Analyst: Soured Deal Could Tarnish Potential Reno Investors

Friday, July 12, 1996 | 11:59 a.m.

"It depends on how the outside world reads it. If they read it that Stupak couldn't get through the political process in Reno, it doesn't bode well for Reno. It's a disaster for us," said Ken Adams, publisher of the Nevada Gaming Almanac.

But Adams told the Reno Gazette-Journal that he doesn't see it that way. He said it was just business and if investors view it that way, Reno's reputation shouldn't be hurt.

Stupak's plans to renovate the Riverside fell apart this week because the Las Vegas-based casino developer couldn't come to terms with Riverside owner Peter Eng, Adams said.

Still, he said the collapse of Stupak's six-month effort to acquire the Riverside will increase the perception that downtown Reno is a hard sell for potential developers.

"I thought Stupak was a test," Adams said. "If Stupak couldn't get through the process, Reno would be in a difficult time. If he couldn't make a deal, that's business."

Another expert said Reno's biggest development highlight in a decade - last July's opening of the Silver Legacy - may pose some challenges as other hotels struggle to lure tourists from the Legacy and other recently expanded resorts.

"Before the Silver Legacy, Reno was generating good return," said Bill Eadington, director of gaming studies at the University of Nevada, Reno.

"Opening the Legacy probably hurt profit figures. Companies are going to go where there's the highest return on investment dollars. Reno is not going to be on the top of that list."

Compared to the seemingly endless stream of 3,000-6,000-room megaresorts springing up on the Las Vegas Strip, Eadington said he thinks the 1,720-room Silver Legacy and the 2,001-room Reno Hilton are about the biggest developments the city is likely to see, if another investor decides to test the waters here.

"It'll be something with 500 to 600 rooms, or a 1,000-room hotel, maybe," he said.