­ demand for Las Vegas, but those same include the Boardwalk, Flamingo Hilton, ment in principle to purchase Caesars attractions may be lessening the typical Polo Towers, Sands, Desert Inn, Stardust World for $1.7 billion. The transaction is visitor's time in the casino. The average and the . scheduled to close sometime during the amount of gambling money won from Another proposed development along first quarter of 1995. lf completed, the each visitor was down 6 percent in the the Strip corridor is El Rancho 's Coun­ Caesars World purchase will place ITT first five months of 1994, compared to the tryland U.S.A.- a planned renovation of Sheraton in the top ranks of the gaming same period in 1993. the El Rancho Hotel, which was pur­ industry. In addition to its current Las Mega resorts are responding to the chased by California-based Las Vegas En­ Vegas holding, the Desert Inn, ITT decrease in gaming by increasing the cost tertainment Network (LVEN) in Novem­ Sheraton also owns a Mississippi of their services. For example, tickets to ber, 1993. The El Rancho has been closed riverboat gaming operation. the Mystere show, at Treasure Island, cost since July 1992. $52. An average weekend room at the Next year, publicly-traded LVEN plans Luxor rents for $139 a night. to revamp the property and add a 993- The ((Strip" grows beyond Las "Maybe they are charging more," room hotel tower that looks like cowboy Vegas Boulevard South. Milanowski said, "But they are going to boots. The long-term plans for the new get the money from people one way or resort include a rodeo production facility Limited, cost-prohibitive space on the another. Whether that's good or bad, it's and a family-oriented theme-park, featur­ Strip has caused other developers to seek hard to say." ing country entertainment. casino sites off the main thoroughfare. The availability of inexpensive, qual­ Some analysts are skeptical LVEN will The $80 million Hard Rock Hotel & ity food, though, is probably going to con­ raise the necessary $50 million, both Casino, just open, is one such project. tinue, both for the tourist market and the because of the lack of activity around the Managed by Harvey's Resort Hotel and growing local-oriented resorts.

8 Nevada Business journal • january 1995 ONO/\\URA 633 West fifth Street, Los Angeles , CA 90071

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Local population growth creates cusing on geographic locations, not dif­ west Las Vegas. On the opposite end of expanding market niche. ferent themes. It's like putting in three the valley, the Ranch at Westgate wiH be McDonalds in different parts of town." part o1 a planned community. • People continue to move to the Las Developed by MarCor Resorts, Inc., Maloof Hotels, from New Mexico is Vegas area at a steady average of 4,000 the Rio Hotel/Casino on Flamingo - a developing a new Southwestern-themed per month. local favorite - is in its third expansion resort, called the Fiesta in North Las Ve­ "It's fairly cyclical," Schibrowsky said. phase with the addition of 550 rooms. gas. From Dallas, the Crown Casinos "With all this growth on the Strip, more The company also has tentative plans Corp. has plans to build the $80 million people are moving here to fill those to make better use of its prop­ Desert Winds Hotel/Casino, geared for lo­ jobs, so more casinos are going up to erty in Henderson. The fake Western town cals, near the Rio and Gold Coast. serve the locals. To some extent, it's self­ is currently used only for special occa­ Still on the drawing boards are Car perpetuating." sions, but the company is considering a Country Resort, incorporating car deal­ Station Casinos, having found a for­ 600- to 700-room hotel casino at the site. erships and the Quarry Partnership. If mula for success with on In addition to his successful operation completed, the two jointly would add West Sahara Boulevard, opened its $103 across the street from the Rio, Gold Coast 6,200 rooms. million , on the east side, operator Michael Gaughan, also has plans on August 23. The resort has been so for more hotel-casinos to serve locals. successful, that it had to close its doors Further northwest, Arizona Charlies Too much, too soon? several times during the opening phase, eliminated it's bowling alley to expand because it met capacity. its casino and add 168 rooms scheduled Sorne industry analysts believe this This month, Station Casino plans to to open this month. explosion is too much, too soon. begin a similar resort on the southern part At the far northwest tip of the valley, "I think it's close to its saturation point of the valley called Sunset Station. Frank the Santa Fe Hotel and Casino, which first and I'm fairly cynical about the success Fertitta III, Station chairman, says the opened in early 1991 , just completed an of some of these resorts," Schibrowsky company owns land for another east side $18 million expansion. It adds 65,000 said. "They can't all continue to go after casino, but development will depend on square-feet, including three restaurants, a the same markets." the success of Boulder Station. The Fer­ new race and sports book, bingo hall, and Bucchieri echoed these fears. "I always titta family also plans to build the 200- a European-style pavilion that will house worry that the locals will say, 'We don't room Texas Gaming Hall and Hotel in the Santa Fe Coffee Company. want to play anymore."' North Las Vegas. Plans have already been Two upscale, locals-oriented casinos There may be an element of truth to submitted to the city. are planned as part of residential devel­ that projection. There is some evide "What they .are doing makes a lot of opments. Mountain Spa, a posh 326-room that newer Las Vegas residents do sense," Schibrowsky said. "They are fo- resort, is planned in the outskirts of north- gamble as much as the longtime resi

10 Nevada Business journal • january 1995 A recent survey by a Reno firm showed Most city officials and downtown ca­ Many plan to spend more on expan­ that in August, in seven local casinos, the sino businesses are optimistic, but not all. sion. Fitzgeralds is adding more casino number of gamblers only averaged 210 Milanowski said that downtown's trying space, rooms, and possibly a bowling al­ people per day above the same month in to directly compete with the newer Strip ley or movie theater. Boyd Gaming is 1993. The May and June figures were resorts, instead of finding its own niche. adding 146 rooms at the California Ho­ worse - they showed an actual decrease; "It's hard to compete with a pirate tel and is currently using the hotel space down 259 in June, and down 193 in May battle, a volcano, a pyramid and all the at Main Street Station. Boyd will reopen from the same month last year. In July, other attractions on the Strip," Milan­ the casino with more space, rooms and a the number was up only 102 gamblers. owski said, "I have my doubts about how parking garage after the Fremont Street well a light parade will hold up. " Experience opens. However, project developers say cus­ Downtown resorts are counting on the Investing hope in the Fremont tomers will prefer the Fremont Street project to revitalize their properties, be­ Street Experience. Experience to inflexible Strip attractions. cause gaming revenues, as of June 30, According to Kathilynn Carpenter, vice have declined 4 percent. Occupancy rates Lack of customers has been a problem president of Fremont Street Experience have been up, but there is a daily flood for downtown Las Vegas, but the Fremont Limited Liability Co., "People say they of guests leaving downtown to gamble on Street Experience, an ambitious four­ would come back, because it's not like the Strip, casino managers said. block, overhead light show, hopes to the volcano at the Mirage. With attrac­ "It used to be, you could count on your reverse the trend. The project includes a tions such as these, they say, 'You 've seen guests spending half their money in your lighted canopy, an ever-changing, com­ one, you've seen them all. "' casino, but that's not true any;Tiore," one puterized light and music show, new Betting this is true, downtown resort downtown executive said. "Now, they shops, a parking garage and the closing owners together have invested $18 mil­ treat us like a bed and breakfast. They get of four blocks of Fremont Street to cars. lion of the project's total $63 million cost. up and go to the Strip." •

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January 1995 • Nevada Business Journal II Northern Nevada

by S.M. Luna

An Northern Nevada casinos, great and owners. Park benches, and a touch of lion, 775-space "Parking Stadium", due small, are loosening their belts as progress greenery, make it a pleasant place to eat for completion by spring of 1995. and growth rear their inevitable heads. a sack lunch, or just relax. From the small, friendly, casinos that Ascuaga's Nugget is also helping to wave to passersby, to huge, bigger-than­ Carson City has been waiting for the eliminate parking problems for casino life structures that took more construction re-opening of the beloved Ormsby House patrons. The Nugget has opened a new workers to build than the pyramids, it in December. "Just like waiting for the $9 million, 1,250-space parking facility, seems everyone is getting in on the act. birth of a new baby," according to the new that will make life much easier for cus­ Here is an overview of properties, large director of sales and marketing, Ray Hoy. tomers. Down the road, the Nugget also and small, and the projects being under­ "Restoring the place back to the original has plans to build a family fun center. taken to accommodate industry growth. look is what we are trying to do. Having 400 employment positions is another With a decade of experience and strong Snuggled into the center of historic plus." The gaming will follow, according will to survive, the Carson Valley Inn in Carson City, lies Cactus Jacks, trying to to Hoy, after the hotel, restaurant and bars Minden, has mushroomed into northern be nothing more than a casino. Its warm, are all open. Nevada's answer for a full-entertainment down-home appeal has drawn crowds for "We are keeping the Rose and Gun facility. Still holding its own from the years. To step inside this unpretentious Logo," Hoy says happily, "It's just part multitude of additions and expansions al­ property, allows even the most conserva­ of the original Ormsby House." ready completed, the Carson Valley Inn tive gambler to feel at ease. Stepping out­ offers something for all types of tourist side takes one back to the days of yester­ What is one of the biggest complaints and entertainment-seekers. Some feel the year, to a cobblestone street lined with voiced by Reno visitors? Parking, of Carson Valley Inn put Minden on the late 19th Century paintings, replicating course. The Club Cal-Neva is trying to map. Even Late Show host, David Letter­ original Carson City businesses and their rectify this problem by adding a $10 mil- man, mentioned the town of Minden in a

12 Nevada Business journal • january 199 5 recent monologue. Hundreds of golf restaurant with a special Southwestern groups, tour groups and professionals mesquite-style barbecue. There will also have enjoyed the hotel/casino/RV resort. be a new buffet, a new keno counter and a mini-sports book." No. Reno's much ballyhooed "Project C" is not a secret military operation. It is The words, "World's Largest", always a 1,720-room, two city-block resort cur­ attract attention, especially when heard in rently under construction. This silver­ the Biggest Little City. Harrah's Casino studded, $310 million baby, is the joint Hotel, linked with the Hampton Inn, is venture of Circus Circus Enterprises and building a $29 million hotel that will add the Eldorado Hotel Casino. 408 rooms to downtown Reno. It will also The resort is based upon an attraction include more convention and retail space. on par with the themed resorts springing up in southern Nevada. Rising from the To find a place where one can take the casino floor, jutting up towards the sky, entire family is always difficult, but the Project C will feature a 120-foot tall, Reno Hilton is making a $1.7 million operational mining rig. The planned au­ effort towards that end. With the addition dio and visual special effects will rival of a 22,000-square-foot "Super Arcade", Hollywood. Several restaurants, plus it will appeal to all family members. 85,000 square feet of gaming and conven­ The Hilton's $86 million renovation tion space, will complete the project. also features the 450-seat Grand Canyon Buffet and the SuperBook sports book. Local television stations have featured Hilton gambling patrons will also enjoy the coverage of several Hollywood stars a 100,000-square-foot casino floor with visiting Reno for the opening of Planet themes of United States. Hollywood. Walking down the red-car­ peted ramp, owners Bruce Willis, Arnold Next spring, Reno's Peppermill will be Schwarzenegger and Sylvester Stallone adding a $60 p1illion, 400-room addition greeted crowds of cheering Nevadans. and a 16,600-square-foot casino expan­ We can finance The new restaurant, visited by Charlie sion to compliment last years ' add-ons of it. Sheen and many others, features movie 11 ,400 square feet. This expansion will Comstock Bank has the widest memorabilia, a gift shop, and even offers offer customers more than 1,200 rooms, variety of real estate loans in the buffet set another dining option: that renovation of the popular Pepperrnill Res­ evada .. . Lot loans, site develop­ of California-style cuisine. taurant, and a new steakhouse. ment loans, construction loans with permanent rollovers, The Bonanza's marketing public rela­ Due for completion by July 1995, the mortgages, even home improve­ tions representative, Stacie Wilke, tells Eldorado Hotel Casino is expanding with ment loans. If yo u need money the facts on what lies ahead for yet a $45 million, 12-story tower, which will for your home, yo u need to see another Reno casino. "We are adding feature an additional 12,000 square feet our bank. 3,500 square feet, which will include a of casino space. • Carson City 687-2700 Reno 827-6598 Caughlin Ranch 825-6700 Minden 782-2311 Las Vegas 631-1 5 I 5

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An expansion is planned for the Western-style Bonanza Casino.

January 1995 • Nevada Business journal 13 Enthusiasm builds for Downtown Las Vegas development plans

Business and civic leaders are upbeat about plans to bring more business .back to the center of Las Vegas. · "If you haven't bought property down­ town, you'd better buy now," said Bank of America, Nevada, president, Dick Etter. "If you build it, they will come." Other business leaders, like attorney John O'Reilly, agreed: "The heart of tlte , city is downtown," he said, "It's not. only where Las Vegas has been, but where Las A building is held together Vegas will be." Many elements contribute to the opti­ not only by concrete and steel, mism for city officials. They are looking at public/private partnership efforts, such but by trust and integrity. as the new state and county office build­ ings, the Fourth Street corridor improve­ ments, the Fremont Street Experience, the The largest structure is ultimately assembled one bolt sale of Main Street Station to the Boyd at a time ... and one promise at a time. Give us a call. Group, and the expansion of the Califor­ nia Hotel and Casino. We welcome the opportunity to meet and explain our There has been a significant increase approach to building your project, as well as our in leadership and commitment to devel­ approach to building a business relationship. oping a first class downtown, according to Mayor Jones, who reported a new re­ development strategy will be unveiled to serve as a blueprint for future efforts. Las Vegas Perini Recently, business and civic leaders previewed major development plans (702) 792-9209 Building relationships on trust. designed to reestablish Downtown Las Vegas, as the legal, financial and govern­ ment center of the metropolitan area. The preview included plans for the Koll City/Centre office building, to be located G on the northern half of the former Minami tower site. Phase I occupancy is projected Western Technologies Inc. by the first quarter of 1996. The Quality People "With attractive office space opportu­ Since 1955 nities added to a re-energized entertain­ ment corridor, and a dedication to in­ ENGINEERING, CONSULTING & TESTING OF creased public safety, the downtown ENVIRONMENTAL, GEOTECHNICAL & CONSTRUCTION MATERIALS will boom again," said Judi Wood} president of Lee & Associates Co TEL 702-798-8050 3611 W. TOMPKINS AVE . R.E. BRANNEN , P.E. cial Real Estate Services and mem FAX 702-798-7664 LAS VEGAS NV 89103 DIRECTOR the Koll team.

14 Nevada Business journal • January 1995 Nathan Adelson Hospice Providing. Quality Care and Compassionate Support Since 1980

and the bereavement process. a common bond - a commitment to Increases in the number and provide the best care possible for ter­ variety of patients, coupled with minally ill people and their loved ones. the needs of the community, Community supported hospice pro­ have led the Hospice to expand grams also share a common philoso­ its services to include: hospice phy: services to the residents of nurs­ ing homes, caregiver support "Hospice provides support and care in groups, bereavement support the last phases of incurable disease so groups for children and adults, that those suffeling from a terminal intensive grief workshops for illness may live as fully and as comfort­ children and adults, "Camp Ma- Hospice care allows patients to stay at home, ably as possible. Hospice recognizes in fa miliar surroundings. riposa", a special children's grief death as a part of the normal process of camping experience, and E.A.S .E. , living and focuses on maintaining the a specially trained response team quality of remaining life. Hospice af­ that assists emergency service per­ firms life and neither hastens nor post­ As the only full service, com­ sonnel with families at the scenes pones death. Hospice exists iJ:I the hope munity supported hospice program in of sudden deaths. The majority of that through appropriate care, and the Southern Nevada, the a than Adelson these services are offered for free , promotion of~a caring community sensi­ Hospice has been meeting the needs of or for a minimal charge to families tive to their needs, patients may be free the terminally ill and their families , for on the Hospice program and to the to attain a degree of mental and spiritual nearly fi fteen years. Founded in 1978, general public. In 1993, over 50% preparation for death that is satisfactory the Hospice began serving home care of the individuals who accessed to them. Hospice offers palliative care to patients in 1980, and in an effort to the support programs were not terminally ill people and their families offer its patients a continuum of care, affiliated witf"t the Hospice. without regard for age, gender, national­ opened a free standing inpatient facil ­ ity, race, creed, sexual orientation, dis ­ ity in 1983. Much to the surprise of the general ability, diagnosis, availability of a pri­ public, 94% of all patient care is mary caregiver, or ability to pay." a than Adelson, the program's name­ delivered in the home, or in a sake, was an active community mem­ homelike setting. The inpatient It is this philosophy of care, and the ber and the firs t administrator of Sun­ facility, which has 20 beds, exists needs of this community, that has rise Hospital. Following Mr. Adelson's to serve the advanced medical needs driven the a than Adelson Hospice to death, a group of his friends and fam ­ of Hospice patients. In addition, continue to provide quality care and ily committed themselves to finding most do not realize that the Hos­ compassionate support to terminally an alternative to traditional care for pice is a non profit organization, ill people and their loved ones in Clark terminally ill people. They believed and does not receive funding from County. In 1995, the Hospice will that the dying should be allowed to state or local government. Rather, celebrate its fifteenth anniversary of participate in decisions concerning the primary sources of funding are serving its first patient. their care, and that they should have from Medicare (reimbursement the opportunity to spend their last from the Medicare Hospice Ben­ For more information about the days in a familiar setting, surrounded efit), reimbursement from some Hospice, call 733-0320. by those they love. private insurance companies, and in a large part - by private dona­ Since 1980, the Hospice has provided tions. a highly specialized program of care to over 18,000 individuals and their fami­ Hospices across the country share lies , assisting them through the dying,

ADVERTORIAL BEAU RIVAGE: Plans for a Lavish Island Resort Hotel is Revealed by Mirage Resorts

Mirage Resorts announced plans to build a new gen­ the lake, an interconnecting transportation system will eration of destination resort on the former site of the transport guests between Beau Rivage, and its neigh­ Dunes hotel. 'Beau Rivage', which means 'beautiful boring sister property, being built in partnership with shore', will have 3,000-rooms and will be located on the Gold Strike organization. a lush island, surrounded by a 50-acre lake, at the fa­ Along the northwest shore of the island, a tempera­ mous four comers of the Las Vegas Strip. ture-controlled amphitheater will feature world-class Visitors to Beau Rivage will enter by footbridges water-skiers, whose performances will be highlighted and causeways from the Las Vegas 'mainland' . All by special effects. Mirage Resorts' production teams entrances will be surrounded by cascading waterfalls. are expected to be involved in this show, as well as a "Beau Rivage will be the most romantic hotel built theatrical extravaganza, comparable in quality to the in the history of the world," said Steve Wynn, chair­ Siegfried and Roy and Mystere productions. man of Mirage Resorts. Scheduled to open in late 1997, Beau Rivage is The casino, with Steve Wynn's typical attention to expected to create more than 5,000 construction jobs. detail, will be surrounded by a variety of restaurants, When open, it will employ more than 7,000 people. lounges and boutiques. The guest tower, rising above Construction will be funded through internal cash flow the island will offer panoramic views of the lake, and the company's existing bank credit lines. which will feature water recreation, including wind The construction of Beau Rivage, plus the cost of surfing, water-skiing, and parasailing. developing the neighboring resort (in partnership with At one comer of the property, a large, white sand Gold Strike), combined with the initial purchase of beach will remind guests of a Caribbean island. Along the property, is expected to exceed $1 billion. •

16 Nevada Business Journal • January 1995 • • •

Back Row, left to right: Ray Nolan, Ocean Spray Cranberries, member since 1993; Randy Dodd, Milgard Windows, member since 1992; Mike Walter, Household Credit Services, member since 1994; Scott Wallace, G. C. Wallace, Inc., member since 1975; Bill Hartman, Deloitte & To uche, member since 1978. Front Row: Tom Weisner, Big Dog's Hospitality Group, member since 1971; Dianne Ursick, Sprint Central Telephone- Nevada, member since 1977.

Nevada Development Authority's membership is comprised of an eclectic group of south­ ern Nevada business leaders. One of the things they have in common is their desire to be a part of the growth and diversification of our community. The commitment of its members makes it possible for NDA to continue attracting new companies- and jobs -to our area.

BE A PART OF THE SUCCESS, JOIN NDA ...

• • • y0u'll be in geed company.

This is your opportunity to get involved in Nevada Development the economic future of southern Nevada. Authority 3900 Paradise Rd., Suite 55 For membership information, call 791-0000. Las Vegas, Nevada 8.91 09 .. ... ---

by Russ Gardner

It comes as no surprise that certified According to Bill Zideck, executive fmancial information, Nevada State Trea­ public accountants (CPAs) are being rec­ director of the Nevada State Board of surer Bob Seale believes that objectivity ognized as more than just bean counters. Accountancy, the tougher educational and is the strength and responsibility of a Their role has expanded from that of ex­ experience requirements tend to make CPA. He said CPAs have the ability to pertly preparing financial statements and Nevada one of the most difficult states in make observations and suggestions from tax returns to providing valuable personal which to get a certificate. A fact which a different point of view. CPAs can help and business advice as well. Leland Pace, partner at Stewart, Archi­ business owners gain new perspectives In Nevada, this role change has been bald & Barney, cites as why the state's with regard to finances, he said. amplified by the tremendous growth over CPAs are among the best in the country. Judy May, director of internal audit at the last decade. The growing population Qualifications are important when you Sierra Pacific Power Company, feels that has brought with it a diverse cross-sec­ consider that accounting is more of an art a CPA's natural analytical skills can bring tion of businesses and individuals that bound by laws, than an exact science, valuable added insight to running a suc­ continue to impact the state's infrastruc­ according to Randy Walker, a sole pro­ cessful business. Beers agreed, saying ture and economy. As a result of a num­ prietor CPA. And the art of putting that the "expertise of a seasoned CPA cul­ ber of factors, the state's CPA profession information together for owners and minates in his or her ability to be an ef­ is uniquely equipped to serve this evolv­ investors is going to gain more signifi­ fective management consultant. This kind ing business community. cance for those who compile the financial of expertise cannot be gained from a book One such factor can be found in the fact information, adds Robert Beers, president or a classroom but can only come from that Nevada has one of the most stringent of Wilson, Beers & Edwards. working with businesses and observing licensing procedures in the United States. Because of the importance placed on how they operate."

18 Nevada Business journal • janu ary 1995 Ray Moberg, partner at Ernst & Young by textbook examples, CPAs are needed and president of the Nevada Society of to establish and enforce internal controls CPAs, says the CPA's role has changed that will protect the company, its share­ mac from the traditional tax preparer and au­ holders and customers while still allow­ ditor to becoming more involved as a ing the business to be dynamic by reduc­ Printing business advisor in a wide variety of ar­ ing costs and increasing profits - all eas including structuring deals, raising without sacrificing customer service." capital, enhancing accounting and report­ "The increased need for dynamics in 7350 Prairie Falcon Road ing systems and instituting employee business," Vogler said, "has placed a great Las Vegas, NV 89128 compensation and benefit plans. deal of emphasis on diversification in all Betty Vogler, shareholder at Barnard, areas of business. It has caused U.S. com­ 702-255-1211 Fax 702-255-4361 Vogler & Co., added that more requests panies to look overseas for new markets. are being made for CPAs to serve as con­ As a result there is a growing need for sultants with respect to litigation support, knowledge of international accounting ~\\\.e forensic accounting, business valuation, and tax matters," she said. )\)s\. • ~\.e~ \ mergers and acquisitions. Although, Mills added, "There is go­ Walker notes the criteria business own­ ing to be a standardization around the ~e~e~e~ ~~~· ers use when choosing a CPA vary world regarding accounting. All nations ~~e~ ~ff~ according to the specific needs and char­ are going to have to work to develop an -..~~ \) We are acteristics of the business itself. A large accounting system that is consistent in accounting firm can provide the client a order for international lending and busi­ o~- a full service variety of expert opinions. Indeed, the ness transactions to be effective." printer with state of the team approach works well for many firms According to May, present-day busi­ with complex, multi-faceted financial nesses must stay "lean and mean" to re­ art equipment in our Graphics, operations. "On the other hand," said main profitable. In the typical downsized Walker, "a CPA who operates as a sole business of the '90s, each department Web, Sheetfed, Bindery and proprietor offers the ability to develop a must justify its e:Xistence with relation to close working relationship with his or her the bottom line. Functions which can be Pre-Press Departments. client. Within such a relationship, the more efficiently performed by an indi­ CPA gains valuable insight to all facets vidual or entity outside the company are of the client's operation." normally contracted out, she said. Seale noted that much of Nevada's Moberg feels that the attitude in the mac growth has been attributable to the in­ business community is one of guarded creasing numbers of small businesses optimism. He said, "Many members of DELIVERS who either relocate, expand, or choose to the business community believe the con­ start up here. And, Vogler remarked, servative swing of the recent elections Come by or call one of our "This expanding small business environ­ may produce legislation to lessen govern­ ment has placed many CPAs in a role as ment regulation, lower taxes and stimu­ account representatives more of an outside controller, helping cli­ late economic growth." ents understand options and serving in the Regardless of the market's attitude, and find out why we are capacity of a financial officer." new laws continue to be implemented. one of the largest printers This growing role on the part of the And despite the CPA profession's desire CPA is vital for successful business be­ for less regulation, the self-regulated in­ in the southwest, printing cause as John Mills, professor at the Uni­ dustry has welcomed some new laws. As versity of Nevada observed, "The man­ Mills explained, the new laws make a over 1 billion pieces per year. agement function is to make the company CPA more valuable in terms of skills and look as good as possible, while the CPA capabilities. Vogler agrees, "The new MemberNAPL provides the balance on accounting ap­ laws have given CPAs a great opportu­ WMBE proaches to provide fair reporting." May nity to better serve clients by doing more CPUC added that, "Since you are not working intricate tax and financial planning."

January 1995 • Nevada Business journal 19 The CPA- A changing role AMERicA's #1 in changing times

Among the recent legislative changes, SBA LENDER which members of the profession see as most significant, is the 150-hour bacca­ THE MONEY STORE INVESTMENT CORPORATION believes that fast laureate requirement (effective January 1, moving, growth oriented businesses should be supported when 2001) which new CPAs will be required expansion requires the aquisition and/or construction of new to obtain before they can become certi­ facilities . We provide fully amortized loans to owner-users for fied. Another involves proposed legisla­ commercial real estate, working capital or equipment. tion to enable CPA firms organize as lim­ ited liability companies or partnerships. • Loans up to $1.250,000 • Up to 25 year terms Other major changes to the profession • High Loan-to-Value • o prepayment penalty have occurred on the technological front. • No balloons • Refinance Mills stated that the shift from the add­ ing machine to the computer has given the CPA more time to communicate with Reno • Donna Rutherford Las Vegas • Russ Torge clients and analyze their needs - a shift (702) 333-6727 (702) 221-1994 which has encouraged small businesses to depend more heavily on the CPA as a consultant. Patty Braganza, auditor II for Clark County, added that because of this reliance,-- the CPA is now responsible to not only know about new technology but to recommend its use as well. Beers emphasized this shift toward a higher level of customer service involves more than technological consultation. COUNTRY CPAs and their clients can also put new Our Breakfast technology to use to enhance the effi­ Lunch ciency and performance of the relation­ Family ... ship itself. With recent advances, options Dinner such as tele-commuting and electronic Catering security will soon be commonplace. Another way, according to Pace, in which CPAs have expanded service is through the use of electronic data process­ ing, which can make marketing, account­ ing and operational functions virtually paperless. In addition, with the use of multi-media and high-resolution graph­ ics, this information is becoming ever­ 1401 s. Rainbow Blvd. more user-friendly. Las vegas, NV 89102 No matter where you are in the infor­ (702) 254-0521 mation chain, Beers feels that all busi­ 2425 E. Desert Inn Rd. nesses will be impacted by the Internet. Las Vegas, NV 89121 Offices in one city can now use the Inter­ (702) 731-5035 net to send data to a remote office. He notes, "The information explosion is 1990 W. SLIDSet Rd. making the world smaller and allowing Henderson, NV 89014 (702) 898-8183 business relationships to exchange infor­ mation across geographical and political boundaries never before imagined." •

20 Nevada Business journal • January 1995 • • •

Demographics - Construction - Transportation - Retail Sales -

Education - Tourism - Office Space - Libraries - Utilities -

Services- Lifestyle- Population- Healthcare- Newcomers

- Employment - Recreation - Finances - Museums -

Major Employers - Shopping Centers - Convention

Facilities - Trends -Revenue- Future Plans- Hotels

- Residential - Commerce - Industry - Exports -

Culture - Taxes - Wages - Growth - Business

- Cost of Living - Community - Vital Statistics

-Special Events- Zip Code Profiles- AND MORE!

• • • • your VIew o ou em eva '-"L'-"L

never be t e sam •

Quantities are limited! Order your 1994 Las Vegas Perspective video and book TODAY! VIDEO $16 BOO!( $25 Prices incude tax. For more information, or to place an order, write to: METROPOLITAN RESEARCH ASSOCIATION • 3900 Paradise Rd, Suite 155 • Las Vegas, N\ Or call Nevada Development Authority: 702-791-0000 was enough. She stated that he should purchase life insurance to protect her in Insuring Your Future case he died and she was left with the business. "lfl died, she would have to pay the bills for the business, and we really don't know if the business would con­ Insurance experts estimate 90 percent tinue without me," Ballard said. Ballard's next goal is to obtain disabil­ of small businesses are underinsured. ity insurance to further protect his ftrm. Business experts say Ballard's dilemma Don't fall prey to this common oversight. about how much insurance is needed to protect his business is common among entrepreneurs with growing operations. by Tom Dye "Most businesses have some sort of liability coverage," said Michael Lantz, who is the partner in charge of Stewart, When Mike Ballard opened his small Archibald & Barney's business consult­ public relations firm in July 1992, insur­ ing services, based in Las Vegas. ance was among the least of his concerns. But Laptz also estimates about 90 per-. Ballard entered the business arena with cent of small businesses are underinsured. a plethora of ideas on how to attract cli­ Small businesses have the capability to ents and make money. His primary wor­ cover every conceivable risk, he said. ries involved ftnding the right employees, However, entrepreneurs should examine purchasing a computer system, and gen­ their operation to determine the most im­ erating enough cash flow to pay the bills. portant risks faced by their businesses. But like many successful entrepre­ Business owners should take out liabil­ neurs, Ballard began to expand. As his ity insurance on products that have po­ operation grew, he became aware of the tential hazards, and they should also pro­ pressing need to protect his investment. tect valuable equipment or inventory. One of his first insurance moves was Owners also should consider what to buy additional car insurance to insure other hazards may be involved in the op­ his vehicle for business, as well as per­ eration of the business when determining sonal use. However, other than this, over their liability coverage. Lantz said that the next two years he added very little many entrepreneurs find themselves in coverage for the business as a whole. financial straits because of lawsuits by His firm , the Ballard Marketing Group, Mike Ballard employees or customers. was originally operated out of his home. The cost of insurance must be taken He later moved the company to a busi­ "You probably don't spend adequate into account, of course. Ballard said the ness "incubator" facility that provided time figuring out your insurance needs," premiums for protecting his company amenities such as secretarial services, he said. "You don't really start thinking have soared to about $3,000 annually and computer equipment and insurance cov­ about insurance until you need to." have forced him to raise prices. erage. In February of 1994, the firm fi­ After moving into the new facility, Entrepreneurs are advised to shop for nally moved into an office building with Ballard purchased a $2 million "um­ good coverage, but Lantz warns against a lease that required property and casu­ brella" insurance policy that included sev­ choosing policies because they are cheap. alty insurance coverage. eral types of coverage from personal "There are a lot of fly-by-night (insur­ By this time, Ballard had expanded injuries on the premises to proiection for ance) companies," said Lantz who ad­ from a one-man operation to a firm with fire damage and equipment damage. He vises entrepreneurs to pick solid insurers four full-time and three part-time employ­ also purchased protection in case his even if they have to pay higher premiums. ees. Ballard had also acquired a computer documents were lost. Business advisers recommend calling system apd other equipment. Ballard's wife, Robin, didn't think this the Nevada Insurance Department at 456-

22 Nevada Business journal • january 199; CERTIFIED BY When assessing the risk their compa­ nies take, business owners should enact "STATE BOARD OF POST SECONDARY EDUCATION"" preventative measures in addition to tak­ ing out insurance, Lantz said. PC & MACINTOSH TRAINING Installing burglar alarm systems, as well as sprinkler systems to extinguish DOS · EXCEL - WORDPERFECT - dBASE fires, can help entrepreneurs cut risks. WINDOWS - LOTUS - MS CERTIFIED CLASSES

The value of a business is not always NOVELL CNA. CNE, ECNE TRACTS in its tangible assets, Lantz said. The "OVER 230 SOFTWARE APPLICATIONS" knowledge, expertise and resourcefulness of its principals and employees are often HANDS-ON CLASSES the key to its success. ON-SITE TRAINING Lantz said that a business can take out CLUB MEMBERSHIPS life insurance on the partners in the firm FREE 24-HR TECH SUPPORT so that if one of them dies, money will be available in case the operation suffers (702) 364-5551 or fails because of the loss. HERMAN PHILLIPS A !Jusiness also can insure the life of a ACCOUNT EXECUTIVE valuable employee for the same reason. Michael Lantz The money can be used to keep the busi­ 3100 WEST SAHARA, SUITE 108 ness going while a replacement is found. 44-S VEGAS, NV. 89102 4009 or 1-800-992-0900 to learn if an in­ Entrepreneurs should also consider dis­ surance firm is licensed with the state. ability insurance that would pay overhead Insurance companies are rated accord­ costs for a year or more if they should ing to their reliability and performance. become incapacitated. Ask The People Those seeking insurance company ratings Business people should consider pur­ Who ~ - should phone Standard & Poor's Corp. at chasing "umbrella" insurance which Know .. 415-765-5000 or A.M. Best Co. at 1-900- wraps several typ,es of insurance into one OUR FRANCHISEES! 420-0400 to check on ratings before mak­ policy, said Mark Brandt, spokesman for ing a final decision regarding insurance. State Farm Insurance Cos. 'W•ve been in the businessfouryears Business experts advise entrepreneurs However, doctors who require mal­ and now have three to find a good insurance expert, broker practice insurance coverage and other offices in the Austin, or agent who can provide knowledgeable Texas, area. We still businesses with specialized insurance believe Express offers expertise. Fledgling entrepreneurs are needs should go to companies that fea­ the bestfranchising advised to cultivate a team of experts who ture that type of coverage. They can ob­ plan for the per­ SO/lllel business. can help them on a wide variety of prob­ tain malpractice policies to complement -Linda and Keven lems from insurance to legal problems, their comprehensive umbrella policies. and how to organize finances. State Farm offers a business policy that A full-service employment fran­ Business owners should consult on in­ insures buildings and other facilities. It chisor, Express invites you to call any of more than 220 franchisees. surance at least annually to determine if insures documents and has an option for They'll tell you what you need to more insurance is needed, he said. coverage in case employee dishonesty know about Express success. With Horror stories about underinsured busi­ results in legal action against the com­ low franchise fees, prime areas nesses abound. Lantz recalls a business pany. The policy also has options to al­ are still available. If the temporary that nearly failed because of a fire that low for increased liability in other areas. help industry interests you, call for destroyed much of the operation. The State Farm also has a similar policy for the franchise nearest you or for owner was unable to replace inventory owners of apartment buildings which fea­ an information packet. and facilities because his insurance com­ tures an option to protect business own­ Call the Franchising Department pany did not live up to its obligations. ers in case new building codes require 1-800-652-6400 Many companies have been ruined by expensive modifications to buildings. embezzlement, he said. Employee-theft "Our policies arc flexible, and can be insurance is a precaution entrepreneurs tailored to the needs of the business would do well to consider. owner," Brandt said. • OUTDOOR ADVERTISING ••• Contractor's License # 10581 SPEAKING FOR NEVADA

The Changing Face of Nevada's Gaming and Hospitality Industries

by Van V. Heffner, Providing over 45 percent of the jobs President, in the Silver State, the hospitality Nevada Hotel & Motel Association industry and the Nevada Hotel & Motel Association (NH&MA) work closely The worldwide maturation of the with every level of government to gaming and hospitality industries has promote and protect industry interests. cast Nevada onto center stage. New Hotel-casino and motel owners and gaming venues are being considered operators monitor legislation and throughout the United States and across provide testimony on behalf of tourism the globe. These new sites offer our and hospitality. gaming companies opportunities to With the convening of a newly­ enter diverse markets with new products elected Republican-majority Congress and entertainment experiences. in 1995, the NH&MA will p~rticipate in Often, governments see gaming as industry-relevant issues. Healthcare a source of revenue to support budget reform will be revisited with a revised requirements. Various groups, privi­ agenda. Tax fairness will be addressed leged by heritage, seek to develop with an attempt to restore the total gaming as a source of economic deductibility of business meals and development. Gaming laws and entertainment for our patrons. Telecom­ policies are ever-changing, offering munication and tourism concerns will new opportunities and possibilities MGM Grand's EFX will feature the be debated to upgrade service and for the industry. internationally acclaimed Michael ensure the continued growth of Memories of yesteryear in the Silver Crawford. This spectacular joins the Nevada's businesses. State are faded . Now, we enter a new other world class entertainment offer­ For the first time in history, President era, where technological development ings such as Mystere, Starlight Express, Clinton will convene a "White House has advanced the gaming experience to Splash, Legends In Concert, Siegfried Conference on Travel & Tourism" in a space-age level. The ubiquitous and Roy, star-studded headliners and October 1995. This will assemble the computer chip, ever smaller and more other productions throughout the state. diverse and multifaceted leadership of powerful, continues to offer hotel guests The allure of Nevada goes far beyond the industry, while simultaneously and operators additional benefits, the neon. Other attractions offer family offering an international venue to tell entertainment options and revenue entertainment. In Reno, the National the world America's tourism story. opportunities. Bowling Stadium will open soon. In Las Nevada's communities and the Tourists travel from throughout the Vegas, family attractions such as the gaming industry are faced with many world to every part of Nevada. They Mountasia Family Funcenter, FunTaz­ opportunities and challenges as we visit our casinos, theme and amusement mic family fun center, Circus Circus' prepare for the next millennium. parks, restaurants, showrooms and Grand Slam Canyon, MGM Grand's Growth, energy, water, infrastructure, family game centers. They also tour Theme Park and others, abound. Even the environment, new residents and state parks, lakes and cultural centers. southern Nevada's stateline now offers transportation are all part of the vision Nevada's varied selection of resort a world class roller coaster. for tomorrow. properties offers visitors a wide variety Tourism in Nevada has no language As the president of the Nevada of exciting choices, both new and or cultural boundaries. More than 80 Hotel & Motel Association, I am traditional. different languages and dialects are personally committed to working In the entertainment department, spoken by industry employees. This towards the goal of creating pro evada has no peers. One innovative cultural awareness helps international for the state's hospitality indus stage production will soon be unveiled: guests feel comfortable and welcome. Nevada's citizens.

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Need a Solid Business Partner? Look to a CPA

by Sharon Uithoven, Nevada Society of CPAs Excecutive Director, Nevada Society of The Nevada Society of CP As Certified Public Accountants (NSCPA) is the statewide professional organization dedicated to promoting If you are a small business owner or and maintaining high professional manager, then you probably already standards in the field of accounting. The appreciate the contributions profession­ society, which currently serves more als can make to your success. Some­ than l ,200 members in four chapters times, it is not possible, or even throughout Nevada, provides members desirable, to take care of every aspect of with information, education and running your business. If you are opportunities to stay competitive in considering going into business, then today's business environment. CPAs you may soon find that early consulta­ who are members of the American tion with these experts can be an Institute of CPAs and employed in important investment in your public practice, are required to partici­ company's future. Using the services of pate in a practice-monitoring program, a certified public accountant (CPA) administered by the NSCPA, to allows you the freedom to take care of maintain and improve the quality of the business itself, instead of the their accounting and auditing services. innumerable financial details that can This unique requirement ensures that consume your time, particularly in light examination, experience requirements, CP As are up-to-date on current tech­ of continually changing tax laws. and more. CP As must also complete niques, procedures and standards. CP As are uniquely qualified to many hours of continuing education Successful completion of a practice­ provide the financial and business programs each year to retain a license to monitoring review program provides expertise to successfully operate your practice. They follow a code of conduct the client with reasonable assurance that company. From providing traditional -one of the most exacting of any the work done by the CPA firm can be auditing and tax preparation services, to profession - which stresses indepen­ relied upon when making business or serving as a management, business and dence, integrity, objectivity, technical personal financial decisions. even a computer consultant, a CPA can competence and adherence to profes­ By working through the many be your most valuable asset. Many sional standards. When you talk to a committees of the NSCPA, members CP As specialize in particular fields or CPA, you can feel confident about the enhance not only their career potential, industries. These specialists can be an source of your advice. He or she can be but also play an active part in the important resource, helping you to your best, impartial business advocate. direction of their own profession. avoid costly mistakes, and more Some of the services a CPA can NSCPA members develop and partici­ importantly, advising you of significant provide include: conducting studies on pate in a variety of programs which tax and organizational advantages financing, inventory management, cost serve the public as well, including which can benefit your company's control, credit and collection; working expanding their role as legislative financial position. with attorneys and bankers. in business advocates at both the state and federal mergers and expansions; auditing level. They offer their expertise, Why Choose a CPA? financial statements and reporting on sometimes through direct testimony, CP As are licensed and regulated by a them for use with investors, creditors, enabling lawmakers to better judge the state regulatory board. They must meet management and others; and assisting effects particular bills might have. stringent licensing requirements, which securing loans and credit by gathering For more information on the Nevada include a college degree, successful the information required by your Society of Certified Public Accountants, completion of a rigorous two-day lending agency. contact them in Reno at 826-6800. •

january 1995 • Nevada Business journal 27 BUSINESS PROFILE

Award-winning UNIGLOBE travel franchise celebrates expansion

by Kathleen Foley

U NIGLOBE Commercial & Leisure budget guidelines through a Travel of Las Vegas (formerly known as "Being on call 24 hours a system to prevent employees from UNIGLOBE Tony Pitch Travel) recently spending their travel allowance won three top awards at the annual prior authorization. Corporate car conference of UNIGLOBE's Southwest day is a very important part and hotel rates are arranged thro _­ region: Highest Percentage Growth, worldwide buying power of the Manager of the Year (awarded to Mary of my business, and I take it GLOBE network, so that even a Romero) and Agency of the Year, among company might enjoy lower rates the 88 companies in the region. The UNI­ seriously. It's my job to be many large corporations receive. GLOBE travel network contains over UNIGLOBE Commercial & 1,100 independently-owned franchises accountable to my clients." Travel also provides convention throughout the world. not only for local business people Robin Klaholz, president of UNI­ ing out-of-state, but also for GLOBE Commercial & Leisure Travel, Klaholz believes the public has two attending conventions in Las Vega5.. attributes her agency's phenomenal suc­ misconceptions about the travel indus­ company was recently selected cess to its ability to understand the com­ try, "People believe travel agents charge exclusive agency in the U.S. for the petitive needs of the small- and medium­ a fee, and they assume the vacation they World Harness Racing Confer size companies which represent the bulk want costs more than they can afford." be held in Las Vegas this spring of its business. Her staff of trained professionals works According to Robin Klaholz. "Because we are part of the world's with individuals as well as small busi­ advantage of UNIGLOBE's fr,.l.,...... llllllll largest travel franchisor," she states, "we nesses to help them get the services they system is that it can provide the can provide the purchasing power of an need while staying within their budget. alized service of a small company. international corporation, with the per­ Both offices are staffed by certified travel than receiving a recorded message sonalized service of a small company." consultants w,ho have undergone a spe­ calling after hours, a traveler can The agency provides travel counsel and cial two-year intensive travel education to a consultant on UNIGLOBE ticketing services for both business and program. Klaholz states this gives them free 24-hour phone service, whic leisure travel, as well as convention and "elite status" as travel professionals. computer links to all the agencies group travel-planning. Part of UNIGLOBE' s success story is franchise network. But if the Because of its award-winning growth based on its ability to provide small busi­ cannot be solved there, the rate, UNIGLOBE has recently opened a nesses with services and prices that other franchise owner is available, second office in Las Vegas, located at travel agencies reserve for blue-chip home, or on the road by pager. The Crossing Business Center in Sum­ accounts like Fortune 500 firms. "If you my phone rings day or night," she merlin. Robin Klaholz explains that she buy a ticket from here to Phoenix you "I'm there to answer it. Being on wanted to provide Summerlin residents get the same service as someone going hours a day is a very important and businesses with another alternative around the world. Your company's travel my business, and I take it seriousl. to travel services, and she is enthusiastic budget may be only $5,000 a year, but my job to be accountable to my about the potential market in the Sum­ we don't discriminate on the basis of UNIGLOBE Commercial & merlin area. While retirees in the Sun your travel budget," states Robin Klaholz. Travel has been under its present City neighborhood provide a good mar­ "These services include emergency tick­ ship since 1986, and has been OoLLu..-­ ket for leisure travel, including cruises eting, a 24-hour toll-free number, lost with UNIGLOBE since 1991. and group tours, many businesses are luggage control and international rate ser­ GLOBE Travel (International) In . also expanding into Summerlin. UNI­ vices. An executive message service can founded in 1980 in Vancouver, GLOBE's convenient location in The provide a communications link between Columbia by U. Gary Charlwooc... Crossing Business Center provides on­ the traveler and his or her home office chief executive officer and major site travel services for the businesses lo­ after regular business hours." holder, who was named "1991 F ni'T?"'"­ cated in the center, as well as serving the Business clients receive computerized neur of the Year" by the leisure travel needs of their employees. management reports, and can set up travel Franchise Association.

28 Nevada Business journal • January 199; EXECUTIVE SUCCESS

Sierra Pacific Resources and Walter M. Higgins Profile of a merger and a man

by Debra Lynn Deming

Walter M. Higgins, who joined Sierra trition management" policy to reduce an Pacific Resources as president and chief estimated 300 administrative positions operating officer, on November 1, 1993, from the labor force of 3,300. The com­ was appointed two months later, to the pany will not be filling jobs that nat]J­ position of chairman and chief execu­ rally come vacant. "Though some of our tive. Higgins, 49, a graduate of the U.S. employees have been asked to carry an Naval Academy, served as a command­ extra load, we have saved 30 to 50 job ing officer in nuclear submarines and later vacancies that have already occurred as a nuclear engineer. He came to Sierra naturally," said Higgins. Pacific with an additional 20 years' ex­ "We are also planning to retrain and perience with various utility companies. redeploy many of our employees to bet­ In assessing the strengths and weak­ ter fit the new company. Those being nesses of Sierra Pacific, Higgins spent asked to leave, have been, and will be several months putting together a strate­ given, attractive incentives, such as vol­ gic plan designed to strengthen Sierra untary severance programs and early Pacific in every way. The merger with retiremel'lt packages." Washington Water Power (WWP) is the Higgins said they realize that 95 per­ keystone of that strategy. cent of what it takes to successfully run Higgins is familiar with WWP, and this business is in the heads of the em­ believes the utility has proven successful Walter M. Higgins ployees. Therefore, "transition teams" at handling many of the challenges now have been selected. "The job of these facing Sierra Pacific, a small company merger access to plentiful, low-cost teams is to put together the best ideas in a rapidly growing market. hydropower and natural gas in the Pa­ from both companies, and even steal Higgins approached WWP and found, cific Northwest and Canada. Sierra Pa­ some good ideas from other companies, "a willing ally who shared my view of cific is able to provide access to the Cali­ as well," said Higgins. "In essence, their the world. We both wanted to hold costs fornia market and to the rapidly growing job is to create the new company." down and win our customers' loyalty. markets in the Southwest. Washington Water Power just finished Also, foremost for both of our compa­ Intention to merge, was announced a state-of-the-art customer information nies, we wanted to retain our local, June 28, 1994. The new company will system, which will increase the speed smaller-town identity and character. be called Resources West Energy Cor­ and efficiency of service delivered to their "Washington Water Power is perhaps poration. Paul Redmond, 59, will become customers. Higgins plans to tap into their the leading utility in the U.S. in its abil­ chairman and CEO. Higgins will be vice system. "We'll duplicate it here in Ne­ ity to be ahead of trends in cost con­ chairman, president and chief operating vada without having to spend the money trols," said Higgins. officer until1999, when he will become to reinvent a system for ourselves." Utility companies are preparing for a chief executive and Redmond will con­ Higgins said this was an example of new competitive era, expecting that tinue as chairman. the advantages of the merger. "We are changes in regulations will result in the Sierra Pacific shareholders will receive creating a learning company, committed end of regional monopolies. 1.44 common shares in Resources West to doing it better. Higgins expects customers will have a Energy Corporation for each common "The future holds many uncertainties," choice of utility companies, especially share of Sierra Pacific, and Washington said Higgins. "In fact, in October, Citi­ larger companies, and believes by merg­ Water Power Shareholders will receive zens Utilities Company of Stamford, ing with WWP, Sierra Pacific is posi­ one Resources West Energy Corporation Connecticut, who services 1.3 million tioning itself, not only to survive, but share for one common share in WWP. customers in 16 states, tried to intervene also to thrive in the new era. Even positive changes can be diffi­ in the merger by trying to purchase stock WWP's Spokane location brings to the cult, and Higgins has an "aggressive at- or assets of Sierra Pacific Power. How-

Janu ary 1995 • Nevada Business journal 29 Based on recent totals, the new

corporation, once completed,

will serve 532,000 electric

customers, 290,000 natural

gas customers and 66,000

water customers in five states.

ever, the merger plans continued and the states' Public Service Commissions di'cl not allo z;., Citizens Utilities to intervene. The company believes the merger will net a cost savings of $450 million in the first 10 years. Both companies are pro­ posing to institute a base-rate freeze, plus a moratorium on planned increases, in every state the company serves. Excep­ VINTAGE, INC. tions, of course, would include increases GENERAL CONTRACTORS in fuel costs and other expenses outside the control of Resources West Energy. (702) 454-1797 Cost savings provided by this strategic Henderson, Nevada combination include: reduced reserve ca­ pacity requirements; an enhanced ability to make wholesale power sales to other NO SURPRISES utilities; reduced administrative costs; We work with you, increased buying power; greater diver­ we simply don't sity of efficient and environmentally sound electric generating resources; in­ allow misunder­ creased economic, weather and load di­ standings. versity. Based on recent totals, the new cor­ poration, once completed, will serve 532,000 electric customers, 290,000 natu­ TOTAL CONTROL ral gas customers and 66,000 water cus­ It's your tomers in five states. Added together, the revenues of the building, two companies totaled about $1.2 billion you'll get what in 1993, wi th net income of $120 billion and assets of $3.4 billion. The process, you want. which is on schedule, is expected to be NV Lie. #31358 completed in late 1995. •

30 Nevada Business Journal • January 199; by Carol Vilardo

When evaluating whether A Taxing Question: general revenues are keeping Does growth pay for itself? pace with growth, it is important to examine both sides of the equation. More often than not, The discussion of growth in the Silver doing fine. It is the expenditure side that State has been fueled by two reports: the is out of whack. Simply stated; the spend­ 1990 Census and the 1991 Arthur Ander­ ers want to spend at a greater level than when revenues seem to fall son study, The Fiscal Impact of Popula­ the increasein population and inflation. tion Growth in Nevada. Expenditures are controllable; policy The highly publicized Census Report makers, elected representatives, local short, it is because expenditures showed Nevada grew faster than any governing boards and the legislature, can other state in the nation. -and should - limit expenditures. The Anderson study underscores the To show that Nevada's general tax rev­ should be curtailed - not growth. impact of this gr.owth: "Spending by all enue has kept pace with increases in types of governments in Nevada ex­ population and inflation, it is necessary panded to accommodate an increased to establish a base year to track popula­ number of residents, and will have to tion and revenue growth. Unfortunately, continue to do so, if accustomed levels there will never be a consensus of opin­ of public services are to be maintained." ion on a "base year" because a "base" Unfortunately, the discussion of implies that the amount of taxes raised whether growth pays for itself has been in the "year" was optimal. Advocates of primarily limited to only one side of the spending will argue Nevada was not rais­ equation - that of expenditures. This ing enough tax revenue in any year. And, article attempts to look at the other side conversely, taxpayers will feel taxes were of the equation- revenues. too high in any year. Looking at the expenditure side, To evaluate and compare revenue, two growth may not appear to be paying for base years were chosen: fiscal 1978-79- itself, but one must consider additional the year before the tax shift; and fiscal factors. Policy decisions often call for 1981-82 - the year after the tax shift. increased programs that are dispropor­ In reviewing the revenue side, we have tionate to the increase in both the popu­ compared sales and property tax, the two lation and the Consumer Price Index. major taxes paid by most Nevadans. Cost-shifting, which is the direct result Another comparison considers ail gen­ of new and expanded programs mandated eral tax revenue. The comparison does by the state and federal government, often not take into account the various caps lack appropriate funding. and distribution formulas to which local The revenue side of the equation is government revenue sources are subject.

January 1995 • Nevada Business Journal 31 However, for the most Any discussion on growth must property tax revenue part, local governments was $155,401,161 for a which experience popu­ give equal weight to both combined revenue of lation growth, also ex­ $531,454,142. By perience a correspond­ 1992-93, the state's the revenue side as well as ing growth in revenue. population had in ~ Regardless of whether creased 55.54 percent the comparison base is the expenditure side. Not to and the CPI had 1978-79 or 1981-82, or gained 48.56 percent. whether only sales and do so is D disservice to the Applying population property taxes or all gen­ and CPI increases eral tax revenue is con­ tDxpDyers who, one way or to the 1981-82 com­ sidered, revenues have bined property and sales been greater than the the other, pay the final bill. tax revenue yields growth in population $1,251,7_18,000 for and inflation. 1992-93, if the tax rate had grown only as fast ' COMPARING 1978-79 TO 1992-93 as the rat ~ s of growth for population and· Sales and Property Taxes- In 1978- inflation over this period of time. 79 - before the tax shift - Nevada state Actual revenue from combined prop­ and local governments received, in com­ erty and sales tax was $1,758,751,000 or bined revenue from sales and property about $507 million greater than growth taxes, $427,653,402. due to population and inflation. By 1992-93, Nevada's population had All General Revenue - Total general increased 81.96 percent and the Con­ revenue for 1981-82 was $771,976,000. sumer Price Index (CPI) had increased Applying the same population and CPI 99.31 percent. Applying these increases increase would have resulted in total gen­ against the 1978-79 combined property eral revenue of $1,818,212,000 being re­ and sales tax revenue, the yield in the ceived in 1992-93. Actual 1992-93 total combined property and sales tax revenue general revenue was $2,240,259,000 or would be $1,550,946,969. about $672 million more than the growth Actual property and sales tax receipts due to population and inflation increases. for 1992-93 were $1,758,751,000 - ap­ Regardless of whether the base year is proximately $200 million more than the 1978-79 or 1981-82, or whether only actual growth attributable to population sales and property taxes or all tax rev­ and inflation. enue is considered, the revenues raised All General Revenue - Total general (taxes paid) have been substantially revenue for 1978-79 was $609,365,000. greater than the corresponding growth in Applying the same increase for popula­ population and inflation. tion and the CPI results in a total general It therefore becomes obvious that any revenue of $2,209,950,000 - approxi­ discussion on growth must give equal mately $280 million more than actual weight to both the revenue side as well growth due to population and inflation. as the expenditure side. Not to do so is a disservice to the taxpayers who, one way COMPARING 1981·82 TO 1992·93 or the other, pay the final bill. • Sales and Property Taxes - From 1981-82 to 1992-93 -after the tax shift ­ Carole Vilai·do is president of the Nevada sales tax revenue was $376,052,981 and Taxpayers Association.

32 Nevada Business journal • january 1995 ITALIAN RESTAURANT People on AND LOUNGE the Move WORLD REKNOWN OSSO IUCO • FRESH SEAFOOD DISHES NIGHTLY IRT Of TME IIUT PIANO BAR RESERVATIONS RECOMMENDED I STAR DIAMOND AWARD Marc Grossman, for­ NIGHTLY merly vice-president of EES• ICI:f ti41CI•I•I corporate affairs at DINNER 1900 W. FLAMINGO RD. Hilton Hotels Corpora­ 5 ·10:30 7 DAYS (2 MILES FROM ON FLAMINGO) tion, was recently ap­ pointed to the position of Marc Grossman senior vice-president. A veteran of public relations, Grossman has been with Hilton since 1992. Hilton has also announced the retire­ ment of Ronald L. Hughes, president of the Reno Hilton, after a 37-year career The Center for Business and Economic Research with the company. He is replaced by 4505 Maryland Parkway • Box 456002 Las Vegas, Nevada 89154-6002 Ferenc Szony, who was serving as (702) 895-3191 • FAX: (702) 895-3606 president of the Flamingo Hilton-Reno. And, most recently serving as vice presi­ New Releases dent and general manager of the Las Ve­ gas Hilton, Christopher W. Nordling The Southern Nevada Business Directory: 1994 becomes the new president of the Fla­ provides information on f:trms located in Southern mingo Hilton-Reno. Nevada. Businesses are listed by Standard Industrial Classification (SIC) and alphabetically. Sahara Gaming Corpora­ Price: $75.00 plus $5.00 for shipping and handling tion recently appointed Tim Maland as general The Historical Perspective of Southern Nevada: manager of the Santa Fe 1969-1993 includes historical data on the Las Vegas Hotel & Casino. Maland economy. Data include characteristics of Southern has held positions with Tim Maland Nevada's population, building permits, gaming ITT Sheraton, Trump revenue, visitor volume, and other key economic Plaza Hotel & Casino and Ramada, Inc. indicators. Chantelle Waugh has joined the Price: $15.00 plus $3. 00 for shipping and hancliing Santa Fe Hotel & Casino as vice presi­ dent of human resources. Paul Vantine is now vice president of finance. Joseph Corradino has been appointed vice president of casino operations for the Santa Fe. John Sou was promoted to vice president of food and beverage LEARN PRACTICAL SELF DEFENSE operations at the Santa Fe.

The Tropicana Hotel and Casino ap­ pointed Mike Musicaro as the new vice president of sales and marketing. Musicaro previously was director of casino marketing administration at TropWorld Casino and Entertainment Resort in Atlantic City for five years. He has been at the Tropicana since 1991. • LATEST PREVIOUS YEAR CHANGE DATE UNITS PERIOD PERIOD AGO YRAGO UNEMPLOYMENT Nevada September, 1994 seasonally adj. 5.7 6.1 7.4 -22.97% Las Vegas September, 1994 % 6.5 6.3 7.7 -15.58% Reno September, 1994 % 5 .0 5.1 6.2 -19.35% U.S. September, 1994 seasonally adj. 5 .9 6 .1 6.7 -11.94% RET AIL ACTIVITY Nevada Taxable Soles July, 1994 $thousand 1,592,869 1,676,429 1,408,780 13.07% Clark County July, 1994 $ thousand 968, 104 996,342 833,479 16.15% Washoe County July, 1994 $thousand 281 , 122 300,342 265,321 5.96% U.S. Reta il Soles August, 1994 $million 186,561 185,138 174,279 7.05% GROSS GAMING REVENUE Nevada August, 1994 $thousand 589,563 627,282 527,860 11.69% Clark County August, 1994 $ thousand 440,386 474,171 378,618 16.31% Washoe County August, 1994 $thousand 84,404 85,385 86,053 -1.92% CONSTRUCTION ACTIVITY Las Vegas Area New Residences 3rd qtr 1994 #permits 4,953 5,437 4,704 5 .29% New Commercial Permits 3rd qtr 1994 #permits 169 149 129 31.01% Reno Area New Residences 2nd Holf 1993 #permits 1,469 962 684 114.77% New Commercial Permits 2nd Half 1993 #permits 53 40 40 32.50% U.S . Housing Storts August, 1994 thousand 1,402 1,413 1,319 6.29% Total Construction August, 1994 $billion 505.0 506.1 464.7 8.67% HOUSING SALES Las Vegas Area Average Sales Price Ill 3rd qtr 1994 $ 120,475 124,738 119,398 0.90% Average Cost/ Square Foot 3rd qtr 1994 $ per sq. ft . 76.9 78.51 69.73 10.28% Average Mortgage Rate 121 3rd qtr 1994 % ' 8.57 8.34 7 .31 17.24% Washoe County Average Sales Price Ill 2nd Ha lf 1993 $ 170,325 157,825 151,403 12.50% Average Cost/Square Foot 2nd Ha lf 1993 $per sq . ft . 96.88 92.42 90.18 7.43% Average Mortgage Rate 121 2nd Ha lf 1993 % 7.20 7.70 8.30 -13 .25% U.S. Home Sales August, 1994 thousand 703 641 645 8.99% TRANSPORTATION Total Passengers 131 McCarron Airport, LV 3rd qtr 1994 passengers 6,956,897 6,757,355 5,842,840 19.07% Cannon Airport, Reno 3rd qtr 1994 passengers 1,445,209 1,240,035 1,324,944 9.08% State Taxable Gasoline Sales July, 1994 thousand gal. 65,201 65,326 62,646 4.08% POPULATION ESTIMATES Nevada July, 1994 people 1,493,000 1,398,760 6.74% Clark County July, 1994 people 971 ,680 898,020 8.20% Washoe County July, 1994 people 282,630 271,770 4.00% NATIONAL ECONOMY Consumer Price Index 1•1 September, 1994 1982-84= 100 149.4 149.0 145.1 2.96% Money Supply - M 1 August, 1994 $billion 1' 151.8 1,153.6 1095.3 5.16% Prime Rote September, 1994 % 7.75 7.25 6.00 29.17% Three-Month U.S. T-Bill September, 1994 % 4.64 4.5 2.96 56.76% Gross National Product 2nd qtr 1994 $billion 6,689.9 6,574.7 6,299.9 6.19%

NOTES: (1) houses, condos, townhouses; (2) 30 yr. FHA; (3) enplaned/deplaned passengers; (4) all urban consumers SOURCES: Nevada Dept. of Taxation; Nevada Employment Security Dept.; UNLV, Center for Business and Economic Research; UNR, Bureau of Business and Economic Research; US Dept. of Commerce; US Federal Reserve. COMPILED BY: UNLV, Center for Business and Economic Research

janu ary 1995 • Nevada Business journal 35 vices by using their telephones. The Comstock Bank reports building currently houses the Nevada strong third quarter bank's Day and Night Banking Center. Clint Amoldus, chairman and chief ex­ Comstock Bank, which is based m ecutive officer of FIB said, "This center Reno and operates a loan center in Las and its state-of-the-art equipment will al­ Nevada Vegas, reported continued asset growth, low us to better serve our customers and and a net three quarter income of their telephone banking needs." $780,000, or 15 cents per share for the First Interstate will invest about $5 mil­ quarter and 50 cents for the first three lion in equipment for the center, and an­ Briefs quarters of 1994. other $3 million in capital improvement's "Overall, the bank's performance was will be made to the building, which cur­ positive," Comstock Chairman and CEO rently accommodates 42 employees. Medical facility opens in Bob Barone said. "Assets grew 19.8 per­ Larry Tuntland, northern Nevada presi­ northwest Las Vegas cent, net loans were up 40 percent, and dent of First Interstate Bank, said the deposits increased 20.3 percent over last Economic Development Authority of The recent opening of the W estcliff year's levels, by the end of September. Western Nevada played a vital role in • House Medical Complex in the master­ Much of Comstock's success stems assisting bank officials in bringing the planned community of Summerlin has from real estate lending activity, bolstered center to Reno. "We are especially ex­ helped ease the demand for medical ser­ by the loan center opened in Las Vegas, cited about Reno being selected for this vices in the rapidly growing northwest last year. Because the Las Vegas market center. It is a choice addition to our com­ section of the Las Vegas Valley. is weighted towards affordable homes munity and economy," Tuntland said. · The medical complex was developed for entry-level and moderate-income buy­ by Andrew Molasky, whose family has a ers, the market has slowed moderately, history of building premiere medical fa­ as a result of interest rate increases. Howard Hughes Corp. cilities, schools, professional complexes With that in consideration, Comstock announces new medical and shopping centers. has begun to develop new adjustable­ complex in Summerlin The Westcliff Family Practice Center, rate mortgage packages to help ftrst-time located at the complex, opened its doors and moderate.-income buyers qualify in Universal Health Services, Inc. and the last October. The 40,000-square-foot fa­ the higher rate environment. Summerlin division of the Howard cility is owned by Lake Mead Hospital Comstock Bank has assets of $91 mil­ Hughes Corporation, announced plans for Medical Center, an Ornda Healthcorp lion, a 20 percent increase from one year a major hospital, an outpatient surgery Hospital, and is being operated and man­ ago. It's stock is traded on the NASDAQ center, a diagnostic center and a medical aged by Prime Health, Inc. exchange under the symbol LODE. The complex in the community of Summerlin. Phase two of the Westcliff Family Nevada bank operates full service Universal Health Services (UHS), Practice Center will add 50,000 square branches in Reno and Carson City, and owns and operates Valley Hospital Medi­ feet of space for more physicians. has additional lending centers in Minden/ cal Center in Las Vegas. Medical specialties represented at the Gardnerville and Las Vegas. In addition to the Summerlin project, Westcliff House Medical Complex in­ UHS also plans to build a hospital in clude: internal medicine, pediatrics, car­ southwestern Las Vegas. The Valley diology, ear, nose and throat, general sur­ First Interstate selects Health Sys tem, as the new southern gery, obstetrics and gynecology, Reno for new center Nevada facilities will be known, will gastroenterology, adult and pediatric urol­ serve the rapidly expanding community ogy, opthamology, radiology, dermatol­ First Interstate Bancorp recently an­ with Valley Hospital Medical Center ogy, podiatry and plastic surgery. nounced the company has selected Reno functioning as the tertiary care center. "We are fortunate to have another fine for a company-wide, teleservicing cen­ The ftrst phase of the Summerlin com­ healthcare facility added to the medical ter. Up to 350 employees will work at plex- a 100,000-square-foot medical of­ community of Las Vegas and particu­ the center, which will process 1.5 mil­ flee building - will eventually be con­ larly serving the growing northwest area," lion telephone calls a week. nected to the hospital. An additional, stated Ernie Libman, CEO of Lake Mead The center will allow customers in 13 35,000-square-foot outpatient surgery Hospital. He said the response from the states to transfer funds between accounts, center and a diagnostic center complex neighborhood businesses and residents obtain updated information on transac­ will be in operation by the end of 1995. has been overwhelmingly positive. tions, and access dozens of other ser- The 120-bed hospital, scheduled to

36 Nevada Business journal • january 1995 open in December, 1996, will provide a while return on average common equity ductions, based on the economic envi­ full-service emergency medicine depart­ was 14.58 percent in the third quarter of ronment in our territory, and the trends ment, in-patient surgery suites, obstet­ 1993, net income was $65.8 million or prevalent during the third quarter, I am rics, cardiology, sophisticated cancer 63 cents per common share. The 1993 optimistic about top-line growth poten­ therapies, pulmonary medicine and re­ third-quarter results included $16 mil­ tial in revenues as we move forward." habilitation. The hospital will be designed lion of pretax gains on the sale of servic­ to expand to 400-beds, as needed. ing assets - net of servicing asset valua­ UHS is a hospital management com­ tion adjustments -along with $5 million Nevada's first tribally· pany, which owns and operates 15 acute­ of equity investment income. owned casino set to open care hospitals, 13 psychiatric hospitals, "Positive trends in our core operations and 17 ambulatory surgery and radiation were apparent in the third quarter. Total The Avi Hotel and Casino, Nevada'-5 therapy centers nationwide. It acts as the loans grew, credit quality improved and first tribally-owned hotel casino, is sched­ advisor to the Universal Health Realty non-interest expenses continued to de­ uled to open in Laughlin early in 1995. Income Trust, a Real Estate Investment cline," stated Gerry B. Cameron, chair­ The $47 million project will be operated Trust (NYSE:UHT). man and chief executive officer. "These by Cashell Management on behalf of the trends were reflected by an increase in Fort Mojave Indian Tribe. per-share earnings of more than 20 per­ "We've brought together an experi­ U.S. Bancorp reports cent from the previous quarter. enced team to guide the property through strong loan growth "We expect to see further declines in start-up and ongoing operation," said Bob non-interest expenses into 1995 as we Cashell, of Cashell Enterprises, Inc. U.S . Bancorp reported a net income of make additional progress on cost-cutting Members of Cashell's team, include $62.7 million, or 60 cents per common initiatives," Cameron stated. "Renewed Larry Tiller, who will be Avi's general ' share, for the third quarter of 1994. Re­ focus has been placed on revenue growth. manager, and Lowell Chichester, Cashell turn on average assets was 1.18 percent, In combination with these expense re- Management's chief financial officer.•

FURNACE CREEK INN RESORT Lighred nmways fur priwze planes available. A Magnificent Oasis In Death Valley, California. by Joe M ullich

IF YOU HIRE THEM, THEY WILL SUE

ALTHOUGH File this under, "We don't August 12. " (Good. Now if stress?" But you can't ask, make this stuff up": A Tennes- you verify seven more inci- "Does stress ever affect your federal law pro- see man, who was told by his dents you can build a case, ability to be productive?" After doctor that he suffered from hold a hearing, and ask the all, if people can be judged by hibits someone low self-esteem and depres- worker not to do it anymore, productivity, these government sion, filed a lawsuit against his although stress that you workers would be out of a job. with epilepsy employer. The man said his understand his behavior results The new guidelines point out condition was a disability from improper potty training that federal law prohibits from working as under federal law. So he so he isn't to be blamed.) someone with epilepsy from proposed that his employer, to Simply trying to give working as an interstate truck an interstate remain sensitive to his plight, someone a job is a vast legal driver. However, the guidelines never be allowed to criticize minefield. Fortunately, those say a trucking company may ' truck driver, his performance. handy folks at the U.S. Equal -not ask whether a truck drivin~ I tried to get my wife to buy Employment Opportunity applicant has epilepsy until EEOC guidelines this theory and refrain from Commission (EEOC) have after he has been offered the criticizing my performance as produced guidelines for what job. My question is, if a say a trucking well. Unfortunately, the courts questions a company can and company offers a job, then has do not feel as compelled to can't ask of job applicants. to retract it because the driver company may not intervene for couples as they The guidelines' official name has epilepsy, does the company do for workers. The philoso- is Enforcement Guidance on have to pay for the applicant's ask whether an pher Descartes once told us, "I Pre-Employment Disability- unemployment insurance? think, therefore I am." Nowa- Related Inquiries. However, My guess is, not only does applicant has days, the motto should be, "I we prefer the catchy name the company have to pay, they work, therefore I sue." given the document by an have to chauffeur him to the epilepsy until People who aren't hired, sue executive at the Society of unemployment office. Any- for being refused work. People Human Resource Manage- thing else would be heartless. after he has been who are hired, sue for being ment: "a really stupid set of The executive summary for required to work. These days, a guidelines". the guidelines goes on for 50 offered the job. supervisor is a fool to give a According to the guidelines, pages filled with tiny, loop- performance review without it's okay to ask a job applicant, hole-friendly footnotes, such getting permission from the "Do you have 20/20 correct as, "See 29 C.F.R. pt. 1630 and ACLU. A cottage industry has vision?" But you can't ask, 1630.14 (a)." But I'll spare you developed to advise companies "What is your corrected the details. I called up a person about how to avoid being sued vision?" (This is the type of at the EEOC. He said he was by employees, giving guide- thing our hard-working surprised that people were lines such as: bureaucrats spend time worry- making fun of the guidelines. I • A bad way to criticize: ing about; no wonder we don't didn't say anything because I "You do not get along with co- have a national health plan.) didn't want to get in trouble workers." (This is too vague!) You may ask a typist how with the Feds. I work alone, • A better way to criticize: he broke his arm, but not and am self-employed. But I'm "You threw Chris Smith when it will heal. sure the EEOC has some law through a window on three You may ask a job applicant, that says I should have given occasions- July 7, July 15 and "How well do you handle my job to someone else. • 38 Nevada Business journal • January 199; To the inexperienced eye, all private banking clients may appear to share the same goal.

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