Vol. 3, No. 3
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December 1, 2005
Nevada's Online State News Journal
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CRIMINAL DEFENSE |
COPYWRITING
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Feature Story:
Special Counsel Named In Land Deal, Chanos Involved In Land Deals Also
Will The Investigation Come To An End? Will "Aroma Meadows" Be Built?
by Johnny Gunn
Nevada Attorney General George Chanos will not be investigating the land deal between Las Vegas and developer Bill Walters and instead has named the law firm of Senn Meulemans, LLP as special counsel to conduct the investigation. Some say this makes it a done deal for Walters, others aren't quite so sure.
The firm of Senn Meulemans, LLP was listed by Chanos as a San Francisco entity, but they also have offices in Reno at 50 West Liberty Street, Suite 950. According to their web site, the firm "counsels clients in a diverse range of real estate litigation, including the defense of commercial and residential developers ..." The site also says, "Senn Meulemans represents private real estate owners, public entities, commercial and residential developers." Does this indicate that Chanos has invited a large and hungry fox into the hen house?
When Chanos announced his choice for general counsel he did not go into any discussion over why that firm was chosen, nor did he go into detail on why Chief Deputy Attorney General Gerald Gardner wasn't put in charge of the investigation. These questions have been troubling to some in the legal profession who believe what is developing is a possible whitewash of the entire affair. The contract must be approved by the State Board of Examiners on December 12.
Some attorneys are in agreement that as long as Senn Meulemans is investigating the land transfers and sales, their background and expertise will probably be at least adequate. If the firm is also to be used in the event of a grand jury investigation they may be out of their league. One attorney who wishes to remain anonymous said, "I am not full of confidence about this."
If you are just becoming aware of what some are calling the "land deal of a lifetime," Bill Walters made a deal or two with the City of Las Vegas to operate a golf course called Royal Links Golf Club alongside one of the city's sewer treatment plants. A part of the deal was that nothing other than a golf course could exist on the land because of the sewer treatment plant, its obnoxious gasses, and potential for health hazards.
Walters has recently come to the city to ask for zoning changes so he could close the golf course and build homes. He bought the land for slightly more than $7 million. If homes were to be built the land would be worth, some say in the neighborhood of $35 million.
According to an investigation some members of the city staff made illegal decisions regarding the Walters' application, information was withheld from City Council, and some documents may have been altered to give a more favorable appearance to the project. The city attorney says too much time has passed and criminal charges can't be brought.
That is in dispute, there is no call at the Las Vegas level to bring the matter before a grand jury, and Nevada's new Attorney General George Chanos stepped into the picture. The deed restrictions came about because of environmental rules and laws, and some say that lifting those restrictions might jeopardize the health of someone living within 20 feet or so of the sewage treatment plant.
After saying the AG's office would immediately begin an investigation, Chanos came forward saying that he held land that is in the midst of a sale and he named Senn Meulemans, LLP, a California and Nevada firm to conduct the investigation. Chanos's property could be sold for as much as $10 million according to some in Las Vegas.
Chanos also sent a letter to Assistant Attorney General Randal R. Munn advising him of the investigation, informing him of the Meulemans firm being general counsel, and naming Munn to oversee the investigation, seeing to it, in the words of General Chanos, that "It is essential that this inquiry be conducted thoroughly, fairly, openly, and expeditiously." Chanos continued in his letter to Munn, "It is equally essential that the results of this inquiry, regardless of what may or may not be concluded, be beyond reproach."
In a letter to Las Vegas City employees dated November 22, City Manager Doug Selby seems to contradict reports that information from engineering reports was withheld from the city council during its initial discussions over lifting the deed restrictions. While what the city council received and what the full engineering report indicates are two different things, Selby says he doesn't believe the engineering group formed to assess the potential for changing the deed restrictions would do such a thing. On the other hand he doesn't indicate whether or not he might believe that someone within city government altered the report offered to the city council. In other words, in no part of his letter does Selby refute the fact that two versions of the same report were written. One for the city council, a full and comprehensive report for the files.
An investigation conducted by Las Vegas City Attorney Bradford Jerbic found that retired public works director Richard Goecke may have made some illegal decisions that were beneficial to Walters and his plans for the golf course. Jerbic said the acts committed by Goecke were allegedly criminal in nature but that the statute of limitations had run out and no charges would be brought.
Clark County District Attorney David Roger agreed. Many in the legal community around the state disagree, and many more don't understand the total unwillingness to bring the matter before a grand jury, one of the most natural things to do in a case like this.
Nothing has been discussed to implicate Walters or any of his employees. The inquiry has been aimed specifically at Goecke, former Mayor Jan Jones, and the city council that was seated at the time of the golf course lease and sale discussions. Mayor Oscar Goodman said recently the entire affair is water under the bridge and the deed restrictions should be lifted to allow Walters to build homes on the property.
Chief Deputy Attorney General Gerald Gardner told the council that the investigation will be a broad and ongoing inquiry. He said some of the allegations go as far back as 1996 and may be continuing today. It is because of the possibility that wrong-doing may still be on-going that many question the idea of the statute of limitations being expired.
One member of the Las Vegas City staff who is very close to the entire situation is environmental officer Lori Wohletz. Wohletz has criticized the decisions that led to the leasing of land for Royal Links Golf Course and the later sale of the land. According to at least one report and with homes being built as close as 20 feet from the sewage treatment plant the cost to the city would be as much as $30 million just for odor abatement.
Wohletz became so upset following the Jerbic report that she has resigned her position with the city, leaving after 11 years service. An engineering report that was critical of the plan to build homes in place of the golf course was altered when it was given to the city council according to an investigation. That report is expected to be a part of the AG's investigation of the land deal.
George Chanos was appointed to the position of Attorney General by Governor Kenny Guinn when Brian Sandoval was named to the Federal Court. He has said he plans to run for the position in 2006. The land deal that has taken him off the active part of the investigation of Royal Links involves a 3.5-acre parcel owned by Cousins Chanos LLC. The land is being sold to a developer who wants to build condominiums on the site.
Chanos said the developer in question is not Bill Walters and the deal has no connection to anything involved in the Walters/Royal Links/Las Vegas City investigation. He said he did not want the slightest perception of a conflict of interest and felt it best to remove himself from the investigation.
Although no timetable has been released by the Attorney General for the investigation to begin, Walters has already gone to Clark County for zone changes. Part of the Royal Links property is adjacent to and maybe even part of Clark County. There are no county restrictions that would stop Walters from developing adjacent county land.
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