Reno city officials negotiate details of Fitzgeralds deal
Susan Voyles and Scott Sady
Reno Gazette-Journal
10/12/2006
An artist’s rendering of what the plaza would look like
One more piece in building a landmark plaza in downtown Reno is falling into place as city officials negotiate the final details for a land swap with Fitzgeralds Casino-Hotel.
Fitzgeralds would gain the city-owned Old Reno Casino in exchange for giving up small strips of land on both sides of the train trench. The city wants to build a two-block plaza over the year-old railroad trench.
The Reno City Council authorized negotiations on Wednesday to complete the deal.
Fitzgeralds would agree to demolish the Rainbow Bridge that crosses the trench at Virginia Street. It would be in the way of the plaza.
The City Council on Wednesday also took the first step to authorize the sale of $15 million in bonds, backed by leases from 77 properties along the trench inherited from Union Pacific Railroad.
Finance director Andy Green said those funds could be used for a variety of projects. This could include helping pay for the last $2 million needed to build the $16 million plaza.
Steve Varela, Reno public works director, said he expects to bring a final design for the two-block plaza to the City Council for approval in November. The plaza, also fronting the Montage condominium development at what was former the Golden Phoenix Hotel Casino & Resort, would include a series of giant trellises. They would be arched over the plaza for shade and hanging lights.
Fitzgeralds' Rainbow Bridge opened in January 1998, serving as a pedestrian overpass while the trench was under construction and a temporary track was laid to keep trains moving. Union Pacific gave Fitzgeralds $800,000 to build it.
With the trench opening last year, Varela said there's no need for the bridge.
Final details to be negotiated include arranging for Fitzgeralds to retain some valet parking spaces on Commercial Row near its hotel entrance.
How it would work
The city would give up the Old Reno Casino, a 4,225 square-foot parcel between Fitzgeralds and the Old Masonic building on Commercial Row. With the small parcel and its ownership of the Masonic building, Fitzgeralds would own the entire block on Commercial Row.
Bud Hicks, Fitzgeralds lawyer, said the company has no plans for either property for now. Fitzgeralds is in bankruptcy and controlled by a court-appointed supervisor.
Looking inside the windows, the interior of the Old Reno Casino has been trashed and exterior signs ripped off the wall.
Hicks said the Masonic Lodge building, the oldest building in Reno, probably can't be restored.
"The structure is not sound. It has a rubble foundation," said Jerry Priddy, Fitzgeralds' general manager. And he said the foundation is disintegrating.
In 2003, Reno condemned the property and bought it for $1. The condemnation allowed a company owned by Harvey Whittemore to retain the unlimited gaming license and use it elsewhere without having to build 200 hotel rooms.
The city agreed to that deal to avoid a lawsuit from Old Reno Casino over lost business while the trench was under construction.
Whittemore and the Peppermill later considered using that gaming license to open the Lazy 8 casino project in Spanish Springs. Then they decided to build the 200 hotel rooms.