Developer’s ties to Kenny spur scrutiny

KINGMAN, Ariz. -- The Arizona Corporation Commission is expected to ask Nevada developer Jim Rhodes and former Clark County Commissioner Erin Kenny to testify about their relationship.

State officials are considering Rhodes' applications for permits for utility companies that would serve the master-planned community Rhodes wants to build in Golden Valley, 107 miles southeast of Las Vegas.

Administrative Law Judge Dwight Nodes had been close to issuing his recommended order on the application, but two Arizona Corporation Commission members asked that the hearing be reopened because of testimony Kenny provided in the criminal trial of real estate consultant Don Davidson.

Kenny told jurors in late June that Rhodes had paid her a little more than $200,000 a year for business consulting services.

Kenny, who sold her votes for tens of thousands of dollars when she held office in Las Vegas, served as a government witness in public corruption cases and is to report to federal prison by Sept. 18 to start serving a 30-month term for conspiracy and wire fraud.

Rhodes provided an affidavit to the Corporation Commission this month explaining that Kenny no longer works for him and that she was never involved in the Arizona utility companies.

Commission spokeswoman Heather Murphy said Nodes ordered the utility hearings reopened Monday, indicating that the Rhodes affidavit is fair game for scrutiny. "The affidavit represents testimony for which cross-examination is necessary for due process, meaning the other parties would have to have the opportunity to explore the testimony that was provided in the affidavit," Murphy said.

Contacted Monday while vacationing in California, Rhodes spokeswoman Lisa Urias had no comment on the reopening of the hearing.

When he submitted the affidavit, Rhodes lawyer Jeffrey Crockett had argued that reopening the case was unfair and unnecessary.

Murphy said: "There's a very high likelihood that the commissioners, the parties and/or the judge may want to hear from Ms. Kenny and Mr. Rhodes on this topic. Ms. Kenny is not before the commission for any purpose other than to probe the relationship between she and Rhodes. I don't know how satisfied the commissioners will be in hearing just from Mr. Rhodes and his representatives."

Nodes scheduled a conference for Friday in Phoenix to establish a schedule for hearings.

Nodes said in his order that Rhodes indicated his willingness to appear again before the commission when he provided six hours of testimony in support of his utility application in March.