Lake Tahoe making pitch to S. Nevada

Friday, June 14, 1996 | 11:59 a.m.

Lake Tahoe's south shore is pitching its scenic beauty and mild temperatures in Las Vegas, hoping to lure potential gamblers who live in sizzling Southern Nevada to visit the northern part of the state.

"Our research showed us that there's a great opportunity there, particularly in the summer," said Skip Sayre, executive director of the Lake Tahoe Visitors Authority.

The authority has launched a $150,000 advertising campaign in Las Vegas aimed at drawing people from the desert to the mountain lake.

Some Reno-area executives think the valley resorts might benefit from any influx of Las Vegas tourists. Others aren't so sure.

Michael Houghton, vice president of marketing for the Reno-Sparks Convention & Visitors Authority, wonders if people from Southern Nevada might not be drawn more to the beaches than to the casinos.

"More of the trip motivator is to get away, to get up to the lake, to be relaxed and be involved in nongaming activities," he said.

Ormsby falls behind

The general manager of the Ormsby House hotel-casino admits the resort is behind on many bills, but he says he's in the process of fixing that -- and the establishment's reputation.

The Ormsby House has had a reputation of not paying its bills -- everything from federal and state taxes to vendors who supply food and beverages -- since it reopened nearly two years ago.

Most recently, the club faced liens from the state Department of Taxation and Internal Revenue Service totaling more than $80,000.

"I inherited this mess April 1," said Ormsby General Manager Bruce Dewing, a veteran casino manager hired by owners to fix the problems. "We're not hiding anything. We are behind with everybody and trying to catch up."

Last week, the casino took care of the Taxation Department's claim for $24,007 plus interest for sales tax collections, and the agency lifted its lien.

Harrah's deal

Harrah's Entertainment Inc. said it has signed an agreement to develop and manage a casino for the Potawatomi Indians on a reservation 17 miles from Topeka, Kan.

The Kansas Legislature and governor have approved development of a 63,000-square-foot casino and 100-room hotel featuring 500 slot machines, 40 table games, a 500-seat bingo hall and restaurant and lounge facilities.

Harrah's said the $37 million complex would employ about 800 people.

Pending approval by the National Indian Gaming Commission, the casino will open in mid-1997, Harrah's said. Later this summer, a temporary casino with 175 slots will begin operating, it said.

Crucial tunnel

Mirage Resorts Inc. Chief Financial Officer Dan Lee says Mirage won't build its planned casinos in Atlantic City's marina district if the state doesn't finance a way for gamblers to easily reach the district.

Lee cited a report that Gov. Christine Whitman will decide in two weeks whether the state will build Mirage a $300 million access tunnel.

"We need people to be able to get over to our hotel," Lee said. "We are not going to build a hotel people can't get to."

Several months ago the city gave Mirage 150 acres of undeveloped land in the city's marina district on which Mirage and several partners plan to build three or more hotels. In return, Mirage agreed to pay as much as $15 million to move existing city facilities from the site.

Under terms of the agreement, Mirage has no obligation to go ahead with the projects if the state doesn't provide an access tunnel.

Several community groups and some casino operators including Donald Trump and Bally Entertainment Corp. Chairman Arthur Goldberg oppose the agreement, arguing that the terms are too favorable to Mirage.