Cozy ties, shaky deal reeking in Henderson

Small town, Henderson.

Whether it's business or politics, on most days in Henderson it seems everyone knows just about everyone else. But that's a small town for you.

The close proximity between business and government is part of what makes the implosion of Chris Milam's sports stadium pipe dream so intriguing - and so disturbing. Because almost everywhere you look - the Henderson City Council, the law office of Milam's lawyer former City Attorney John Marchiano, and the experienced federal land consultants at the firm of Abbey, Stubbs & Ford - you find connections. At best they define the coziness of a small town.

At worst, they're downright incestuous, highly unethical, and possibly criminally fraudulent.

Despite a track record of nonsuccess that might have raised red flags in some jurisdictions, Milam managed to woo Henderson officials with a super-colossal plan to build a professional sports stadium on 480 acres controlled by the Bureau of Land Management. Once he reached an agreement with the city, it placed the land in nomination with the BLM with Milam as the preferred bidder. The sale price was $10.5 million.

Escrow was supposed to have closed today. (In the wake of the allegations leveled in the city's lawsuit, it was extended to March 28 - 10 days after attorneys for Henderson and Milam will meet for an evidentiary hearing in District Court.)

Milam's trouble is simple: It's increasingly clear he lacked the personal resources to construct a kid's soccer complex, much less a stadium capable of showcasing a professional franchise.

Not that he failed to talk a good game or surround himself with the best juice lawyers and PR operatives his money could buy. Then again, if talking a good game equated to success, Milam would be a billionaire.

For some reason, the fact his previous big ideas in Southern Nevada had busted out didn't frighten off Henderson officials.

Performing due diligence on the double after being named Henderson city attorney a year ago, Josh Reid was clearly jolted by the Milam group's notification that the land would be used for a purpose other than that stated in the agreement. It was a slap in the face not only to the rookie city attorney, but also to anyone in the valley who dreams of an honest representative government.

The ongoing litigation raises considerable issues about how business was being done in Henderson, where Marchiano is well-known not only for lobbying city officials but also for using his business connections to fill their campaign coffers.

One reliable source reports Marchiano bragged he was due to make more than $500,000 if the land sale went through. (Marchiano didn't return a call seeking comment.)

Were some lazy public servants rocked to sleep by their political moneyman?

Say it ain't so.

Marchiano has already been accused of admitting to officials that his client lied about his real development plans. It's a charge the attorney has denied, but Reid isn't backing down.

"I think we have a problem with people who feel they can lie to government officials and get away with it," Reid said Tuesday. "The city of Henderson wants to send a message that it's not OK to lie to government. We will hold people accountable who misrepresent themselves to the city."

If you think Marchiano's presence feels a little too close for comfort, meet BLM land transfer specialist Mike Ford. He's also accused of attempting to profit by playing on both sides of the issue. As the Review-Journal first reported, Ford enjoyed the financially enviable but ethically shoddy position of playing the consultant for Henderson and Milam. By one account, Ford stood to make $1 million in fees once Milam's deal closed.

That's outrageous enough on its face, but Ford's partner is former BLM Director Bob Abbey. At this point, I suggest you buckle your seatbelt.

On the enthusiastic recommendation of Senate Majority Leader Harry Reid, the future city attorney's father, in 2009 Abbey left the land consulting firm he co-founded in 2005 with Ford and Barry Stubbs to become the director of the BLM. With 34 years of state and federal experience, Abbey seemed qualified for that top duty.

With the Milam project under scrutiny at the BLM, Abbey retired from the directorship on May 31 and in June rejoined the Southern Nevada land consulting firm.

So much for the quaint concept of a cooling-off period for federal officials. Abbey's retirement cake didn't even have time to get stale.

While his proximity to this shaky land hustle might not technically violate an ethical guideline, it has invited scrutiny from the Department of the Interior inspector general's office and quite likely the Department of Justice.

Were Henderson officials actually dazzled by Milam's big vision? Did they catch the strange "sports stadium fever" that has infected our local governments and corporate titans in recent years?

That might be the most they can say for themselves as this troubling affair develops.

The best the dubious developer and his consulting cronies can hope for is to fold their reeking hand. This deal has busted out, taking the credibility of the inside players with it, and Milam's losing record in Southern Nevada remains intact .

It makes me wonder whether Henderson is one small town that will never be the same.

John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295. He also blogs at lvrj.com/blogs/Smith