Eight casinos file appeals on property values

Wednesday, March 27, 2002 | 11:44 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- Eight major casinos in Southern Nevada, whose net income ranged from $35.4 million to a loss of $3.1 million, have filed appeals with the state Board of Equalization to reduce their property values.

The board has received 38 appeals from Clark County taxpayers. Also among those filing are apartment owners, farmers, auto dealers and golf course operators.

The board set May 13-14 to start hearing the appeals. It set aside Aug. 22-23 in Las Vegas to consider the cases of the gaming businesses.

Several of the casinos won reductions from the Clark County Board of Equalization but are appealing again to the state.

The 3,174-room Las Vegas Hilton was first valued by the Clark County Assessor at $311.4 million but the county board reduced it to $210 million. The Hilton, owned by Park Place Entertainment Corp., says the value should be $145 million.

In documents filed with the state board, the casino reported that its net income of $35.4 million as of June 30, 2000, fell to $20.2 million as of June 30, 2001. Income is one factor in figuring the property value of casinos.

The assessor's office put the value of MGM MIRAGE'S MGM Grand at $1.045 billion and the county board lowered that to $1.015 billion. The business wants it reduced further but did not specify a figure in its appeal. Its net income last fiscal year was $35.4 million.

Coast Resorts Inc., owner of the 212-room Barbary Coast, said its value should be $25 million, not the $30 million set by the county. Its net income last fiscal year totaled $5.1 million.

The Riviera, which recorded a $3.1 million loss in net income last fiscal year, says its property should be valued between $118 million and $140 million. The county board had it at $147.5 million.

The Four Queens downtown, which is in the process of being sold, was originally valued at $45.5 million by the assessor's office and the county board lowered that to $35.5 million. The owners feel the real value is $28 million. It reported net income of $4.6 million last year, up from $3.8 million in fiscal 2000.

Elsinore Corp., holding company of the Four Queens, announced it has agreed to sell the property to SummerGate Inc. for $22 million. SummerGate will assume $4 million in debt.

Station Casinos Inc., which purchased the Reserve for $66 million 15 months ago, is protesting its taxable value of $62.8 million. The county board declined to reduce the value. Now called the Fiesta Henderson, it reported a net loss of $572,172 last fiscal year.

The Union Plaza downtown was initially valued at $58.9 million and was lowered to $32 million by the county board. It did not specify how much more it wants the state board to reduce it. It reported net income of $6.4 million as of June 30, 2001.

The county assessor's office initially valued MGM MIRAGE'S Buffalo Bill's in Primm at $115.7 million and that was lowered to $90.2 million. The casino suggests its true value at $62.3 million. It reported its net income at $17.9 million last fiscal year.