The restaurant and casino are suing Clark County and Formula 1 for the adverse effects of road construction on their operations

Clark County Officially Designates the Las Vegas Grand Prix as an Annual Event Amidst Legal Dispute Among Small Businesses

After a minimum of 10 years, the Clark County commissioners have officially acknowledged the Grand Prix as an annual event. In February 2023, a resolution was passed that removed time constraints for applications and restrictions on streets and timings for the event, as long as the race takes place the week before Thanksgiving in November. Through a statement, spokesperson Lisa Mayo-DeRiso expressed regret that Battista’s Hole in the Wall and Stage Door Casino was left with no alternative but to pursue legal action against the Las Vegas Grand Prix and Clark County. These small company owners alerted Clark County and Formula 1 to the substantial losses they incurred and the imminent danger their companies faced as a result of Formula 1. Over an extended period, they diligently pursued a fair and impartial resolution to this catastrophic issue, but without success. Subsequent assurances of a remedy never came to fruition. Their only recourse is to seek the intervention of an unbiased third party to rectify their financial losses and avert the collapse of their enterprises due to Formula 1. On behalf of Stage Door and Battista’s, attorneys from the Nevada company Holley Driggs filed a case in the Eighth Judicial District Court, contending that the modification in the approval procedure was unjust. The organizers were exempt from the need to seek a special use permit, which would have required greater prior notification to neighboring residents and active participation from the community for the 3.8-mile circuit run primarily on public roads. Instead, they were granted a special event permit that lawyers deemed unsuitable for such a significant occasion. There was no quick response from Clark County officials to a comment request. An official spokesperson for the Las Vegas Grand Prix, Lori Nelson-Kraft, said that the organization refrains from making any statements about current legal disputes.

Exclusive three-year agreement with Formula 1

The Las Vegas Convention and Visitors Authority (LVCVA) has entered into a three-year agreement with Liberty Media, the corporate entity which owns Formula 1, to continue hosting the event until at least 2025. In exchange for hosting the race, the LVCVA compensates Liberty Media with an annual payment of $6.5 million. Both parties have voiced optimism about extending the event beyond the original three-year arrangement.

Unable to provide staff with salary increases or incentives

Commencing in April 2023, road construction resulted in many street and lane closures before the event dates in November. According to Battista’s attorneys, the road construction resulted in a significant financial loss for the restaurant, however the exact amount of damages was not disclosed. Both workers and consumers experienced delays or were unable to access the site during the whole year. The complaint alleges that due to the rise in inflation and the rising cost of living, Stage Door and Battista’s were unable to provide their workers with their usual salary increases and/or incentives. Vendors and suppliers were also greatly affected, as they had to labour for additional hours in an attempt to reach the Plaintiffs’ premises, sometimes without success. In due course, some suppliers declined to provide deliveries. Garbage, typically collected on a daily basis, remained uncollected for many days. The legal action filed on Tuesday follows a similar complaint made by another neighboring casino, Ellis Island, situated on Koval Lane to the south of Flamingo Road, many months earlier. In a complaint filed on April 30, the casino claimed that it incurred losses amounting to millions due to road closures during the race and construction activities both before and after the event. Specifically, they raised objections to the temporary bridge constructed on Flamingo Road, claiming that it obstructed access to the company for an extended period of time. That legal action is still in progress.