SPARKS -- After two votes, a lawsuit and the threat of a lawsuit, the Sparks City Council has approved construction of a new Lazy Eight resort and casino north of town.

Developers Harvey Whittemore and Peppermill Casinos sued the city for $100 million last month after the council rejected the development.

The lawsuit produced a private vote in favor of the settlement, which Attorney General George Chanos said was illegal. He told the council to address the issue in a public vote or in a court fight with his office.

The council voted late Wednesday to uphold the settlement with the developers.

Councilwoman Judy Moss, who voted against the project the first time but favored the settlement, again voted for the settlement.

Council members John Mayer and Phil Salerno remained opposed. Mike Carrigan and Ron Schmitt favored the casino and the settlement.

About two dozen citizens opposed to the casino suggested the council hire a lawyer to review the $100 million suit before settling.

"I'm asking for a second legal opinion just like you would get a second medical opinion if you were

to get open-heart surgery," casino opponent Jeannie Adams said.

Mayer and Salerno voted for a motion to hire outside legal counsel to review the case, but Moss, Carrigan and Schmitt voted against it. The vote on the settlement split the same way.

City Attorney Chet Adams advised the council not to hire another lawyer and seemed to take the suggestion personally.

"It would be against the public's interest," Adams said. "You don't see me asking for new City Council members when I don't like the way they vote."

The developers say they have the right to build on Pyramid because a 1994 agreement to build the Red Hawk golf and housing community includes a casino and says it can be moved outside Red Hawk if it's not built there.

Stephen Peek, a lawyer for John Ascuaga's Nugget, said developers' claims for damages were frivolous and that the 1994 agreement is not as solid as the developers make it sound.

"You are being misled if you are being told otherwise," Peek said. "This case is defensible."

Nugget executives who oppose the Lazy Eight, including Chief Executive Michonne Ascuaga, said they have offered legal assistance to the city to fight the lawsuit but have been rebuffed.