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Judge Orders Mediation for Binion Horseshoe Dispute

LAS VEGAS -- A District Court judge refused Wednesday to order the Clark County sheriff to seize $1.8 million from Binion's Horseshoe to cover past-due monthly assessments to the company that runs Downtown's Fremont Street Experience pedestrian mall.

Judge Gene Porter ordered Binion's and the Fremont Street Experience to meet under the supervision of District Court Judge James Mahan to try to settle the dispute over the $1.8 million in late payments.

The Fremont Street Experience LLC filed an August lawsuit against the hotel-casino, charging the Horseshoe with failing to make full and timely payment of monthly membership fees since 1998.

Horseshoe owner Becky Binion Behnen, who acquired majority ownership of the property from brother Jack Binion in July 1998, attended the Wednesday hearing but referred questions to Horseshoe lawyer Douglas Gardner.

Garner declined to comment on the case.

Fremont Street Experience lawyer Pat Reilly had asked the court to order a prejudgment writ of attachment for the overdue $1.8 million, noting that the Horseshoe's contractual obligation to pay its monthly assessments to the downtown association was unsecured.

State law allows for the seizure of funds before a case goes to trial, Reilly noted.

"There is a real danger my client may not be paid," Reilly told Porter.

Gardner asked the judge to deny the request to seize the money, noting that the Horseshoe has legitimate reasons for not paying the overdue assessments.

He said that the Fremont Street Experience was poorly managed, that its refurbishing activities block entrance to the Horseshoe and that the pedestrian mall's vendors compete with vendors inside the hotel-casino.

Porter wasn't impressed by the Horseshoe lawyer's argument.

"I don't think much of the (Binion's) counterclaim," Porter said, but then said he was also reluctant to order the $1.8 million attachment.

"What is the emergency?" Porter asked Reilly. "You're asking me to do a major thing. Because of the magnitude of what you're asking, I'm going to ask both parties to sit down with Judge Mahan (for mandatory court-surpervised mediation of the dispute.)"

Reilly said that if the two sides are unable to reach agreement in mediation Porter would rehear on Jan. 28 the request to attach the overdue $1.8 million.

Fremont Street Experience President Mark Paris said that the mall's management board sued only after funding shortfalls caused the cancellation of three summer and fall events last year.

Paris attended the hearing along with general managers from three other downtown casinos, all also assessment-paying members of the Fremont Street Experience.

The Fremont Street Experience is run by a board made up of representatives from most of the major downtown hotel-casinos.

The monthly assessments paid by the properties are used to retire the debt used to build the Fremont Street Experience video-display screens and supporting structures, and also to pay for marketing Fremont Street events, security, maintenance and administration.

The Horseshoe, an original member of the Fremont Street Experience LLC, was obligated to pay monthly assessments of $81,029 last year, the lawsuit noted. Monthly assessments in prior years were: 1999, $81,657; and 2000, $78,739.

Paris said that this year's Fremont Street Experience budget assumes that the Horseshoe will make its required payments.

If the property continues to miss its required assessments, Fremont Street Experience event cancellations will follow, Paris said.

Four Queens President and General Manager Phil Madow, speaking after the hearing, said canceled events have a negative impact his property.

Madow disputed Gardner's criticism of Fremont Street Experience management, complementing Paris and his staff for their efforts to revitalize Fremont Street.

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