Thursday, August 04, 2005
Copyright © Las Vegas Review-Journal

Police take over probe; Walters' plans on hold

"Obviously we're anxious to move forward. But we can't move forward until the internal issues at the city are addressed." BILL WALTERS DEVELOPER

Developer Bill Walters' proposal to build homes near a wastewater treatment plant was placed on hold Wednesday, pending the outcome of a police investigation into why unnamed Las Vegas city staff members edited an engineering impact report on the project.

Mayor Oscar Goodman told the City Council that police assumed control of the investigation on Tuesday.

The city manager's office began the inquiry last month at Goodman's request. Originally, the focus was on whether a city employee had misled one or more council members about Walters' plan, which seeks to turn the Royal Links Golf Club into a residential neighborhood.

In late July, Goodman asked that the investigation be expanded to evaluate why an engineering report on the proposed housing project at Sloan Lane and Vegas Valley Drive was edited. The edited version of the report first given to the council excluded any mention of methane and hazardous materials produced by the wastewater plant.

Goodman on Wednesday referred all questions on the matter to police.

Undersheriff Douglas Gillespie said police became involved at the city's request.

"I received some information from the assistant city manager in regards to some conduct of their employees in this particular matter," Gillespie said.

"They (city officials) had some things come up during their internal inquiry ... that they thought we, as a police agency, should look into to."

Gillespie declined to name the city employee or employees whose actions are under investigation.

"We haven't determined yet whether a crime was committed," Gillespie said.

District Attorney David Roger said the investigation deals solely with the circumstances surrounding the editing of the engineering report.

Walters is not a subject of the investigation, Roger said.

The engineering report at the center of the probe was drafted by CH2M Hill. The firm compiled the impact report on the Walters' project at the city's request, and relayed its findings to the city's Public Works department.

The version of the report first sent to City Council members was a shortened version of the first draft. When Goodman discovered that information had been omitted from the version first delivered to him and other members of the council, he requested the original document in its entirety.

Goodman said Wednesday that city staff will continue to gather information on concerns about the Walters project, including odor control, flood control and hazardous materials issues.

Before the matter was tabled by the City Council, Walters was seeking permission to convert his 160-acre golf course to residential housing.

In 1997, Walters first leased the land that carries a deed restriction prohibiting residential use. He purchased the 160 acres outright in 1999.

Under the proposal Walters would pay the city $7 million, an amount representing the residential value of the land in 1999 plus 6 percent annual interest.

Critics have called the terms a sweetheart deal because the land's value is now assessed at $64 million. Walters disputes that characterization, saying he has invested nearly $28 million in improving the property.

Walters said Wednesday that he had no knowledge of the investigation.

"Obviously we're anxious to move forward," Walters said. "But we can't move forward until the internal issues at the city are addressed."

City Councilwoman Lois Tarkanian said she won't be comfortable making any decision on the matter until questions raised by staff and the engineering reports are answered fully.

Walters already has said that he is willing to work with the city on issues raised in the engineering report. The report calls for more extensive odor emission sampling and cost assessments for additional odor control around the plant.