New CVI owners reduce workforce for $10 million remodel

Mike Pegram, the new owner of Carson Valley Inn, doesn't beat around the bush.

"The timing sucks," Pegram said at The Record-Courier office on Wednesday.

He was referring to the Jan. 4 transfer of ownership and approximately 80 employees who will not be returning for the new year, at least not right away.

Pegram estimated that 80 percent of CVI's original 400-strong workforce, or 320 employees, were rehired under the new company, with only nine hires coming from outside the original workforce.

"We tried to do everything we could to minimize the effect," said Pegram, the majority owner in a partnership with the Carano family and Rick Murdock. "We're doing everything we said we'd do when we announced the sale six months ago. Even though the economy turned a little sour, our enthusiasm has not waned since we started. In fact, we're more excited now."

Pegram said he's hopeful that more people will be hired after CVI's $10 million makeover, the first phase of which will begin immediately.

"As construction wraps up, we will have a pit area to fill, and another bar and restaurant to fill," he said. "From a guest standpoint, we want to be as least intrusive as possible."

Bill Henderson, CVI's director of sales and marketing, said customers will still see familiar faces.

"Bill's closed at the Lake. Others have closed. CVI is remaining open under the new ownership with a serious injection of capital and improvements, and that's something we can be thankful for and optimistic about," Henderson said. "As the modeling is completed, as our marketing plan is implemented, we will need more employees. We are optimistic that CVI will be a very viable employer this summer."

Henderson said the new owners have been up-front about the status of the sale.

"The other alternative would have been to post on Jan. 4 who has a job and who doesn't," he said. "When someone comes in to take over a business it is not up to them to philanthropically support everyone in the past operating under the model that was sold. It is up to them to staff to the level of business at the time. Staffing under the new ownership, especially during construction, can not be at the same level as the old model."

Pegram said he and other managing staff will be "visible, approachable and reasonable" throughout the restructuring process.

During the first $8 million phase, expected to be completed in March, Fiona's Bar & Grill, the pit area of the casino floor and cabaret area will be closed for renovations. Access and parking around the building will remain the same. Katie's Country Kitchen will remain open 24-7 as well as the casino's slot machines, Fiona's bar, and all lodging areas.

"During remodeling, we'll be open for business," Henderson said. "Customers will constantly see new products on the floor."

The first wave of 200 new slot machines will go in immediately, Pegram said.

"It's not business as usual at CVI," he said. "We're here to produce a better product, not that the product was inferior from before, but only that times have changed and we need to bring a newness to the property."

That "newness" includes wall treatments, ceiling and carpet upgrades, new lighting, tiled entrance ways, a "refreshed" pit table games area with multiple flat-screen TVs, high-comfort chairs and a new sound system.

The building's current ventilation system is being replaced with a "fresh air" system to reduce the smell of smoke. The guest services/cashier area will be renovated, as will the existing cabaret lounge with an island bar, sports book center and more than 20 flat-screen TVs.

Fiona's Bar & Grill will be remodeled and renamed CV Steak.

"We're shooting for the first of March," Pegram said of the restaurant. "We're capitalizing on the elements that are right in Fiona's and giving it a little makeover. CV Steak will offer down-home food, good prices and an upscale environment."

Other improvements include roughly 2,500 square feet of additional storage and staging space, the removal of one of three tin sheds on the west side of the property, a green belt in the same area with a landscape buffer along Highway 395, and the erection of a new roadside sign, around the same height as the current sign, but with an electronic reader-board.

The second phase of construction will begin later in the year and focus on hotel room upgrades: Flat-screen TVs, new carpeting, mattresses and bed and bath linens.

A third phase planned for early 2011 entails a new business center, remodeled guest lobby, and upgrades to the convention and meeting rooms.

"What we're trying to do with everything is make it relevant to the Valley," Pegram said. "Without the support of the Valley, we have no chance of being successful."

Pegram said CVI will also be focusing on affordability.

"Times are tough, and we want to respond accordingly with our room rates and food specials," he said. "We're going back to the roots."