Two days after new casino buyer Larry Flynt halted the opening of his Lucky Lady at the former Normandie Casino July 18, the City of Gardena backed off its demands of additional monthly taxes and gave the adult entertainment mogul the economic package he desired.
By unanimous vote, the Gardena City Council on July 20 agreed to remove a minimum $800,000 monthly tax provision required of the Normandie and Flynt’s other Gardena casino, the Hustler.
Two days after new casino buyer Larry Flynt halted the opening of his Lucky Lady at the former Normandie Casino July 18, the City of Gardena backed off its demands of additional monthly taxes and gave the adult entertainment mogul the economic package he desired.
By unanimous vote, the Gardena City Council on July 20 agreed to remove a minimum $800,000 monthly tax provision required of the Normandie and Flynt’s other Gardena casino, the Hustler.
The monthly provision was a last-minute addition by City Manager Mitch Lansdell to the terms originally agreed on between the City and Flynt.
Flynt purchased the Normandie Casino in early July for an undisclosed price, when its previous owners, the Miller Family, was forced to sell the business after pleading guilty to shielding several high rollers from federal reporting requirements and violating the Bank Secrecy Act.
Flynt agreed to purchase the Normandie for an undisclosed price, according to state gambling authorities. Part of the purchase included keeping the Normandie’s 400 employees.
Dozens of those Normandie Casino employees showed up at Wednesday’s special meeting to plead with City officials to meet Flynt’s requirements. Council had voted 3-1 to require Flynt to pay the minimum tax guarantee. Councilman Dan Medina, who had previously worked at the Normandie Casino, was the lone approving vote.
His council mates reversed their decisions Wednesday, after listening to numerous Normandie workers plead for their jobs.
One employee suggested that without jobs, crime would be on the rise and the streets of Gardena would be less safe for citizens.
In his refusal to agree to the City terms with the late-hour, added provisions, Flynt called the deal “foolish.”
He said he won’t sign any final agreement enforcing tax requirements or other changes. And added that the city’s tax structure would make it “impossible” to get a return on his investment.
“I’m no fool. I’ve never heard of a deal like that,” Flynt argued. “I acted in good faith.”
He said that in the 16 years he has done business in Gardena, he has paid $80.5 million.
“You would think that somebody that has done that much for this city, and got so little in return, it’s easy to see that I feel like I’m treated like a second-class citizen,” he said. “And I don’t like it one bit.”
Had the council continued to stand in Flynt’s way, he vowed earlier that he would work to bring in council candidates who were gaming friendly.
Flynt said he plans to invest $60 million into the Lucky Lady over the next four year, for renovations and promotions. Sixteen years ago when he built the Hustler Casino, he invested $30,000 in the startup club.
He also has plans to build a hotel and shops adjacent to the Lucky Lady at the corner of Rosecrans and Vermont avenues.
