Venetian suit claims power lines may force redesign of resort

Bill Gang

Thursday, May 14, 1998 | 9:55 a.m.

The billion-dollar Venetian hotel-casino project is being held up -- and may have to be redesigned -- because the Rosewood Grille restaurant next door won't allow the relocation of a series of power poles leading to its location, a lawsuit alleges.

The Venetian is asking that the power lines across its property be removed by Nevada Power Co. and Sprint at their own expense and relocated to make way for the Strip resort at Spring Mountain Road.

Attempts to negotiate with the Rosewood Grille for permission to relocate the lines underground or on extended poles at the Venetian's expense were unsuccessful, according to the lawsuit filed by attorney Mark Solomon.

Rosewood Grille owners were not available for comment Wednesday.

Subsequent demands that Nevada Power move the lines were rejected and construction has not begun on new power lines, the lawsuit complained.

The result is that construction work scheduled to have begun in March has been delayed and costs have soared. Completion of the resort might be affected and businesses that have contracted for space in the Venetian may be able to file claims for compensation, the legal action noted.

If Nevada Power never removes the power lines, the Venetian would have to be redesigned around the existing lines. That scenario could result in millions of dollars of costs and perhaps affect financing for the entire project, the lawsuit stated.

The lawsuit hinted that legal action by the Venetian to recoup any losses would result.

In addition to the power lines running to the Rosewood Grille, other power lines cross the Venetian property and the lawsuit seeks clarification from Chief District Judge Myron Leavitt about the legality of moving those lines.

Nevada Power represented that it would relocate any power lines to accommodate the Venetian, the lawsuit stated. "The Venetian acted in reasonable reliance on this representation in beginning a billion-dollar construction project."

At issue is whether Nevada Power has easements for the poles that carry power cable and Sprint phone lines.

The lawsuit, however, contends that even if it does, Nevada Power knew the Venetian project relied on the relocation of the power lines and the power company consequently surrendered any easement rights.

The lawsuit added that "the harm to Nevada Power, Sprint and the Rosewood Grille from relocating the existing power poles and lines is negligible or non-existent ... and the Venetian is willing to make reparations."