by Jeff Ping
Chapter 9
The Expansions Continue
“So I’m doing the Reno, Tahoe expansion not Vinny?” ask Mike.
“Correct, you are suited for the task much more so than Vincenzo. I mean no disrespect to my nephew but if you were of my blood, I would leave you in charge of the firm. I told you that Vincenzo told me about the favor you did him in the war. I was disappointed that Vincenzo didn’t take care of the matter himself. I need to see Vincenzo take care of a problem without your help. I have to know that the business can survive under Vincenzo’s stewardship. As it is, you and I will both have to be happy with you as Vincenzo’s second in command. Vincenzo thinks of you as a brother and recognizes your value as much as I do. Vincenzo will rely on your ability to plan as well as be his strong right arm. I just need to see that Vincenzo can deal with problems.” said Lucien.
Mike’s plan was to turn management of both of the M.E.I Vegas Casinos over to Kurt, the Manager of his first L.A. resta0urant. Mike had brought Kurt from Los Angeles to operate the firm’s first Nevada Casino. The first year he relocated to Las Vegas Kurt had married a young waitress from the Los Angeles restaurant and they now had two young sons. Kurt and his family lived in a small town east of the city of Las Vegas. Mike had been there on several occasions for dinner and had spent many weekends with Kurt and his family on Lake Mead.
Mike summoned Kurt to his office and informed him that he would be relocating to the Lake Tahoe, Reno area. Mike also wanted to discuss the new post he would be offering Kurt.
Kurt was aware of the Ari Mona difficulties but had only heard rumors of the vicious steps Mike had taken to resolve the problem.
Still Kurt was concerned, “I don’t know the details of the measures that were taken to resolve the Ari Mona situation. But I’m aware of the gossip and wild stories that revolved around it. I could never be mixed up in anything even close to that. I am not a violent man and don’t want anything to do with it. If the job will involve murder and killing, then I have to decline.”
“No, Kurt you won’t be responsible for that end of the business. I will still hold the position of Director of the corporation. I will be moving Reese Thompson to a different position than he now holds and he will be in charge of all Casino security.” Mike said
“So I will actually be working for Reese?” Kurt asks.
“No the Casino – Hotel operation will be your responsibility, separate and independent of security. Security will be operated as an independent contractor and not a direct Casino – Hotel employee.” Mike said.
“There is one more piece to this very complicated puzzle. And you might want to talk to your wife about this part. I will have three to five years in which to establish a gambling foothold in the Reno, Tahoe area. If I am successful, then I would like to bring you there temporarily to staff and oversee the hotel - casino operations there as well. You will have your choice as to which area to live, there or here.” Mike told him.
“In that position you would oversee the performance of all our Nevada Hotel managers and receive a considerable pay raise.” Mike added
Mike looked across his desk at Kurt. His face had gone ashen.
“Yes, I would like to discuss this with my wife before I give you a definite answer. If she is opposed, I will decline your offer. I will have to disclose things like the Ari Mona affair and rumors of it to her. I want her to be as fully as possible to understand the situation.”
“As I told you, security will be handled by an Independent contractor and you aren’t involved in that end. The highest threat will be to me as we initially break into the gambling operations. And you won’t be involved in that. I promise you that I won’t bring you in until I have a working operation. Why don’t you take off the rest of the day and give me an answer Monday morning.” Mike told him.
On the following Monday, Kurt made an appointment with Mike at nine o’clock. At the meeting Kurt came right to the point. Kurt told Mike he had talked it over with his wife and decided to accept the job. Kurt smiled sheepishly and said the chance of moving to Tahoe had sealed the deal with his wife. Stephanie said she would be happy to get out of this barren desert.
Mike laughed and said “I have to agree with her on that. I’m sure you will both be pleased with the pay as well. In the new position you will earn in the six digit region.”
One month later, Mike caught a plane to Reno. A week after arriving in Reno Mike and Lilly, a waitress he had met on his third day of observing the casino personnel, drove to Lake Tahoe for the day. Mike took Lilly to the best restaurants and to see the best shows in the various Lake Tahoe casinos. Lilly showed Mike around Tahoe and outlying area. Carson City caught Mike’s interest immediately. State Line didn’t impress him nearly as much as Carson City had. Lilly was curious as to the notes Mike was writing in a small book he always seemed to have in his hand.
“I told you the company I represent wants to expand into the area. I just like to take notes for myself to aid in putting a proposal together for my boss.” Mike explained.
That evening Mike peppered Lilly with questions. He wanted to know if she had skied and what there was to do in the summer. Lilly had grown up in the Lake Tahoe area and had a good knowledge of the recreational past times enjoyed by both the locals and tourists.
The following morning they returned to Reno and Lilly gave Mike a tour of the Sparks and Reno’s outlying areas. Lilly didn’t see Mike for the next three days. He had closeted himself in his room and was on the phone with Las Vegas, Los Angeles, and San Francisco. On the Morning of the third day Mike placed a phone call to Lucien and arranged a meeting. Lucien and Vincenzo arrived at the Reno airport two days later. Mike’s driver and bodyguard drove Lucien and Vinny to the hotel where he had reserved rooms for them. Then after a light lunch they drove to a smaller hotel where Mike had reserved a conference room.
Mike outlined the plan he had formulated to them both. Mike proposed that they acquire a casino in Sparks and one in Carson City.
“I’m confused Mikey. I thought that you were coming here to execute a planned expansion into Reno and Tahoe?” asked Vinny.
“The space available in Lake Tahoe town of State Line Nevada is very limited. Acquiring an acceptable property there will be extended and overly expensive. Carson City has the advantage of being more cost effective and has the advantage of proximity to the Ski areas which draw more tourist than the State Line casinos in the winter months. The cost is the primary concern in my selection of Sparks as opposed to Reno. For less than the cost of a small casino in Reno I could build a much larger and luxurious hotel casino in Sparks. And we can expand into both State Line and Reno at a later date and let the profits from Sparks and Carson City offset the cost of expansion.” Mike told them.
“You have discussed this plan with the law firm?” ask Lucien.
“Yes, your San Francisco law firm has referred me to a local affiliate of theirs here in Reno as well. I have started the application process for all of the necessary licenses and permits. Mike lifted two thick manila folders and handed one to Lucien and the other to Vinny. Here are the figures to support my plan you two can review them and let me know what you think.” Mike said.
“I am disappointed. But based on your past performance and insight, I tend to trust your business sense. I will withhold judgment until I read your full report. What do you say Vincenzo? Lucien asked Vinnie.
“I have every faith in Mikey’s financial judgment. I have and still do trust Mikey with my life, I certainly trust him in business matters.” said Vinny and reached across the table to grasp Mikes hand. Lucien and Vincenzo returned to their hotel and departed for San Francisco the next day.
One week later, Mike got a call from Vinny and Mike met Vinny at the airport four hours later.
“Mikey, let’s get a drink.” said Vinny.
“Zio Lucien wasn’t happy with your proposal. I think he had his mind set on Tahoe and Reno for the expansion. But after having his
people checkout all of the costs, he finally saw the merit in your proposal. You have a green light Mike. You can proceed immediately.”
They were sitting there when Lilly who was on shift ran up and gave Mike a quick peck on the cheek.
“Would you like a drink, gentleman?” she said with a lilt to her voice.
“Who is this sweet young thing?” ask Vinny.
“I’m sorry, Vincenzo, this is my friend Lilly Young. Lilly meet my boss Vinny Bassi. Lilly has been kind enough to show me around Reno and Sparks as well as the Tahoe Basin. Lilly explained the year round and seasonal activities.
“Gambling is the primary year round activity. But it has close proximity to three major ski areas for winter activities. And that is very important to winter time tourist draw. That information is what lead me to my proposal.” said Mike.
“I’m pleased to meet you Young Lilly Young, keep feeding Mike ideas if they are as good as the ones in his current proposal.” laughed Vinny while saying, “Just a beer for me.”
“Make that two, I’ll take the same.” said Mike.
“I’ll have to drop in and see you more often if that is an example of the ladies in Reno.” laughed Vinny.
“She’s just a local kid that was able to help me out.” Mike said as his cheeks reddened.
“Sure…sure. But don’t forget to invite Zio and I to the wedding.” said Vinny continuing to smile at Mike’s discomfort.
Several hours later and several thousand dollars later the two staggered off to Mike’s room. The next morning Mike exited his bedroom to find Vinny still asleep on the sofa. Mike called the desk and had them both a change of clothes brought up to the room from the men’s clothing store. Vinny woke up when the room service knocked at the door with the clothing. Mike went to the bedroom and changed into the new clothes while Vinny showered and dressed in his new clothes. Mike called room service place their breakfast order and gave them the previous day clothes to be cleaned and pressed.
“Pretty slick Mikey, just call for new clothes and laundry service and then breakfast is delivered right to your room.” said Vinny.
“That’s the idea Vinny, service, service, service. Nothing for the patrons to do but spend, spend and lose their money. A casino the size of ours should make a profit to the tune of 30 to 40 million per year.” Mike said.
That’s the numbers Lucien and I came up with after reading your proposal. That’s when we fully understood the extent of their ability of generating income. And we understood what you meant when you said the Sparks and Carson City casinos could help pay for the Reno, Tahoe expansion. Lucien was amazed that anything legit could produce so much money.
During the next six months Mike acquired twenty-five adjacent acres in sparks and an eighteen acre parcel in Carson City. Construction was underway in Sparks and was scheduled to begin within the year in Carson City.