Hamdog's gaming expansion passes first test

Hamdog's Restaurant in Gardnerville got the green light from Douglas County planning commissioners on Sept. 8 to proceed with plans to expand the establishment's gaming area.

Planning commissioners voted 4-1, with Bob Conner voting nay, to approve a special use permit and two zoning map amendments that would convert 6,630 square feet of general commercial space in the Meadowdale Shopping Center into a tourist commercial zone with a gaming district overlay.

Planning commissioner James Madsen was absent from the meeting, and planning commissioner Rick Ross abstained from the vote because he's employed by a casino.

Hamdog's currently has a restricted use gaming license that allows a maximum of 15 slot machines or video poker machines. New zoning would allow the restaurant to obtain an unrestricted gaming license; however, the special use permit was approved with the condition that no more than 50 gaming machines be used at the location.

Owner Greg Sayabalian said plans are to absorb an adjacent 2,190-square-foot suite vacated by Valley Christian Fellowship and to convert it into a separate bar and gaming area for smoking customers. Sayabalian, who started Hamdog's 15 years ago in the same location, said the expansion will help bring back customers lost by the 2006 Nevada Clean Indoor Air Act, which banned smoking in food areas.

"We had to choose whether to stay a restaurant or a stand-alone bar, and we stayed the course as a restaurant," Sayabalian said. "In turn, we did lose smoking customers, and we lost gaming proceeds that helped cover our overhead. We are a 24-hour restaurant - when our income goes down, our overhead does not."

Hamdog's currently occupies two suites that total 4,440 square feet. The addition would house three bar slot machines and 24 sit-down machines, plus the restaurant's existing pool tables. The area presently occupied by the pool tables would be converted into additional dining room space. Extra slot machines would be placed in the restaurant, though the space would remain nonsmoking. One door near the restaurant's entrance would connect the nonsmoking and smoking areas.

"I want the community to see I'm expanding," said Sayabalian. "I want people to know there's still one business expanding instead of closing."

"It's nice to be helping an already existing business take over an empty spot in a pretty empty shopping mall," Gardnerville resident Linda Kleiner said during public comment.

But Conner, who voted against the request, argued that helping Hamdog's would hurt other local casinos.

"I don't see the need to expand and take away from existing businesses," he said. "I don't see the burning need, especially in today's economy. There are only so many locals."

Planning commissioner Lawrence Howell said the applicant was simply responding to the state's smoking ban, which negatively affected his business. Howell said there was no evidence the change would detrimentally affect others.

"It's a business owner trying to compete locally," he said.

Planning commissioner Kevin Servatius, who supported the request, pointed out that an unrestricted gaming license is a valuable asset, which can be sold and transferred to another location.

"I hope the special use permit will be enforced," he said.

Deputy District Attorney Cynthea Gregory said the special use permit will stay with the applicant, but is limited to the location. An unrestricted gaming license, issued by the state, could be transferred to another tourist commercial zone if the business is sold.

"It's only our business if it gets into another area of a special use permit," said Howell. "We can't worry what happens with the license. In my opinion, it's really none of our business."

Planning commissioners also raised concerns about setting precedent, perhaps encouraging other local bars and restaurants to seek permits and zoning changes.

"I've never seen two exact applications," said Gregory. "We'd have to look at the location and type of business."

Community Development Director Mimi Moss said Sayabalian has been discussing options with the county for two years.

"We've been back and forth on how we can help expand his business and his customer base," Moss said. "This is the only alternative possible based on code."

On Sept. 1, the Gardnerville Town Board unanimously approved Sayabalian's request. It will go before county commissioners in October.