Carson’s Ormsby House hotel-casino sold to duo

Thursday, Sept. 16, 1999 | 10:41 a.m.

CARSON CITY -- The Ormsby House hotel-casino, built by former Sen. Paul Laxalt and which has encountered tough financial times in recent years, has been sold to two partners who own a local computer business.

Al Fiegehen and Don Lehr, owners of Cubix, said Wednesday they have opened an escrow account to buy the 200-room resort for an undisclosed price from Cerberus Partners, which obtained the business in a foreclosure sale in January 1998. Its then owner Barry Silverton defaulted on a $5.5 million loan.

The hotel-resort, the largest in Carson City, has been operated by former Lt. Gov. Bob Cashell. He will stay on while Fiegehen and Lehr seek state gaming licenses, which could take up to nine months.

Fiegehen and Lehr said they would retain the present 290 employees. Their company, Cubix, was founded in 1975 in Orange County, Calif., and moved to Carson City in 1979. It employees 200 people and designs, manufactures and sells industrial-strength computer hardware platforms.

Fiegehen and Lehr said they plan to restore the hotel as a central meeting place for social and business activities in Carson City.

Laxalt, after he left the governorship, joined with his brother Mickey to build the hotel, which is just across the street from the Nevada Legislature. But they ran into financial troubles and Woody Loftin, a casino owner from Hawthorne, bought the business in 1975.

It was during Loftin's 10 year tenure that the hotel made money. When he died the financial problems resumed.

The hotel was in bankruptcy in 1990. It was closed in January 1993, reopened in February 1995 and then placed in Chapter 11 bankruptcy again in February 1997.