Can Reno Be "The Next Silicon Valley"? (& Can Las Vegas?)

Yesterday, KRNV News 4 asked.

“The number one choice of why we're in Northern Nevada is quality of life,” says co-founder of Noble Studios, Season Lopiccolo.

For the diverse group of tech-savvy professionals at Noble Studios, Reno has something for everyone.

“Some snowboard, some like to dress up and pretend to be someone else, we have musicians, people with their own bands, all different walks of life,” says Lopiccolo.

Downtown Reno is in the midst of an image makeover, shifting from a place known for its bright lights and casinos to a world-renowned high tech hub.
And the supportive and entrepreneurial friendly environment within the biggest little city is making a big difference.

“One of the main reasons why we moved to Northern Nevada is that a handshake means something here,” says Lopiccolo.

I'll do my best to answer.

Is it possible? Sure. Is it probable? Perhaps when we get serious about investing in public infrastructure.

But then again, at least Reno has public infrastructure. Las Vegas doesn't have much of any left, so it's much more difficult to work on diversifying Southern Nevada's economy. Tony Hsieh is trying to do the same thing in Downtown Las Vegas. But if no one could even step up to save the Nevada Cancer Institute (which was ultimately gobbled up by a CALIFORNIA college), how can we really grow our own tech sector? As long as we fail to properly invest in our future, our economy will continue to suck.

At least Northern Nevada has UNR...



And to their credit, folks at UNR have been doing a great job in partnering with the greater communities around the Reno-Carson metropolitan area to work on economic diversification. This at least partially explains why Northern Nevada's economy hasn't been as devastated by continuing weakness in the gaming & tourism sector as Southern Nevada was when "The Great Recession" first hit.

However, the same set of data also shows that continuing gaming weakness IS harming economic recovery up north. Not even Reno is immune from it. And as we continue to see expansion of tribal casinos in California and online gaming worldwide, Northern Nevada will need to continue working on diversification to build a brighter future that isn't just based on fickle gamblers.

And again, we in Southern Nevada can't depend on fickle gamblers for our future, either. We also have to face the reality staring us down as Macau continues to grow, online gaming goes live, and new casino projects are being proposed everywhere from South Florida to Baja California (Mexico). While gaming will likely always be in our blood, there's no reason why we shouldn't look beyond physical casinos to start attracting new gaming technology companies, online gaming innovators, as well as infrastructure support and consulting services.

But as long as our schools suck and as long as the rest of our public infrastructure continues to lag, Southern Nevada will continue to suffer our addiction to the extreme highs and extreme lows of "the bubble based economy". I'm sure I sound like a broken record sometimes, but I nonetheless feel the need to continue talking about this until we finally see some real action and real solutions. We really do have the potential to bring more high tech jobs into this state, especially in sectors like gaming and renewable energy where we have natural strength, but we'll never realize that potential if we don't invest in our "human capital".

Reno is already seeing some success in bringing in new high tech jobs. They just need to finish the job in diversifying the economy up there. And Las Vegas still has plenty of catching up to do in that department. And ultimately, both ends of the state need more investment in public education to ultimately be successful.

Scenes from the Campaign Trail: Chris G House Party in Las Vegas

(As campaign season heats up in the final days before early voting begins, I'll be going around the valley and looking at who's doing what.)







Last night, Chris Giunchigliani's campaign hosted a house party, debate watch party, and birthday party (for some special supporters) last night. Above and below are the sights and sounds of what happened at The Arts Factory.

Bob Coffin at Stonewall, on Why He's Running for LV Council

Bob Coffin has never been one to "go along to get along". He prefers to do what's right and let the consequences follow. That sturdy resolve of his was on full display last night.

Here's the video of Bob Coffin at Stonewall last night:

Casinos: Boyd Gaming Swings Back to $8.4 Million Q1 Profit, Still Wants Station's Casinos

So Boyd reported earnings this morning. They went from a $0.16 per share, or $13.8 million total, loss in Q1 2009 to a $0.10 per share, or $8.4 million total, profit. So how did they do it? Apparently they've been cutting costs rather aggressively, as net revenue actually fell 8.4 percent to $398.4 million from $434.8 million in Q1 2009.

Still, Boyd stated in its report that there's good reason to be more bullish on Las Vegas these days.

Keith Smith, President and Chief Executive Officer of Boyd Gaming, commented on the quarter: "We continue to be encouraged by improving trends in our business, which clearly reflect the signs of an emerging recovery. Our Las Vegas Locals market reported the best year-over-year comparison in nearly two years, and business levels are returning to normal seasonal patterns in this region. Given the positive developments in our business, combined with continued improvement in the national economy, we expect to generate year-over-year growth during the second half of 2010."

Looking at the internals, it seems like the locals' casinos are starting to recover their footing. Boyd's locals' casinos' Q1 2010 EBITDA was off only 10.8% from Q1 2009, compared to Boyd's Downtown casinos' EBITDA dropping 37.3%. No wonder why Boyd isn't pursuing any more Downtown casinos, but is still aggressively going after Station Casinos.

During Tuesday’s conference call, Smith said Boyd is still aggressively pursuing the acquisition of Station Casinos’ assets.

In December, Boyd made an offer to purchase Station Casinos’ assets in an effort to expand its locals market. The offer was $2.45 billion for the company’s 18 casinos and casino-hotels in Southern Nevada.

“We welcome the opportunity to compete for Station [Casinos] assets so long as the process is competitive, open and fair and as long as the assets have not been devalued to a point where it no longer makes financial sense,” Smith said.

So the picture is becoming clearer now. Boyd seems to have found the "magic formula" of expense cuts and travel/gaming promotion to return its locals' casinos to profitability (thereby taking the entire company back to black), so it thinks it can make money off Station's casinos. But wait, can they negotiate a deal with the Greenspuns on GVR and Aliante? And can they run these and the other "OpCo" properties without Station's Boarding Pass (players' club program) feeding locals and non-Strip travelers into the casinos? Apparently so, or so Boyd execs think.

Wish Me Luck on Friday!

I'll be doing something I haven't done in a long time... I'll be trying a brand new restaurant! Yes, add this to the many delights you're enjoying this week.

So long story short, Mr. ELV reported yesterday that Paymon's Downtown closed. Sorry, but no tears were shed by moi... I've never had better than a mediocre dish at any of the Paymon's I've tried. (Seriously, this is where to go for good Middle Eastern grub.)

And then at last night's Stonewall mixer at The Arts Factory, I learned more about who will be replacing Paymon's. The Arts Factory’s new restaurant will be called “Bar+Bistro”. And since the web site isn’t up yet, let me give you a sneak preview of what’s to come. It’s starting out for lunch Monday through Friday, and it will expand to full dinner service Monday through Saturday. They have plenty of salads and sandwiches on the menu (a no-brainer for lunch service), along with some pastas and meat dishes (probably what will be the more popular dinner choices).

I’m not seeing any booze on the menu, so I guess I’ll have to wait until Friday to see if they have their liquor license yet. The chef/owner was pretty friendly when I met him last night and seemed pretty knowledgeable about good Italian cooking, so I’m cautiously optimistic going into Friday dinner.

So wish me luck on Friday! And if you have any good suggestions of new restaurants for me to try, please let me know. I'm almost always up for something new and exciting! :-)

Golden Nugget's New Rush Tower Opens

The first new hotel tower built in Downtown Las Vegas in two decades is now open for business.

The hotel-casino had a grand opening celebration for its Rush Tower, the first new hotel tower to be added to the downtown area since Golden Nugget’s Carson Tower opened in 1989.

Mayor Oscar Goodman and Tilman Fertitta, president, chairman and chief executive of the Golden Nugget’s parent company, Landry’s Restaurants Inc., cut the ribbon in the Rush Tower lobby at a ceremony Monday evening while welcoming the news media, VIPs and Las Vegas notables.

Goodman praised Fertitta for investing in downtown Las Vegas and for his commitment to finishing the project, even through the economic downturn.

“When Tilman came to town, the two of us met and he said, ‘Mayor, I’m going to do for you what I’ve done for other parts of the country where we have our businesses and that is help you revitalize your downtown.’” Goodman said. “A lot of folks come see me in city hall and make promises and, unfortunately, many of them are unkept, but not his promise.”

The Golden Nugget officially welcomed its first guests to the $150 million Rush Tower on Friday. The 25-story, 500-room tower includes four penthouses, 70 junior corner suites and standard rooms that are 20 percent larger than the property’s other standard rooms. Guest rooms range from 439 square feet to one-bedroom parlor suites at 1,326 square feet.

Let's see if this pays off for Fertitta and Goodman. Landry's now needs to fill the Rush Tower with tourists. Las Vegas badly needs the extra tax revenue. Downtown needs a shot of new energy in its arm.

The Golden Nugget has always been the classiest joint Downtown, and this just elevates their reputation some more. And especially at the price point they're hitting, Landry's shouldn't have a hard time filling up Rush Tower. The rooms there start as low as $69 per night, which is mind blowing since 4-star hotels rarely go for this low on The Strip.

More Controversy on Old Vegas v. New Vegas

It seems like the controversy that exploded in the comments on the latest "Ask Mr. Sun" piece on theme casinos, and really the value of tacky "Old Vegas", has just kept raging on. Steve Friess weighed in with his take on Vegas' latest cultural setbacks/throwbacks. But possibly even more controversial, Mr. ELV joked about demolishing Fremont Street altogether over its seedy casinos and criminally awful food offerings.

Just like Wednesday, I feel like I'm caught in the middle of this struggle between the sophisticated critics and the "unwashed masses" all over again. While I actually agree with John Curtas and Steve Friess that much of the “Old Vegas” nostalgia, as embodied Downtown, is overrated tackiness, it seems that the hoi polloi prefer their Vegas old and tacky. And really, is it wrong that they like their Vegas experience cheap and trashy?

Honestly, I must admit that I liked my last visit to Fremont Street Downtown. Sometimes it just feels good to let my hair down and enjoy the simpler things in life, like walking by stripper clubs and actually putting nickels into a 5 cent slot machine. While I always have fun dressing up to go out to dinner at Ago or enjoy a bite or three at Society after seeing Le Reve, sometimes it’s nice to shake up the old routine (and save some dinero) with a good ol’ video show and footlong margarita at Fremont Street.

And besides, it’s isn’t a complete cultural wasteland Downtown. Fremont East does have some hip indie clubs, and there are a handful of culinary diamonds in the rough. Firefly's a great tapas bar at The Plaza, and Grotto is an underrated gem of an Italian spot at The Golden Nugget.

So shouldn't folks have the choice of going to gamble somewhere tacky Downtown if that's what they want to do? Contrary to what some may think, a lot of folks would probably be furious if Fremont Street bites the dust. And as I suggested earlier this week, I do think there’s a “happy medium” balance between the old Kitschy Vegas and the new Haute Vegas to be found. I like the new glamour of The Strip, but Downtown will never be like The Strip so Fremont might as well keep its kitsch and hokeyness going for all the old timers and cheapo gamblers who appreciate it.

I think one of the biggest mistakes the casinos made was in oversaturating the high-end market. It’s good for discerning travelers to have such a glut of 4 and 5-star hotel rooms available here for $100-200 per night (or even LESS if you know where to look), but it doesn't help the casino giants’ bottom lines and it’s still too costly for those traveling on limited budgets.

Same goes for food. I appreciate gourmet dining. I appreciate quality ingredients, great technique, and beautiful presentation. However, there really are tourists and locals out there that just see the restaurants as pit stops for “cheap fuel”. Believe it or not, there are people out there that like those 99 cent shrimp cocktails.

I think that’s the key here. We need variety. While we may not like the tacky offerings downtown, I do think there’s a role for Downtown as the “Old Vegas” alternative for visitors that don’t like the “New Vegas” offerings on The Strip.

Come on, this town is big enough to handle both the discerning gourmands and the cheapo fanny-packers. Let them enjoy that $7.77 buffet special and Rat Pack tribute show at The Plaza while I take in a dinner at Border Grill or Sinatra before I see Bette Midler or the new Cirque show.

Variety is the spice of life, so there's no reason why Old Vegas can't coexist with New Vegas. There's enough room to keep the kitschy themes and cheapo experience alive Downtown as The Strip keeps it classy with a continual upscale transformation. So can we all just get along and be free to experience whatever Vegas fantasies we want? ;-)

Vegas Is Losing Its "Theme". Should We Mourn Its Loss?

Today's Sun article really got me thinking about just that. The "theme casinos" now look to be a thing of a past, or at least on The Strip. Downtown's still as kitschy as ever, and some see it as a good thing.

So are the "theme casinos" just distant trashy memories of the past that should be left there? Or are we losing some genuine parts of Vegas with every Strip casino that's renovated and "de-themed"?

I guess I'm somewhere in the middle here. On one hand, I LOVE the design of Wynn & Encore. Hands down, they're my favorite Strip casinos. The gardens inside relax me, and the gaming "rooms" give the casino a nice, intimate feel.

I'm also excited about CityCenter. A number of the buildings were just awarded LEED Gold for their eco-friendly design, and the architecture really proves that Vegas has "grown up" and become a truly sophisticated destination.

But on the other hand, I'll also admit that I have a special place in my heart for Fremont Street and the old "grande dame" casinos downtown. Yes, they're mostly kitschy and trashy... But they're also Vegas history and it would be a shame to ever lose them.

Maybe I'm being too Goldilocks here, but I do think there's a "just right" balance between the old and the new for Vegas that I hope we can achieve and sustain. I personally don't miss the cheap buffets and lousy hotel accomodations at all, but there's some redeeming value in downtown that I'd never want to lose. I also sometimes feel that MGM Mirage and Harrah's have gone too far at times in redefining The Strip and making way too many Strip casinos just generic, but at the same time I hope more residents and "old timer" visitors also open their minds to the new "Haute Vegas" of The Strip at the casinos that have done it right (like Wynn/Encore, Caesar's, and Mandalay Bay).

So do you agree with me? Or am I missing something here? Go ahead, let me have it. ;-)

Urban Living & Why It's OK to "Luv-It"

Hey, I might as well weigh in on the controversy that everyone is talking about. Come on, you know what I'm talking about. Ever since "The Office" star Mindy Kaling trash-talked the downtown neighborhood where the famed Luv-It Frozen Custard is located, everyone in Vegas is talking about the merits of urban Las Vegas living.



Is it safe to go to Luv-It at night? Are we at risk of getting mugged at the corner of Las Vegas Blvd. & Oakey? Are all of us suburbanites in Green Valley and Summerlin just too snooty to realize the good quality of life in Downtown Las Vegas? Is the inner city a scary place to avoid or the future of American life?

Now if you excuse me for a moment, I want to put aside the Mindy Kaling/Luv-It controversy and point out something else that provoked me to some more deep thinking. Over at my old stomping grounds in OC Progressive, rockstar local blogger Joe Shaw recently talked about walking around Huntington Beach, the OC city where he lives. Basically, it's difficult to walk around his walled-off suburabn neighborhood. But in downtown, the streets all have inviting sidewalks, stores of all sorts are nearby, and residents there can easily walk around.

OK, so Downtown Surf City isn't exactly Downtown Vegas. Regardless, Downtown isn't as scary as some would imagine it to be. I just stayed at a friend's house near 9th & Oakey las weekend. I never feared for my life or my possessions.

Is it possible that so many of us have become so accustomed to the perfectly manicured Anthem roads and far off Silverado Ranch strip malls that we've forgotten what real city living is like? Sure, maybe I myself am somewhat of a hypocrite about this. After all, I live in the master-planned nirvana that is Green Valley.

But hey, I'm trying. My neighborhood actually is quite walkable. And if I can't walk to where I need to go, RTC bus service out here isn't too bad. All in all, I actually think Green Valley made some good first steps that can ultimately lead us to a brighter suburban/urban future.

There's been plenty of debate lately on the merits of New Urbanism. Many new urbanists see a possible future in places like Inspirada. However, others just see developments like these as lame excuses for the real urban living one can find Downtown.

Sometimes, I do feel guilty about my life in Henderson. Aren't I the one who's always crowing about sustainable living? Well, at least I'm doing my part to make it work in the 'burbs. And perhaps with smarter planning in the 'burbs and more sustainable living on our part, we can make it work... Even in Henderson and other outer reaches of The Valley.

But in the mean time, perhaps those of us in the 'burbs should think twice before bashing the inner city as "sketchy". Take a walk around the neighborhood just east of Las Vegas Blvd. near Luv-It. Do the First Friday Art Walk next month. Notice how walkable the area is, how close the shops are, how the arts scene is flourishing here, and how engaged and connected the community is. What's so "sketchy" about that?

Yes, Downtown does have crime problems and other problems that don't need repeating in other areas. And sure, we shouldn't all be forced to move Downtown. However, we'd be foolish to completely overlook what's gone right downtown. We'd be foolish to dismiss the lessons we can learn from these city neighborhoods that can help us live more sustainably, even out in the 'burbs.