Station Casinos, Henderson settle Roadhouse dispute

Plans to renovate and reopen the Roadhouse Casino remained on hold Tuesday after Station Casinos LLC settled a lawsuit involving one of its properties and the city of Henderson.

The case began Nov. 18, 2010, when Sunset Station LLC filed a lawsuit against Henderson, Roadhouse Casino owner Robert McMackin and his company Marengo Inc. over an operating permit granted by the city.

Sunset Station claimed city officials had unlawfully approved plans for the Roadhouse to operate as a nonrestricted casino without having to build a 200-room hotel, which is required of other nonrestricted casinos.

According to a six-page settlement filed Monday in Clark County District Court, Station dropped its lawsuit against Henderson because the city attorney's office reversed course and agreed with Station's position.

Todd Bice, an attorney with Pisanelli Bice PLLC representing Station, said Tuesday that Station technically remained in litigation with McMackin over the status of the Roadhouse. Bice wasn't sure "how that will play out."

"The company was grateful the city was willing to take a look at it a second time," Bice said. "After they investigated the situation ... we were able to come to an agreement."

City Attorney Josh Reid stipulated that anyone wanting to reopen the Roadhouse as a nonrestricted casino will have to comply with city code and build a 200-room hotel.

The Roadhouse is on Boulder Highway and Sunset Road. Sunset Station and two nearby sister properties, Fiesta Henderson and Boulder Station, all have hotels.

Henderson spokeswoman Kathy Blaha said the City Council and mayor would not have to sign off on the settlement because "no money was involved."

"We have not heard from the (owner of the) Roadhouse," Blaha said. "It's up to them, so we'll see what they do."

McMackin was unavailable for comment Tuesday. He has argued that Station's lawsuit was an effort by the Las Vegas-based gaming company to remove any competition.

In the settlement, Reid acknowledged that the Nov. 9, 2010, approval of the Roadhouse application was an error, a result of the conditional use permit for nonrestricted gaming on the property having expired on Dec. 20, 2006.

"The city has further reviewed and investigated the facts and circumstances surrounding the approval of the application and determined that it was approved in error as there is no valid conditional use permit for the property and that any future gaming development on the property requires compliance with the existing provisions of the Henderson City Code, including the requirements for a resort hotel," the settlement said.

As part of the settlement, Station agreed to pay its own attorneys' fees and dropped its claim that the City Council and other officials violated the state's open meeting law.

Contact reporter Chris Sieroty at csieroty@review
journal.com or 702-477-3893.