Sen. Reid staying out of Henderson land fray

WASHINGTON - It's the talk of Henderson, a failed land deal that has spawned a city lawsuit and a federal investigation.

But in Washington, Sen. Harry Reid of Nevada said he is steering clear of the controversy surrounding the dispute between the suburban Las Vegas community and developer Christopher Milam.

The reason? The senator's son Josh is Henderson city attorney, which he said makes it uncomfortable all around.

"My son is the city attorney. I'm not part of that deal," Reid, the Senate majority leader, said Wednesday in recusing himself. "I'm staying out of it. It makes it too awkward for me."

Reid said he has a personal opinion, but declined to share it.

Josh Reid, one of the senator's four sons, is spearheading Henderson's challenge to Milam. The city has requested a Clark County District Court injunction on the Texas developer's planned purchase of 480 acres from the Bureau of Land Management.

The city alleges Milam and four others conspired to win Henderson's endorsement of the land purchase for a city-backed sports complex only to abandon the plan in favor of housing and business development.

Attorneys for the defendants say there was no bait-and-switch but say they discovered the sports complex, envisioned as a potential home for an NBA team and a Major League Soccer club, could not be financed.

Meanwhile, the Interior Department inspector general has launched an investigation after it was reported that former BLM Director Bob Abbey and business partner Michael Ford, through their land use consultancy, stand to gain a $500,000 success fee from the completion of the transaction.

Ford served as a consultant to Milam in dealing with the BLM.

Abbey was BLM director in Nevada for eight years. Backed by Sen. Reid, Abbey was nominated by President Barack Obama and confirmed by the Senate to head the national agency in August 2009, and served there until last year.

Abbey's tenure in Washington included the time period when the Henderson land transaction was being formed. A BLM spokeswoman said Abbey had no effect on the matter.

Meanwhile, Rep. Joe Heck, R-Nev., said he has told Henderson Mayor Andy Hafen that he stands ready to help the city if needed but was not sure what Congress could do.

"Because of where (the transaction) was in the process, there was not really much that can be done at the federal level," Heck said in a brief interview last week.

"I told the mayor if he needed assistance with BLM I'm here to try to assist, but otherwise it is an issue between the city and the developer."

Heck's comments came before the inspector general's investigation was confirmed late last Friday.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmedia.com or 202-783-1760. Follow him on Twitter @STetreaultDC.