Reno outfit has big plans for Riviera

Black Hawk mayor David Spellman, pictured, is hanging part of his town’s future on the anticipated new owners of the Riviera Casino.

In a deal estimated at $76 million, Reno-based Monarch Casino & Resort Inc. is expected to close on the purchase of The Riv by second quarter of 2012.

Spellman calls the new ownership a win-win-win situation for the Riviera, Black Hawk and Monarch.

The casino company also is expected to close Nov. 21 on the purchase of the old sanitation site, which will enable Monarch to expand the Riviera footprint.

“In the future, there will be more than cosmetic changes,” Spellman said about the casino’s future owners. “They are coming to town because they see the city’s vision and agree with the city’s vision of creating a destination resort. I think they’re coming to compete with the Ameristar Casino.”

If that is indeed the case, it will be the first attempt for a casino company to seriously muscle in on Ameristar’s significant clout it built along with the giant casino, full-service spa and 536 hotel rooms.

“Monarch will add hotel rooms,” Spellman said. “I think it makes economic sense for Monarch to use the template of the casino they have in Reno. They’re coming here to compete and to help Black Hawk to achieve the goal of becoming a destination area.”

Spellman’s long-term vision for the historic mining town includes retail development and recreation options (think golf course) not currently available in Gilpin County.

“The Ameristar is the high-water mark,” he said. “But competition’s good. We grow the market with bigger and better properties with more hotel rooms.”

Off-track betting. The building at 231 Gregory St. in Black Hawk, across the street from the Crook’s Palace parking lot, is slated to reopen as an off-track betting parlor for horse races called The Gold Mine.

The building had previously been a casino, arcade and a medical marijuana dispensary.

An off-track betting facility has tried to make it in Black Hawk, but failed, said mayor Spellman, who added that he’s skeptical about the success of the second attempt. A single-use operation will have difficulty competing with full-service casinos, he said, reiterating his vision to grow the market with more amenities and hotel rooms.

Crook’s closed. Crook’s Palace, the fine-dining establishment that was leased from the city of Black Hawk by two brothers, closed at the end of the summer.

Crook’s tried to succeed by offering upscale food from independent chefs. But without the gaming element, the business ultimately failed.

“We would like to get a tenant in there as soon as possible,” Spellman said, who added the town won’t likely see a new business move in until after the snow-filled winter.

Spellman said his greater vision for the redevelopment of Gregory Street includes a retail district that will offer alternatives to visitors who want a diversion from gambling.

“This is a minimum five-year plan,” he said. “We will look for a developer or a joint venture partner.”

- Penny Parker is a columnist for The Denver Post. She’s always on the prowl for tidbits and tips from Colorado’s gaming communities. Call her at 303-619-5209 or e-mail pparker@denverpost.com.