Bill for Cal Neva Resort & Casino storage exceeds $200K
January 10, 2018
A collection of furnishings from Cal Neva Resort & Casino, which have been stashed away in storage, are poised to be transferred to a major creditor from an ongoing bankruptcy case for the property.
Certain resort furniture, fixtures and equipment have been locked away for more than 18 months at O'Brien's Moving & Storage in Sparks, Nev., according to documents entered on Jan. 4 in U.S. Bankruptcy Court in Reno, Nev.
During that time, the bill in connection with the storage of the items ballooned to more than $200,000. Titan Global Distribution Inc., a logistics company based in St. Louis, Mo., made the claim against debtor New Cal-Neva Lodge LLC.
"On September 27, 2017, Titan filed with the court proof of claim #39-1 ("Titan Claim"), pursuant to which Titan asserted against the Debtor a claim in the amount of $215,238.88 in connection with the storage of FF&E (furniture, fixtures and equipment," the logistics company said in a filing with the court.
However, Titan has agreed to reduce that amount to $142,594.91 in order to settle its claim against New Cal-Neva Lodge LLC. Titan is expected to receive the money via wire transfer on Jan. 10, which is the date that Lawrence Investments LLC should take control of Cal Neva Resort & Casino in Crystal Bay, Nev.
Lawrence Investments LLC, a venture capital investment firm headed by Oracle Corp. co-founder Larry Ellison, is expected to pay $35.8 million to acquire Cal Neva Resort & Casino, court documents showed.
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As for the furniture, furnishings and equipment that will all go to the largest creditor in the case — Hall CA-NV LLC of Dallas, Texas. Hall, which arranged the bulk of the financing for a multimillion-dollar renovation of the property a few years ago, stands to also receive $26,885,000 to settle its claim in the bankruptcy case.
But, much like Titan, that amount is far less than Hall claimed in the case. The details were spelled out in a compromise and settlement agreement entered in bankruptcy court on Dec. 26, 2017.
"Under the terms of the Compromise and Settlement Agreement that is the subject of the Settlement Motion, Hall has agreed to receive substantially less than it is owed from the Sale Proceeds — specifically, Hall has agreed to receive $26,885,000 plus reimbursement of the monies it advanced to Capital One," said Michael J. Jaynes, president of Hall CA-NV LLC, in a declaration in support of the agreement filed with the court.
"Hall is not being paid in full under the terms of the Settlement Agreement."
The agreement between Titan and Lawrence Investments LLC marks yet another chapter in the bankruptcy saga of Cal Neva Resort & Casino, which straddles the California and Nevada border. Debtor New Cal-Neva Lodge LLC of St. Helena, Calif., initially filed for bankruptcy in June 2016.
The bankruptcy filing was a byproduct of the spring 2013 purchase of Cal Neva Resort & Casino by Criswell Radovan, a Napa Valley-based real estate firm also doing business as New Cal-Neva Lodge LLC. The resort was later closed in September 2013 for a hyped, multimillion-dollar renovation.
"With the reopening, there will be a rebirth … it will be a totally different creature," said Robert Radovan, co-owner of Criswell Radovan, and controlling partner of the property at the time.
"Our goal is to be the entertainment center of the North Shore. The Cal Neva has always been an icon of the North Shore. With a new look and a return to a four- or four-and-a-half-star hotel … we plan to bring it back to what it was in its heyday."
That heyday included the memorable era in the 1960s, when the resort was owned by Frank Sinatra and frequented by the likes of the Rat Pack, Marilyn Monroe, members of the Kennedy family, and mob figures such as Sam Giancana.
However, a series of delays over the years pushed back the grand reopening of Cal Neva Resort & Casino to the point where it never happened. Then, in 2016, New Cal-Neva Lodge LLC filed for bankruptcy in the midst of the renovation.
Originally built in 1926, Cal Neva includes 219 rooms and cottages, restaurants, a spa, open space featuring panoramic views of Lake Tahoe, and a tunnel system Sinatra added so his less reputable buddies could move around unseen.
The property also features a 350-seat show room, 16,000 square feet of meeting space, and the Circle Bar.
For an interactive timeline of the history of Cal Neva Resort & Casino, visit sierrasun.com.
Engagement Editor Emily Kaiser contributed to this report. Staff writer Wyatt Haupt Jr. can be reached at 530-550-2652 or via email at firstname.lastname@example.org.