Strip car rental outlet fights eviction notice

Grace Leong

Thursday, Oct. 26, 2000 | 10:25 a.m.

Lakes Gaming Inc. of Minneapolis is trying to evict Budget Rent A Car and Sales from its premises at Nevada Resort Properties Polo Plaza Ltd. at 3743 Las Vegas Blvd. South, which is expected to be demolished as part of Lakes Gaming's plan to develop a non-gaming retail, hotel and entertainment complex.

Lakes Gaming alleged Budget, which was granted an option in July 1997 to extend its lease for two three-year terms, didn't exercise the option to extend the lease through March 1, 2003. Lakes therefore submitted a 30-day notice to terminate what it considers to be Budget's month-to-month tenancy.

Lakes Gaming owns a company called Grand Casinos Nevada I, which acquired Polo Plaza located near the Polo Towers timeshare development in October 1999. Lakes was formed in December 1998 as a spin-off of the tribal gaming business of Grand Casinos, which was then acquired by Park Place Entertainment Corp. of Las Vegas.

Stan Taube, Grand Casinos Nevada I's president, said the $700 million project -- touted by project officials to be a blend of Times Square and New York's Central Park -- will sit on 16 acres at the southeast corner of Harmon Avenue and the Strip.

"We're going to develop the property in the next year or two. Polo Plaza will come down and the tenants will have to leave," Taube said. "But we already have an agreement on that issue with all our tenants. Budget is the only one that didn't comply."

But Budget, doing business as Malco Enterprises of Nevada Inc., filed an affidavit on Oct. 17 in Clark County District Court opposing Lakes Gaming's 30-day notice of termination of Budget's tenancy.

"Budget contests that and says it has exercised an option (on Sep. 30, 1999) to extend the term of the lease and is therefore not a holdover tenant," said Thomas Harper, Budget's attorney.

But Taube disagreed. "They are more than welcome to stay (until the property is demolished). We are happy to enter a new lease with them, but Budget has been unreasonable in refusing to acknowledge they didn't send the notice timely and they've left us with no option but to terminate their lease."

Budget, which said it suspects the lease extension letter may have been misplaced by Nevada Resort or Lakes Gaming during the change of ownership, management and operations last October, said the car rental agency shouldn't be penalized for its landlord's alleged failure to properly maintain its records.

Budget said Nevada Resort had agreed in 1997 to pay Budget a fee if it were to terminate Budget's lease of either $250,000 or $450,000, depending on whether Budget will be relocated to another location owned by Nevada Resort. Budget alleged Lakes Gaming's attempt to evict Budget may be an attempt to avoid paying the fee.

Taube, however, disputed Budget's claims. "We have numerous tenants and everyone sent their notices by certified or registered mail. Budget overlooked it and now they're trying to use that as a convenient excuse to say we're avoiding payment."

"Because of slight delays in getting the project started, Budget has been allowed to remain in business far longer than anyone has expected, and they've come off far better for that," Taube said.