North Las Vegas Council approves Fiesta buyout

Diana Sahagun

Friday, Dec. 1, 2000 | 10:35 a.m.

With all the fervor of a Sunday morning church service, Gene Collins shook the rafters of North Las Vegas City Hall Thursday, damning Station Casinos Inc. for laying off at least 1,000 workers during the holiday season.

The comments of the National Association for the Advancement of Colored People Las Vegas Chapter president continually drew loud and thunderous applause from a standing-room-only crowd that turned out in opposition to Station's request for a gaming and liquor license for the Fiesta hotel-casino.

After an almost two-hour hearing where tension and tears ran high, the council granted Station the licenses by a 3-2 vote -- council members Stephanie Smith and John Rhodes voted against the measure, citing concerns with Station's hiring practices.

The approval is the final regulatory hurdle Station faced in its bid to acquire the Fiesta for $185 million. With approval now received from Nevada gaming regulators and the city of North Las Vegas, Station hopes to close on its purchase of the Fiesta from the Maloof family in January.

George Maloof, president of the Fiesta, stood quietly in the back during the meeting, appearing stone-faced.

Attorney Jack Godfrey, representing Station, maintained at the start that the council had no legal authority to consider the company's hiring practices when deciding whether to grant a license.

Taking offense to residents' suggestions that Station was heartless for laying off at least 1,000 workers once it takes over the Fiesta, Godfrey said the company is a positive asset to the community, contributing dollars and programs to schools.

"We are not insensitive to the human factor," Godfrey said.

The human factor lies in the fact that once Station becomes the new owner of the Fiesta, employees will have to reapply for their jobs -- much like they never worked at the property.

It's the same situation faced by workers at the Santa Fe hotel-casino, recently taken over by Station. After that buyout, the 900 Santa Fe workers were required to reapply for their jobs.

While many at the meeting put the number of current employees at the Fiesta at 1,200, Scott Nielson, Station executive vice president and general counsel, said the number is more like 1,000.

Nielson said Station plans to hire 950 employees to run the new Fiesta. Currently 800 people from the Fiesta have applied for jobs. So far, 380 people have been hired and there are more than 400 openings.

Nielson admits that not everyone will be rehired. Because 300 people will be transferred to the Fiesta from other Station properties, the company can't hire the entire work force.

"We're looking for good employees," he said. "We have an obligation ... to our shareholders to hire the very best employees we can."

Mary Jefferson, who was employed at the Santa Fe and transferred to the Fiesta and is now in danger of losing her job, quietly took the podium, telling the council that many workers didn't attend the meeting because they were afraid of hurting their chances to be rehired.

"I'm here to put a face on the problem," she said. "Right now, Fiesta workers are holding their breath hoping they'll hear a call from (Station)."

Nielson promised the council that Station would provide those employees who are not rehired with free job placement assistance, resume services and job training.

Numerous Station employees took the stand and said they were proud to work for the company. They also dismissed any charges of discrimination.

"I don't believe Station Casinos discriminates at all," said Laurice Turner, who has worked for Station for five years.

Collins balked at Station portraying itself in a positive image and also criticized its diversity program.

"How can you lay off 1,200 people in the middle of December and say you are not insensitive?" he bellowed to the council. "How can you ask those of us who live in the community to visit your establishment knowing the potential that some child will not have a Christmas?"

D. Taylor, staff director for the Culinary Union, told the council, "You are it. You are their hope that they're going to maintain their jobs."

Taylor also asked the Nevada Gaming Commission last month to make Station retain the Fiesta employees as a condition of its license, but the request was denied.

Following the meeting, Collins expressed disappointment that Councilman William Robinson voted in favor of the license, saying his vote could have delayed the matter. The two had met Wednesday and Collins said he was sure Robinson would vote against the license.

"Robinson really rolled us under the bus," Collins said. "He understands what the law says, but William has been given the power to make the law. He chose to put 1,200 jobs in harm's way."

Collins added that he has no hard feelings for the councilman and said he will continue to work with Station on its diversity program.

Following the meeting, Smith said she disagreed with City Attorney Sean McGowan, who said the city had no legal basis to deny the license.

"It says in the law that we have to consider the welfare of the inhabitants of the city," she said. "We do have broad discretion."

Once the deal is complete, Station will own six properties in the Las Vegas Valley. It has also agreed to purchase the Reserve in Henderson from Ameristar Casinos Inc. for $70 million.