City settles lawsuits over downtown land

Thursday, July 24, 1997 | 10 a.m.

The city of Las Vegas has settled two of three remaining lawsuits stemming from a 1993 land grab to pave the way for the Fremont Street Experience parking garage.

The city will use $6.1 million from casino operators who benefited from eminent domain proceedings. Those proceedings took the land at fair market value for the large red parking garage accompanying the $70 million Fremont Street canopy and light show.

Former U.S. Sen. Chic Hecht will receive $4.1 million and swap a downtown building that currently houses the soon-to-be-defunct Woolworth's store for yet-to-be-named property valued at between $3 million and $3.95 million.

Mayor Jan Laverty Jones said plans are to use the old Woolworth's property for new retail development.

The Ray family estate, which owned a parcel about equal in size and next to Hecht's Fremont Street land, will get $2 million.

"My father bought the land 50 years ago, and we (the Hecht family) have never stood in the way of progress," Hecht said. "When I came here in 1946, the tallest hotel stood two stories, but things change and you have to go with it.

"Las Vegas now will go ahead with one of the most dynamic downtowns in America. We (Hecht and his brother and sister, who will split the settlement) feel happy and we wish the city well."

Hecht also agreed as part of the settlement that comes up for full council approval Monday to receive from the city $230,000 a year -- the sum Woolworth's will pay the city annually for the lease, which has 5 1/2years left -- until a property swap is finalized.

"I think we reached a very good decision and can go on," Las Vegas Mayor Jan Laverty Jones said, noting that the realistic choice faced by the city was to either give $6.1 million to "upstanding Las Vegas citizens or to lawyers."

Jones was referring to the three Fremont Street Experience eminent domain cases currently bogged down in appellate courts -- Hecht's suit, the Ray estate action and a lawsuit brought by Harry Pappas.

The city has appraised Pappas' Carson Avenue property at $480,000. He wants $11 million. Jones said no offer is on the table and the matter will have to wind its way through the court system.

"We have no interest in paying $11 million for that property," Jones said, noting that the settlements with Hecht and Ray are not an admission that the city illegally took private land or misused the power of eminent domain.

At a Wednesday news conference to announce the deal, a reporter asked Jones if the city would entertain a $4 million offer for Pappas, similar to what Hecht is getting. She said no.

The deal, which includes paying the Hechts' and Rays' legal fees, comes on the heels of the city scrapping a proposed ordinance that would have capped the amount of money downtown casino owners would have had to spend on the legal settlements.

Taxpayers could have shelled out a sizable amount had the bill passed.

Asked why he thought it took so long to reach a settlement, Hecht said, "I've been in politics for 35 years, and these matters have to take time because public money is at stake."

City Attorney Brad Jerbic noted that in settling with the two parties, the city can go forward with revitalizing the downtown area and recoup from casinos the $6.4 million it had spent to acquire other properties in the way of the Fremont Street Experience.

Jones said she believes the casino owners, which comprise the Fremont Street Experience Ltd. Liability Corp., would OK the settlements and pay them.