Price for hotel-casino revealed

Monday, Oct. 4, 1999 | 12:31 p.m.

CARSON CITY -- Buyers of the Ormsby House hotel-casino paid $3.75 million for the local landmark, according to documents filed with city officials.

Papers filed last week with the recorder's office disclosed the price paid by Cubix Ormsby LLC, headed by Allan Fiegehen and Don Lehr.

Fiegehen and Lehr finalized a deal with New York-based Cerberus Partners for the 200-room hotel in September. Cerberus got the property after it went through two bankruptcy proceedings.

A public auction was held in May and a lone bidder offered $2 million. That amount was rejected as too low and was later upped to $4.2 million, but negotiations fell through.

Cubix Ormsby LLC is a wholly owned subsidiary of Cubix Corp. Fiegehen and Lehr founded Cubix Corp. in Orange, Calif., in 1975 and moved the firm to 2800 Lockheed Way in Carson City in 1979.

Cubix, which employs about 200, is a privately held company that manufactures computer equipment and software used by companies and government agencies to operate networks and host Internet services.

Veteran Nevada casino operator Bob Cashell will stay on as general manager and, more importantly, as holder of the Ormsby House's gambling license. Fiegehen and Lehr plan to get licenses, but the application process with the Nevada Gaming Commission could take up to nine months.

The Ormsby House Hotel Casino was built by Paul Laxalt, a former governor and U.S. senator, and other Laxalt family members in 1972.