Council approves golf deal with MGM Grand

Jace Radke

Wednesday, Aug. 26, 1998 | 10:37 a.m.

Having dealt with 200 citizens whose loud opinions seemed evenly split on the issue, and as the clock ticked toward midnight Tuesday, the Boulder City Council unanimously approved an 800-acre lease agreement with MGM Grand to build two golf courses.

The 40-year lease agreement, which can be renewed for 30 more years, is for land that includes popular hiking and biking trails near the interchange of U.S. 95 and U.S. 93.

Residents wishing to be heard and seen filled the City Council chambers and an adjacent hallway.

Supporters and opponents of the golf courses became raucous at times, forcing Mayor Bob Ferraro to call for order several times during the three-hour meeting.

Concerns of those against the development included the leasing of land to a company involved in gaming (Boulder City is a non-gaming municipality), whether the city was getting enough compensation for the land, the loss of hiking and biking trails and whether the golf courses would bring in new housing developments to crowd citizens.

"I'm against it because down the road the MGM will try to get gambling into Boulder City when our charter expressly prohibits it," said Russ Nixon, a 20-year resident of Boulder City.

The lease states that the MGM would pay $750,000 annually to lease the land once the courses are built, and that there will be no gaming activities to conflict with the city's charter. Also MGM Grand spokesmen said that there would be no housing developments on the 800 acres.

"The city is really getting a killer deal," said Doug Lee, a Boulder City resident and member of a group developing another golf course in Boulder City. "In 10 years the city stands to make $5.5 million just off the lease agreement.

"This is a lot more than golf courses in Las Vegas pay for these agreements. The Angel Park Golf Course (in northwest Las Vegas) payed only about $150,000 in its first 10 years."

The Council also unanimously passed a development agreement between the city and MGM for the golf courses. A water service contract agreement was also passed, but by a 3-2 vote. Councilmen Robert Kenneston and Bill Smith voted no on the water contract because of concerns about the amount of water that the city would have to tie up for the golf courses.

The city will set aside 900 acre feet of water a year for the MGM development, but that does not put the city close to going over its water allotment, city staff said.

Councilman Bryan Nix moved for all three items be passed.

"This is an opportunity to create an image for the town that will be respected throughout the state and the country," Nix said. "There are so many things that need to be done in town, from finishing ballparks to beautifying downtown, and this is where some of that money can come from.

"There are people opposed to this, but we've answered every question that has been raised about the project. Those that still oppose it are people that will feel that way no matter what we do."

Pat Grace, Boulder City resident supporting the lease, said that residents should not worry about the city becoming overcrowded or allowing gambling because of the lease.

"It is an opportunity to take a big leap forward," Grace said. "We're letting the lion come over the hill, but we've still got a big leash on it."