Las Vegas Sun

March 18, 2024

State law stands in way of new casino

Some residents in North Las Vegas are mustering opposition to another possible casino in their city, the latest effort to stifle the growth of suburban casinos.

While not-in-my-back-yard opposition to casinos might have been easily dismissed by developers and government agencies in the past, these citizens are bolstered by a state law that has been used twice to block construction of casinos.

The thwarting of a third casino could send a message to the gaming industry that Las Vegas Valley residents are losing their appetite for suburban casinos - and are succeeding in halting their construction.

The tension between casino developers and residents will only increase as the valley grows and a dwindling number of potential casino sites directly abut residential areas.

At issue in the near term are plans by Olympia Group - who developed Southern Highlands on the south side of the valley - to build a 2,675-acre master-planned community with nearly 16,000 homes, six schools, fire and police stations, parks and a library. The project has won preliminary approval from the North Las Vegas City Council.

As part of that community, Olympia wants to build a hotel and casino at the northwest corner of Losee Road and the Las Vegas Beltway,

In the old days, the casino would have been approved by the local authorities with hardly a blink.

But in 1997, the Nevada Legislature passed Senate Bill 208, which placed strict guidelines on the approval of neighborhood casinos.

It forces a developer, in some cases, to prove to a state review panel that its casino will not hamper residents' "quality of life" or be detrimental to the "health, safety and welfare" of the community.

Given the lack of local research on the social costs and benefits of neighborhood casinos, developers are facing an almost impossible hurdle in proving that their casinos will not be detrimental.

Disgruntled residents have killed plans for two suburban casinos since 1997 - one proposed by Station Casinos at the Craig Ranch Golf Course in North Las Vegas and one proposed by Boyd Gaming Corp. in a Spring Valley neighborhood in the southwest valley. Those casinos were turned down in 2001 and 2000, respectively.

Several casinos have been constructed since 1997 without being held to SB208 guidelines because their plans were in the pipeline before the law's passage. In those cases, objectors can fight the size and scope of the casinos but not dispute the basic approval of the casinos.

The most recent example of such a grandfathered casino is Station's recently opened Red Rock Resort. The best that Summerlin residents who opposed the project could do was persuade the developer to reduce by 100 feet the height of the hotel tower. It was still, however, 100 feet higher than originally proposed.

Developers who want to build casinos in the suburbs under the rules of SB208 must now brace for the likes of Mike Matthes, a North Las Vegas resident who is one of about 2,000 people who have signed petitions opposing Olympia's casino plans.

"I grew up here. The casinos were always down on the Strip," he said. "I think that's where they should be located. Up here, we need parks, libraries - things of more value to a family."

In its development agreement with Olympia, the city didn't ensure the approval of the casino.

The developer says plans for a casino are years off because it could take four to five years for enough surrounding development to warrant construction. Olympia first needs to obtain zoning approval from the North Las Vegas City Council. If that is granted, the residents can cite SB208 in appealing that approval to the state review panel.

Olympia officials believe there is early opposition to their casino because of the mistaken belief that several casinos are proposed in the neighborhood. Opposition is likely to die down once neighbors understand that high-quality amenities besides gambling also will be offered, they say.

North Las Vegas, which historically has lacked upscale entertainment, largely embraced a nearby casino proposed within the upscale Aliante community five years ago. When the City Council approved zoning for that casino, residents didn't appeal - a scenario some attribute to the fact that the region was much less populated.

The Greenspun family, owners of the Sun, are partners in the proposed Aliante Station that would be built and operated by Station Casinos.

With the growth of North Las Vegas and its upscale Aliante, the city's first major master-planned community, some residents are concerned about a proliferation of casinos and don't feel as needy for the kinds of commercial development that big casinos support.

Many of the residents who oppose the Olympia casino are young families, while casino supporters include seniors who enjoy the social aspects of gambling and the proximity of restaurants and other amenities.

"I'm not against casinos - they bring a lot of revenue and taxes to the state," said Matthes, who acknowledges that, as a construction worker, he benefits from the state's dominant industry.

But he worries about traffic and drunken drivers if a casino is built in his neighborhood.

Matthes isn't without City Hall allies. North Las Vegas Councilman Robert Eliason asked the council to nix the casino from the development agreement - effectively nipping the project in the bud - saying the city doesn't need another casino given the number already zoned for future construction.

"We had an opportunity to stop it, and we let it go," Eliason said at a council meeting May 3.

At the meeting, Las Vegas Sun Editor Brian Greenspun told the council that it had previously promised to not allow a casino at the Olympia site.

At that same meeting, Councilwoman Stephanie Smith touted how gaming - and the tax revenue it produces - has been good for the region. "You live in Nevada, the pioneer of gaming in the country," Smith said. "You don't pay any income taxes because of gaming."

It seems clear that, even if the Olympia casino is blocked, at least three more casinos may be built in North Las Vegas because those sites were approved before the passage of SB208.

Besides Aliante Station, which would mark the fourth site in North Las Vegas zoned for a casino, Station Casinos last year purchased vacant land at the northeast corner of the beltway and Losee Road and across the street from Olympia's casino site. The company hasn't decided whether the neighborhood, which is still fairly undeveloped, will warrant a casino.

There's still a message to send, Matthes said, by fighting Olympia's casino:

"If we approve this one, the next developer will want one, and we'll have seven, eight and nine casinos. Why do we need all these casinos? I think four is enough."

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