By Christian M. Giggenbach
Register-Herald Reporter
March 06, 2009 08:45 am
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WHITE SULPHUR SPRINGS — Amending a 1999 law to allow The Greenbrier to retain a greater percentage of gaming profits and fund a benefits package for employees could be one of the keys to finding a new owner for the 231-year-old resort.
Gov. Joe Manchin said potential suitors are now lining up for the possible sale of the four-star resort that’s owned by railroad giant CSX Corp.
“I hear there are two or possibly three legitimate companies with hotel experience that have expressed interest in purchasing the hotel; that’s my understanding,” Manchin told The Register-Herald by phone Thursday. “CSX doesn’t want to be the owners of the resort any longer.”
Manchin said he’s spoken with CSX CEO Michael Ward about the potential sale and believes the proposed legislation he is advancing to the Legislature will help facilitate the sale.
“Michael Ward has agreed that the bill being discussed is a good piece of legislation which creates options for CSX and makes it more attractive for potential buyers of the resort,” Manchin said.
The amendment is being sponsored by all four lawmakers representing Greenbrier County.
It would allow the financially troubled resort to retain an estimated increase of $8 million to $11 million in gaming revenue and also divert an additional $2 million to $2.5 million into a special Greenbrier employee benefits fund.
Resort officials previously said the hotel lost $35 million in 2008 and hundreds of employees were laid off earlier this year due to a decrease in guests.
The resort has also been mired in a year-long labor dispute over a new collective bargaining agreement. Last fall, Greenbrier voters passed a union-backed referendum allowing gaming at the hotel. The referendum was part of the original 1999 legislation.
Talks between hotel and union representatives resumed Thursday, but no significant developments were reported.
Greenbrier public relations director Lynn Swann would neither confirm nor deny that potential buyers are looking at the resort, but did say gaming consultants have completed their “initial analysis of the impact that gaming would have at The Greenbrier.”
Swann declined to comment further on what the report said.
“That analysis is a part of the broader strategic review of the resort which was previously announced and is ongoing,” Swann said Thursday. “With regard to your question of a possible sale, as the strategic review is not yet complete, all options remain on the table and no final decision has been made.”
Swann went on to say the bill being discussed would “create options” for the hotel.
“We have discussed the proposed legislation with state officials, and while gaming alone will not solve the current financial problems at The Greenbrier, the bill being discussed does create additional options to help the resort maintain its status as a world-class destination over the long term.”
Delegate Ray Canterbury, R-Greenbrier, said he believes passage of the bill could determine if the hotel keeps its doors open.
“This is not first-hand information, but from my conversations with individuals working on the bill, the hotel is only operating now because the governor has intervened,” Canterbury said Thursday. “I believe the long-term viability of the hotel depends on the passage of this bill. Apparently, there is possible deal pending for the sale of The Greenbrier with a national hotel chain.”
Canterbury said he felt “comfortable” with the bill’s proposed amendments and said it helps maintain the hotel’s integrity.
Delegate Tom Campbell, D-Greenbrier said the bill could be introduced in the House as early as Monday and was adamant about the importance of the amendments being discussed.
“Something has to be done. The whole county is hurting. This is a way to make gaming practical in today’s environment in such a way for it to be productive for The Greenbrier,” Campbell said. “The economic situation is so bad that it if we don’t take some action, then I believe the reality of the current economic conditions indicates the hotel could possibly close.”
Campbell said he has not officially heard who may be interested in the hotel, but “I’ve heard all the rumors just like everyone else.”
“I’ve heard the rumors that potential hotel chains like Marriott could possibly be interested in The Greenbrier, but I’ve also heard a dozen other names.”
— E-mail: cgiggenbach@register-herald.com
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