Station Casinos, Culinary Clash on Casino Plan

Nevada’s powerful Culinary Union is working to halt a proposed new casino development planned by Station Casinos. Station has owned the development site on Durango Road (l.) in Las Vegas for more than 20 years.

Station Casinos, Culinary Clash on Casino Plan

Station Casinos, Nevada’s biggest locals gaming operator, wants to build a casino resort on Durango Drive near the Las Vegas Strip. But the state’s powerful Culinary Union—which has crossed swords with Station many times in the past—is trying to block the development.

The union says it’s speaking for residents of the area who are concerned about public safety and traffic congestion. Station Casinos argues that the project will create thousands of jobs and generate millions of dollars for the community. But the Spring Valley Town Advisory Board has already voted in favor of the project, which must also be approved by Clark County Commissioners. Their decision is expected this week.

Station Casinos and its parent company Red Rock Resorts have repeatedly spurned attempts by the union to organize its workers. Recently, the National Labor Relations Board accused Station of using the pandemic as a way to undermine union efforts. That squabble ended up in federal court case in July, where a judge ordered the operator to recognize the Culinary Union. Culinary Secretary-Treasurer Geoconda Argüello-Kline called the decision “extraordinary and vindicating.”

Station gave as good as it got in August, when it staged a protest outside Culinary headquarters. About 100 employees waved signs saying, “We Despise Union Lies,” and “Station Benefits: FREE Health Care, Medical Centers, Retirement Plan.”

The new casino would be built on a 71-acre plot that Station has owned for more than 20 years, reported Vegas Slots Online. It would include a 99,000-square-foot gaming floor, 20,000 square feet of dining space and a 400-room hotel.

The Culinary’s latest salvo is a postcard campaign sent to residents questioning the project’s “neighborhood suitability” and its place near a local elementary school, reported Fox 5-TV.

A Station Casinos representative provided a comment saying that it appreciated residents’ input and support for the project. The company said the new hotel would be a “community partner,” create jobs for locals and generate business in the area. Station also characterized the unions campaign as “harassment” and “petty politics.”

“It is unfortunate, but we are not surprised, as we have grown used to decades of endless harassment by the Culinary Union. Instead of applauding a project that will pay millions in local taxes, create a beautiful new amenity for the neighborhood and create thousands of construction and permanent jobs, including jobs for people they supposedly care about, they take the low road and play petty politics. Nothing that comes from the Culinary Union can be trusted,” the statement said.

In related news, Station Casinos has no plans to open any of its three closed properties this year. Company executives will consider reopening the Fiesta Henderson, Fiesta Rancho and Texas Station “if and when we think they can add to the absolute profitability of the company going forward,” CEO Frank Fertitta III told investors on a July 28 earnings call.

As for the planned Durango Station, to be located on a 71-acre site at the 215 Beltway and Durango Drive, Red Rock executives have previously said they expect the project to start construction in the first quarter of 2022 and that it would take 18 to 24 months to complete the 100,000 square-foot casino.

“From a development standpoint, the property should resemble Red Rock Resort’s (RRR) core culture, as opposed to the Palms, which is better aligned with the company’s strengths,” said J.P. Morgan gaming analyst Joseph Greff. “RRR expects the sale of Palms to close by year-end, which should help deleveraging, with year-end net-leverage at two to two-and-a-half times. RRR emphasized the desire for a strong balance sheet for investment opportunities. Looking ahead, there is no significant desire for large-scale mergers and acquisitions and management sees ample organic opportunities in its portfolio.”