The operating company of the Cal Neva Resort, Spa & Casino, NAMCAL LLC, just received a NOD on their $25,000,000 deed of trust from November 2007. There have been a lot of mechanic’s liens filed by contractors and consultants for the last year or so.
So what are you plugged in locals hearing about this? Is this a real estate issue or gaming property in distress?
inclinejj
Ouch!!
It is a tired old property. I know they got caught in a lawsuit by one of the neighbors screaming the remodle would block his view..
I know they had a plan for some condos on the site..
Bluth got tired of the TRPA and sold out..probably at the right time
Will dig some stuff up and post tomorrow
Grand Wazoo
Don’t forget – if I read the paper correctly this week, the parent company of the Reno Sands either has just missed or plans to miss a bond payment due pretty much Right Now.
Fitgeralds closed, downtown is looking even more raggity than ever. Nothing like taking a picture of the arch and see a boarded up property in the background.
My wife and I, who live close to downtown and make the walk down to a couple of favorite bars and restaurants 2-3 times most weeks, both commented the other day that the whole area, with a few notable exceptions, is going backwards in a hurry.
Anyone know how the Montage condos are appraising as the closing process begins?
BanteringBear
“My wife and I, who live close to downtown and make the walk down to a couple of favorite bars and restaurants 2-3 times most weeks, both commented the other day that the whole area, with a few notable exceptions, is going backwards in a hurry.”
I talked about this on the blog two years ago and was screamed at, called negative- you name it. The truth is, the urine soaked streets of downtown Reno have NEVER been an attractive place to call home for most people, and past attempts to revitalize it have always failed. This time it was no different. It is dying. The recent efforts had little to do with Reno itself, and everything to do with the greed of individuals, flush with credit thanks to an impossibly incompetent leadership.
It’s freaking OVER for downtown, for now. The situation is actually MUCH worse than when I parked cars during college, 16 years ago. Progress? Hah!
Karolyi
The Montage….
To the immediate south is a boarded up former liquor store.
To the immediate southeast is the failed Longs empty old casino with the weekly rentals upstairs.
To the immediate east is another old casino turned into a 20 something pickup bar.
To the immediate north is the Kings Inn remnant, the ugliest eyesore in all of Reno.
To the immediate west is the Olympic motel, built for the 1960 winter games, and a place that appears to cater to hookers and their johns by the hour.
Why wouldn’t the Montage condos appraise just fine?
Reno Ignoramus
Hey Bear, I remember that conversation very well. I expect we will have a comment by Mike from the Downtown Makeover blog any minute now.
I see that a commenter on the above thread says that the Montage is going back to the bank on December 15?? Can anybody verify that?
inclinejj
They tried to make downtown reno into downtown San Francisco or Manhattan in one boom cycle..Go downtown in San Francisco and you see alot of the old original downtown buildings and you see some built in every decade..
Too much too fast too big..Too many downtown condos
~~~~~~~~~~~~~~~~~~~~~~~~~~
I think I remember something about having to put sprinklers and fire alarms in the building after a small fire there..
Plus the Boulder Bay Project across the street is in planning..the old Tahoe Biltmore..
CommercialLender
Speaking of Cal-Neva, what about the adjacent and ever-for-sale Virginian? I understand there was a buyer a few years back who had it under LOI, but the foreign owners could not get around to approving the sale agreement. I can only imagine the buyer is very happy the deal never made, as I understand his plans were small sized condos or a condo-tel, both of which would likely have been financially disastrous. I believe the casino option is no longer viable, either, and there’s insufficient parking to turn it into an office building. Anybody know more? It and other vacant buildings really have to #### or get off the pot if any downtown revival is to occur in the future.
GreenNV
Sorry, I should have been more clear. The NOD is on the Cal Neva Resort, Spa & Casino in Crystal Bay, not the downtown Reno Property.
Sully
In answer to your question, the real estate would not have a bearing on gaming revenues – so it would be a distressed gaming property. Real estate values have little to do with gamblers coming into a casino and spending money. Casinos survive on gaming revenues not value of property.
DowntownMakeoverDude
Urine soaked streets? Oh yes it’s SO over for downtown Bantering Bear. If there is one subject I am intimately familiar with, it’s downtown Reno.
Nobody tried or is trying to make downtown Reno into Manhattan or San Francisco, people are just trying to make a vibrant downtown because a city is only as healthy as its core.
With 11 redevelopment projects underway in various stages, downtown is hardly ‘dying’. Starbucks closed in the Palladio, and another business is already taking its place. I talked with the owners of businesses at West Street Market, who continue to see good business.
Palladio is continuing to sell its remaining units. Attendance at the Reno Bighorns games is high, the Reno Aces have sold 2,300 of 3,000 season tickets already for our new baseball stadium. Thousands of college kids pack downtown every weekend to frequent the businesses there, I know because I see them on my daily walks.
The failed Longs Drugs project is nobody’s fault, the project is up in the air because Walgreens bought Longs Drugs, and they already have a presence downtown so no one knows what’s up until the acquisition is complete.
If any of you actually know Reno’s history, then you know the Fitz was doomed long before L3 closed its doors for remodelling. The parent company drained it of profits to try to save its other properties, and then it went into conservatorship for nearly a decade. Yeah THAT’s real good for downtown.
Downtown was sacrificed by several casino owners (Fitzgeralds, Horseshoe, Nevada Club, Harold’s Club etc) which led to the corporatization of the remaining casinos downtown, and THAT I believe is at the root of downtown’s problem today with casinos.
The City can’t just take the Kings Inn from its current owners when they continually make the minimum payments to keep the project off the auction block, and keep it up to code just enough to avoid condemnation by the city. Trust me, the city has TRIED to get rid of this building several times.
If you havent noticed, we’re in a recession, and that obviously affects nearly every city downtown, not just downtown Reno.
Oh, and I know EXACTLY what is going on with the Montage regarding December 15, but why would I tell any of you? You, at least in this comment thread, act like you WANT the project to fail. L3 Development has spent over $200,000,000 on this project, is doing everything in their power not to screw their buyers over, who right now are the most important peopel to them, has been in negotiation with Corus for weeks, and all you people can do is gather around in excitement waiting for the project to fail. Nice attitude!
Regarding the Virginian, I did an article on that recently and my readers came up with some pretty creative solutions as to what the building could become.
Instead of just trashing downtown and pointing out its flaws, how about some real creative solutions? You guys always go as far as trashing downtown, but then don’t offer ways to fix it or repair it. I have spent the last three years on my site doing just that, and beleive it nor not, it actually helps. So if you hate the Virginian, then talk about what could be a creative use of the building…if you hate the Kings Inn then suggest ways the city could fix the problem. Become part of the solution instead of just bitching about it. Can’t we at least once have a dicussion on what downtown could/should become instead of a constant war on what downtown currently is? Surely you guys care enough about this city to want to have a vibrant downtown right? Because if you think a metro area of nearly 400,000 shouldn’t have a healthy downtown center, you are smoking crack.
DowntownMakeoverDude
Also, it should be noted that the next two days the City Council is meeting to prioritize development projects that could be funded by President-Elect Obama’s upcoming Main Street Stimulus package, which the City will then turn into Nevada’s congressional delegation.
I’d love to hear input from Mike in particular, and others on this blog, about what projects they feel are most important. You can see a list of them here. http://www.downtownmakeover.com/MainStreetProjectList.pdf. Many of them are real-estate related. Even though we disagree on downtown, I still think the majority of commenters on this blog are smart, intelligent people 🙂 and the more people talk about this stimulus package, which could mean big things for Reno and Nevada, the better.
DowntownMakeoverDude
http://www.downtownmakeover.com/MainStreetProjectList.pdf oops bad link in previous post
RoyalFlush
Don’t take BBear to seriously – he is bearish that is his deal. He would complain if his butt was made of gold that it was too heavy.
I go downtown infrequently at best. I will say I appreciate the efforts underway to revitalize the area and have seen progress over the last 8yrs. We love arttown.
stjoe56
Re: The Montage
I got a certified letter in mid-October giving me 30-days notice of for closing on December 1, 2008.
That date came and went with no closings. I was then informally told it was 12/15. I now hear that date has been postponed. I now hear it is trying to have some closing by the end of the year.
I have heard there have been one or more appraisals that have come in at the contract price.
Given the fact that the government is now talking about subsidizing mortgages at 4.5 (?) percent only a fool would take out a mortgage now at 5 or 6 percent.
SJ
BanteringBear
DowntownMakeoverDude posted:
“Urine soaked streets? Oh yes it’s SO over for downtown Bantering Bear.”
LOL, I knew that would get you. I like it though. It’s got a nice ring to it, and it is a most accurate description of the filth the city has long struggled with. In fact, I once witnessed a bum urinating right onto the side of a hotel in BROAD DAYLIGHT on a late Sunday morning. The kicker: to their horror, about 25 hotel guests did, as well.
“If any of you actually know Reno’s history…Downtown was sacrificed by several casino owners (Fitzgeralds, Horseshoe, Nevada Club, Harold’s Club etc) which led to the corporatization of the remaining casinos downtown, and THAT I believe is at the root of downtown’s problem today with casinos.”
I’m actually quite familiar with the history of downtown, and Reno in general. Enough so that I know that Fitzgeralds, The Nevada Club, and Harold’s Club were all under the same ownership. So, out of the four clubs you just listed, there were only two owners- which hardly qualifies as several.
So, then, are you blaming the demise of downtown Reno on the Fitzgeralds group? Look, I’ve said it before Mike, I think you’re a good guy. I appreciate your enthusiasm, and the city could certainly use more people like you. But it’s going to be a long road, and the city is in reverse right now. I do like the baseball stadium, but it’s not going to, singlehandedly, turn things around.
RoyalFlush posted:
“Don’t take BBear to seriously – he is bearish that is his deal. He would complain if his butt was made of gold that it was too heavy.”
You’re right, I probably would complain. Because I wouldn’t want to have to cut my rear off to cash in. Heck yeah, I’m bearish, but it mostly has to do with employing common sense, rather than false hope and delusion. I see things for what they are. I know that million dollar condos in Reno are a pipe dream. I don’t believe in $800k barns, or city centers miraculously revived in a bubble. I’m a voice of reason in a sea of absurdity.
Marla
So it does sound like there may be some trouble for the Montage with Corus bank?
As for appraisals coming in at the contract price, well, there will always be some people around to deliver the Made as Instructed appraisal. Always have been, always will be.
EdBear
As an occasional tourist, I agree with the statements regarding downtown Reno’s downfall. The wife and I were there staying at the El Dorado on a weeknight this summer. After dinner, I suggested taking a walk; big mistake. The streets were nearly deserted except for various can collectors, shopping cart pushers and other creatures of the night. After an uncomfortable ten minutes we headed back to the ElDo, and were glad to get there without catching something.
From now on it’s Sparks for us.
EdBear
BTW, if the Fitz is closed where will the slowest elevators in the US now reside?
DowntownMakeoverDude
well you got me on the ‘several part.’ I find Reno history, and downtown’s history to be quite fascinating and colorful and ridden with corruption from time to time. It seems like downtown suffered a decades-long blow when Phillip Griffith decided to set his sights outside of Reno when he acquired the Fitzgerald brand for practically free, even though his downtown Reno casinos were profitable, and as a result an entire block of casinos closed from neglect and mismanagement from the mid 80’s to mid 90’s. The Fitz was lucky to have remained open all things considered. Then the Horsehoe’s closure in 1995 can be directly traced to the closure of The Mapes, The Nevada Club, Harold’s Club, and The Riverside, and the resultant increase in crime, panhandlers, and homeless people left to roam the downtown area. No one wanted to stay in a neighborhood so scary, so this caused surrounding motels to convert to weekly rentals. This left the downtown of the 1990’s decade to be a place you wouldn’t want to be caught dead in. That caused the Pioneer, Holiday, Virginian, Riverboat to ultimately close. That’s the history that downtown Reno has tried to recover from. Yikes!
And to answer your question Mike, I believe it’s a gaming property in distress. Perhaps just the next in a long line of once-hip casinos.
Corina
EdBear, you are not allowed to say anything bad about downtown Reno in the presence of Makeover Dude. BB knows this, and does it just to get makeover Dude all riled up. Of course, you are right. Most of downtown Reno looks like the carnival just left. And if makeover Dude suggests that a woman (let alone a married couple like you and your wife) can feel safe walking around downtown Reno alone after dusk, he is a fool, and he insults women. I note that even when he goes out at night, he takes a big dog with him. Pardon me if I am just not inclined to pay $400,000 for a postage sized apt. in the “urban village”, surrounded by boarded up liquor stores and decaying old former casinos, known as the Montage.
inclinejj
No one was trying to make it downtown SF or Manhattan..Ok do people the average people who live downtown afford these condo’s NO
Who did they market them too..out of town people to buy..Ok its not Vegas and people who come in to town to gamble or ski can get a room downtown for very cheap..If you don’t believe me check an online travel site
The downtown the city and the developers all tried for home runs in downtown Reno
Reno Ignoramus
We are roaming far afield from Mike’s thread here. But it really is not fair to lay the demise of Reno’s downtown gaming industry at the singular hands of Phil Griffith. What killed the downtown gaming operations was their complete inability to predict and develop a response to the rise of native american reservation gaming all across the country, and the legalization of casino gaming in many other states.
In 1978, there were only two cities in America where one could gamble in a casino…..Reno and LV. Today, there is not a city in America over 200,000 in population that does not have casino gambling with an hour’s drive. In the heyday of Reno’s gambling franchise, a chimpanzee could have made money as an operator. There was no competition. It may be accurate to say that a few of the operators may not have been much smarter than a chimpanzee. Today, Reno is just one more place where people can gamble. Phil Griffith did not create reservation gaming and he did not oversee the legalization of some form of casino gambling in 30 other states, and he was not responsible for the lack of foresight in Reno’s gaming operators.
Several years ago, Phil Satre, when he was the CEO of Harrah’s Entertainment, said that if Reno wanted to run with the big dogs, it better get off the porch. Reno never did, and the result can be seen by taking a walk down Virginia Street from the tracks to First Street, and taking a walk almost anywhere on Fourth Street.
inclinejj
http://www.tahoebonanza.com/article/20080127/NEWS/486479430&parentprofile=search
inclinejj
RI
The last big casino project in downtown Reno was the Silver Legacy how long ago?
Reno Ignoramus
Incline, I’m thinking the Silver legacy opened around 1995. Hell, I can remember when there was a gas station there on the corner of 4th and Virginia, and a place called the Pizza Oven, a favorite drinking place for UNR students.
DowntownMakeoverDude
lol come on Corina be a LITTLE fair. Yes if I were a woman, and it was after 9:00 p.m. on a weeknight, I wouldn’t walk anywhere east of Virginia Street or north of 2nd Street alone without a dog, or a person, or some friends.
I have always relented downtown has serious problems, why do you think I created my site in the first place? As an avenue for change and keep constant pressure on city officials because when I moved here, I seriously thought downtown sucked.
Anywhere north of 2nd street DOES look like the carnival just left, that’s why RDA is now focused on that area. You have to start somewhere, and they started on the riverfront.
I react to Bantering Bear because he does know how to get me riled up, but we do usually find agreement on some levels and it’s all done in good taste and true debate. Being on this blog with him for years now (or what seems like years), he knows what I am pasisonate about. But if you think I am all goodness and sunshine regarding downtown then you obviously don’t read my blog and YOU are the fool.
DowntownMakeoverDude
You’re right Reno Ig, however his casinos didn’t close because they were not profitable (The Reno Fitzgeralds was the most profitable out of the chain), and this was in the 80’s and early 90’s when reservation gaming and gaming in other states wasn’t an issue. That wasn’t an issue for any of the prior casinos closing, that’s an issue now because we have 2 blocks of ugly, closed shuttered casinos downtown and offering nothing new as inticement for tourists to come check it out. By the time indian gaming did come along, the damage downtown was already done, and it’s really hard to talk an investor into building a new updated casino downtown that MIGHT draw visitors from those indian gaming casinos (which aren’t all that by the way, have you been to some of them in Cali?) when the downtown casino area looks the way it does today. Even the Legends Casino in Sparks can’t find financing right now.
And with RGJ reporting gaming in Washoe County down 9% over last year, I think this discussion of fallen casinos is very much related to Mike’s post about the Cal Neva Casino being a possible distressed gaming property.
billddrummer
Here’s a link about the Legends project.
http://www.nnbw.com/ArticleRead.aspx?storyID=12175
You’re right, though. This has gone far afield from the subject of this thread.
billddrummer
Word has it that Silver State Plaza (location of Mervyn’s in Sparks) has sold to Philips Edison & Co., a REIT out of Cincinnati.
http://www.nnbw.biz/BusinessDaily.aspx?id=2375
Supposedly, a Fresh & Easy Neighborhood Market will open in the mall. I wonder if they will take over the remainder of the space vacated when Safeway closed its store after the roof collapsed in the 2004-2005 snowstorm. (For the record, Safeway had already opened the store at D’Andrea and Vista, and after they elected to close the McCarran store, most of the employees were transferred to D’Andrea.)
Fresh & Easy has 30+ stores open or planned in Las Vegas.
billddrummer
And as far as downtown Reno goes, I don’t.
Ralph
There are similarities between the Cal-Neva Lodge and downtown Reno. Both thrived in the heyday of gambling before, as RI correctly points out, gambling became no big deal. Just because Frank Sinatra set up trysts between Marilyn Monroe and John Kennedy at the Cal-Neva in the 1950s and 60s doesn’t mean squat now. Who cares about the glory days of the Cal-Neva? Most of the poeple who can even remember that are dead or too old to care. We can talk about the heyday of Reno gambling in the 1950s and 60s and into the 70s, and it’s a nostalgia trip. But it is never coming back. The future of downtown Reno, whatever it may be, will not be a return to gambling. It was an era that is gone forever. I agree with others that trying to revitalize downtown Reno on the concept of $400 a sq. ft. condos is absurd. So 100 frickin’ people now live in the Palladio. So? That’s how we’re going to get the carnival out of downtown? I don’t think so.
Paul
well i don’t know about the condos but i lived in Reno for a number of years i worked for club cal-neva for a while as a bike officer?security officer and thing have gotten much worse as for the Virginian the owners of the land it sits on are euro trash when they found the cal neva wanted to buy it they jacked the price up 3 times for there asking price as for the sands they have nothing to offer execpt bad news just like the club cal neva i know i worked at both places and would have to detain these people daily rean was i better place when i first moved there in 1989
inclinejj
Supposedly, a Fresh & Easy Neighborhood Market will open in the mall. I wonder if they will take over the remainder of the space vacated when Safeway closed its store after the roof collapsed in the 2004-2005 snowstorm. (For the record, Safeway had already opened the store at D’Andrea and Vista, and after they elected to close the McCarran store, most of the employees were transferred to D’Andrea.)
Fresh & Easy has 30+ stores open or planned in Las Vegas.
Fresh & Easy isn’t paying for TI’s Tennant Improvements, They will never sit down at the table and sign a lease for a store in Pacifica, Ca. The company promises alot verbally but never puts anything in writing..
I know they put all the stores on hold for 90 days to look things over but I can imagine the big expansion into the area will fizzle out in the slow down of the economy
Waldo
Maybe they could tear down everything on Virginia street between the railroad tracks and the river and Jethro Bodine could build his Beverly Hillybillys complete with oil derrick thing. It would be an improvement.
inclinejj
I go down to Carson now and then and Hit the Carson City Costco..Bondine’s is open and a pretty cool little Casino..I wonder if the locals turn it into a locals hang out
Reno Ignoramus
I see there is a story up on the RGJ website that the NOD on the Cal-Neva has “been resolved.” Not much detail.
I swear the RGJ gets it leads on the real estate market from reading this blog.
Waldo
The RGJ also has stories about Southwest and American airlines cutting service to Reno due to lack of demand, Chrysler says it will run out of cash by year end, the Board of Regents is meeting to cut costs and raise tuition, Bank of America plans to shed 35,000 jobs, and the Baskin Robbins on Keystone Ave. is going out of business.
But other than that news on a Thursday night, things look great for the housing market.
GreenNV
You bet they do. RRB broke the SunCal Copper Canyon default 2 weeks ahead of the RJG. Where did you first learn about all the R&B defaults, as well as all the other developer defaults that led to the RJG investigative report? RRB. (they contacted me and I contributed to their story). The Cal Neva “leak” was a hat-tip to them (Jason, Susan and Bill) who do their best to tell the real story to the masses. Their jobs can’t be easy to balance right now.
Bottom line is that RRB feeds you information ahead of the curve, a lot of exclusive information, and a no holds barred discussion on Reno real estate issues. I couldn’t be prouder than to be assisting Diane, Guy, and JoAnn producing the content on this site. No bull.
EdBear
I’ve been coming to Reno since the late 40’s. I was one of those kids who pressed his nose against the glass to see his parents gamble. I really like Reno, and several times I’ve considered at least getting a second place up there. It’s damn sad to see the destruction of a once really entertaining downtown.
They really missed the boat on Indian gambling. To begin with, Reno is only about one hour further from the Bay Aras than most Indian casinos. And what do you do if you get tired of gambling at an Indian casino? Nothing!
Reno failed to play up it’s advantages, and let the former golden goose die from lack of care and feeding.
Now you’re stuck with a seriously deteriorating downtown that no body in his/her right mind would want to traverse in the dark.
What to do? Fairly simple:
Kick out the bums and return some sense to the street.
Raze all the empty storefronts that have been vacant for so long and turn them into attractive settings and public venues
Play up the advantages to gambling in Reno vs. some single site Indian casino
It doesn’t look like the Atlantis, Peppermill, El Dorado/Silver Legacy, Circus or Nugget are suffering.
As a former consultant to gaming operations (Harvey’s, Harraha’s, etc.) you have to be really stupid to lose money gambling if you own the house.
billddrummer
To Reno Ignoramus:
Whether RGJ says the NOD is ‘resolved’ or not is irrelevant to the recorder’s office. The only thing that’s out there now is the NOD, recorded 12/9/08 (thanks Mike).
I think you’re right–the RGJ gets its leads from this blog.
BTW, did you notice how they interviewed Mr. Capurro (again) about the foreclosure phenomenon here in Washoe County?
billddrummer
And to EdBear:
Thanks for your insight, and you’re absolutely right about the ‘off-downtown’ properties. Why are they so successful, when the downtown properties are suffering?
Better management.
ted
The idiots defaulted on a 25 million dollar loan and the lender is getting the property
GreenNV
The plot thickens. Hat tip to JJ for the link. Remember, you heard it here at RRB first!
http://www.tahoebonanza.com/article/20090106/NEWS/901069979/1061&ParentProfile=1050&title=Lake%20Tahoe%20Cal%20Neva%20casino%20could%20face%20sale%20in%20coming%20months
jeff
does anyone know when the NOD was filed for the montage. I had a reservation on a unit on the 19th floor, 2 bed 2 bath for 660,000. The deed in lieu I guess has already happened and we want our deposit back/trying to get it back but the lawyers for montage said there was no default and no monies are owed for cancellation.
Any new news? I am from LA so I only get email notifications every 6 months or so from the montage directly
longerwalk
You might try posting this to the Montage thread; you’ll likely get no notice here. Wrong topic.
Camaran
Does anyone know if there are any Silver State lodge Cabins still for sale or even in one piece still?