Henderson stadium fiasco ends with developer’s banishment

The rocky relationship between the city of Henderson and Chris Milam ended with little drama Tuesday as the Texas developer agreed to bow out of a federal land deal and never again do business in the city.

Milam had promised to build an arena in the city on 480 acres of federal land that he hoped to buy but will end up signing a settlement that ends a messy legal dispute with the city. Henderson’s lawyers expect Milam to sign off on the settlement within the next day, with paperwork to officially be submitted in court Thursday morning.

The city sued Milam and four of his consultants. It alleged fraud and conspiring to create a bait-and-switch land ruse. The city alleged Milam plotted to buy the Bureau of Land Management site and flip the land to homebuilders instead of developing an arena complex.

“It’s a good resolution,” Henderson City Attorney Josh Reid said after lawyers for both sides presented the settlement to District Court Judge Susan Scann. “We think it’s a beneficial settlement for the city.”

Terry Coffing, Milam’s lawyer, said his client denied the fraud . Coffing said Milam is saddened someone else may build the arena .

Milam’s lenders, Texas-based Rockafellow Investments LLC and II C.B. LLC, are in position to assume control of the 480 acres if they pay the city $250,000 by Friday to cover its legal costs. They also must pay Henderson $4.25 million before acquiring a U.S. Bureau of Land Management patent. Nonpayment would cause the land to revert to the BLM, which would keep $2 million that Milam used to make a deposit.

The lenders can close on the BLM property within 45 days of March 28. They loaned $16 million to Milam, who used $10.5 million to make a winning bid to acquire the BLM site. The money sits in escrow.

One of the city’s lawyers , Dennis Kennedy, said the lenders’ representatives indicate they probably will take possession of the property and sell it to developers.

The city said Milam previously approached officials about a settlement but backed out or made unacceptable offers. The project’s lenders then became involved in discussions .

Any owner must comply with the city’s zoning for the site, which specifies a stadium or arena use.

The settlement contains a provision that Milam is not welcome to do any business in Henderson.

After falling short on plans to build in Las Vegas, Milam approached Henderson in mid-2011 with a proposal to build a four-venue complex. But on Nov. 28, 2012, Milam told city officials the sports facility project was not feasible.

Milam, however, still wanted to buy the land and had circulated promotional materials advertising the site for residential development.

That triggered the city’s lawsuit, which alleged Milam and his four “confederate” consultants committed fraud by misleading the city when he planned to flip the land all along.

Kennedy said he expects two other co-Milam defendants, Henderson lawyer John Marchiano and public relations specialist Lee Haney, to sign off on the settlement. But Kennedy said he does not know whether Mike Ford, a former BLM official hired by Milam to push the deal, will settle.

Contact reporter Alan Snel at asnel@reviewjournal.com or 702-387-5273.