Feature Story:
Royal Links Golf Club Investigation To
Continue At The State Level
Nevada Board Of
Examiners OK Pay For Outside Investigators
by Johnny Gunn
At least $265,000 will be spent to hire an outside attorney group to
investigate possible criminal action by some in Las Vegas city government in
the deals that have led to developer Bill Walters attempting to change the
Royal Links Golf Club into thousands of home sites. An investigation by the
Las Vegas City Attorney led to allegations of criminal activity, but no
charges were filed. To the consternation of many there has been no effort to
instigate a grand jury investigation either.
Nevada's newly appointed Attorney General George Chanos, a land developer
himself called for a state investigation but said it should be conducted by
outside interests so there would be no hint of a conflict of interest within
his department.
Chanos has hired the law firm Senn Meulemans, headquartered in San
Francisco but with Nevada offices to conduct the investigation. The contract
had to be approved by the Nevada Board of Examiners made up of Chanos,
Governor Kenny Guinn, and Secretary of State Dean Heller. Chanos abstained
from voting because of his land speculation activities in Clark County.
Guinn and Heller voted in favor of the contract.
Walters has indicated he will help in any way he can with the
investigation. Chanos said he believes the investigation will take as long
as six months and will be as in-depth as possible, looking at every aspect
of deals reached between Las Vegas and Walters.
Some background
In the 1990s land developer Bill Walters approached the city to lease a
piece of land for a golf course. The 160 acres sits next a sewer treatment
plant and when the city wrote the lease there were stipulations that nothing
other than a golf course could be on the land. Walters then built the Royal
Links Golf Club on the land. He was given some very good sewer reclaim water
deals because the city said, the course was a contiguous neighbor to the
sewer treatment plant.
Later, Walters came to the city and wanted to buy the land outright, and
the city allowed this with the continuing stipulation that only a golf
course could sit on the land. There were federal and local restrictions on
other uses because of the sewer plant. Walters paid slightly more than $7
million for the property.
Just recently Bill Walters has filed with the city to lift the
restrictions on developing housing units on the golf course property, and
the Las Vegas City Council actually approved the request. It was because one
city council person, Steve Wolfson asking for the issue to be brought up a
second time that information of alleged underhanded dealings had been taking
place were made public.
Information about an engineering report that was censored before being
given to the city council surfaced, and an investigation by City Attorney
Brad Jerbic was conducted. There are many in Las Vegas City Government who
are concerned about the apparent lawlessness of some so-called leaders, and
they have come to the Council and others with their concerns. Jerbic's
investigation uncovered allegations of criminal activity within city
government, but no criminal charges or indictments were issued.
Where we are now
One of those disgruntled city employees was John Redlein the assistant
city attorney who had what he considered evidence of criminal wrongdoing on
the part of Richard Goecke, now retired Public Works Director. An
investigation of Goecke and some of his activities in the 1990s also led to
the former mayor Jan Jones and some of the former city council
representatives. According to City Attorney Jerbic there were criminal acts
committed but the statute of limitations had run out and he filed no
criminal complaints.
The investigation at the behest of the recently appointed Attorney
General will consider the development, lease, and subsequent sale of the
golf course property, and city council action more recently that could have
lifted the health and welfare restrictions on the land and allowed several
thousand homes to be built next door to the sewer ponds. According to some,
if Walters is able to have those restrictions lifted the land will probably
be valued at about $35 million.
Chanos has indicated that the investigation will probably begin with
activities from the 1990s and continue right up to the current activities.
The investigation conducted by the Las Vegas City Attorney, Clark County
Sheriff, and others will be part of the current investigation.
Questions that will need to be asked include why then Public Works
Director Goecke gave special treatment to Walters in his initial lease and
subsequent sale. Was he acting at the request of members of the elected
leadership of the city at the time? Did he do it for personal gain? Are the
allegations in fact true? Another question that might come up in the
investigation is why the city of Las Vegas is so lax in its dealings with
land developers, land sales and leases, and assessments of property that is
obviously in demand? The question might also be asked of Clark County
representatives.
Chanos said when the vote to accept the contract for Senn Meulemans to
act as the investigative arm of the AG's office that he expects the
investigation to begin at the inception of what is considered the beginning
of illegal activities and continue to the present. That would include more
than one mayor and more than one set of council people.
Interestingly in this entire procedure Las Vegas Mayor Oscar Goodman has
worked to blunt the investigation on the one hand, and has said publicly
that as soon as the investigation is complete he will back Bill Walters'
proposal to lift the health and welfare restrictions on the golf course
land. Goodman was once Walters' attorney and said recently the entire affair
is water under the bridge and has no bearing on what is happening today.
According to an engineering report there are health and welfare reasons
for the restrictions for the use of the property. Methane gasses are one of
the reasons, stench is another, and the ever popular possibility of air born
cells and molecules that can lead to sickness. Some of the homes considered
could be as close as 20 feet to the sewer plant facilities.
Foul smells on a golf course are not the same as foul smells in your
living room. Illegal activities within the city government that collects
your taxes can never be condoned. At least one investigation has said that
illegal acts were probably committed. One question those that live, pay
taxes to, and vote within the city of Las Vegas might want to ask at the
next city elections is "who among these many is acting in my best interest?"
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