City up in arms over demolition

Denise Cardinal

Friday, May 29, 1998 | 9:55 a.m.

Although the federal government has spent more than $200,000 to demolish asbestos-filled buildings that were once the Sierra Nevada Arms public housing complex, the structures remain and taxpayers might end up paying another $200,000 to finally get them removed.

Located south of Lake Mead Boulevard near Holly Avenue and Simmons Street, the boarded-up buildings have insulation spilling onto the dirt lots. Fences surrounding them are unstable, and neighbors say children have been seen walking in and out of the buildings.

Omer McKnight, who lives next to the lots where the buildings sit atop stilts, said, "It's an eyesore. We've had two cars catch on fire right next to them. Good thing one of the buildings didn't catch and all of them went up."

When Leni Skaar does the dishes, she looks out over the boarded-up apartment buildings. It's a daily reminder of how residents -- even those in positions such as hers as a Las Vegas planning commissioner -- can be let down by government.

"I've received about 200 calls on these," she said, motioning to the square structures. "They're a nightmare."

Skaar isn't the only Las Vegas city official who's been dialed up by an angry neighbor of the empty buildings -- Mayor Jan Laverty Jones and Neighborhood Response Manager Orlando Sanchez said their offices received hundreds of calls, and City Councilman Gary Reese said he can't begin to figure out how many neighbors have called him.

"You can't blame them," Reese said. "They're an eyesore. They're dangerous. They have to go."

Built in the 1960s, Sierra Nevada Arms was one of the city's U.S. Housing Department projects. Over time, however, the apartments evolved into fire hazards and gang battlefields. In addition, asbestos was found in the ceilings, walls and floors, and lead was found in the paint.

Two years ago, HUD sold part of the property to Shepherd Hills Development, a nonprofit developer, for $1. The company promised to build low-income housing on the lots after demolishing the decrepit buildings with $448,000 from HUD.

Southwest Color Rock was hired by Shepherd Hills to demolish the structures. But rather than wreck the buildings, Southwest arranged a salvage agreement and sold the buildings to Mike Kinzler.

Southwest Color Rock received two payments from HUD through Shepherd Hills totalling $228,000 for its purported asbestos abatement on some of the structures.

"But those payments were done ... not in protest, but we had some questions," Pat Goray, director of operations at the HUD San Francisco office, said. "The basic problem is they had no third-party proof that asbestos abatement had been done according to state, federal and local laws."

Since those questions were never answered, Goray said, HUD hasn't paid any more of the allotted funds.

Officials at Shepherd Hills and Southwest could not be reached for comment.

Kinzler, now the owner of the buildings, has been attempting to move the structures to other empty lots around the city, rehabilitate them and rent them out.

City, county and state officials contend that the buildings remain because Kinzler didn't procure the necessary permits for moving them. Then, when permits were obtained, deadlines passed without action.

"He'd say he needed one more week, or one more month," Skaar said, "but then nothing would happen, and he'd have another reason."

In reality, some of the buildings have moved -- but just across the street. After four of the shells were put in an empty lot in the city of North Las Vegas, an inspector red-tagged them, giving them 72 hours to be removed under threat of demolition.

That deadline passed, along with many others set by the city of Las Vegas. But tonight, the last of the last chances for Kinzler will arrive. If the buildings aren't moved by midnight, Reese said, then the city will move forward with its own demolition plans -- even if it ends up costing taxpayers.

"We don't have the money in our building department for this," Reese said. The city's entire budget for demolition in one year is barely $200,000. Inspectors estimate that the demolition will cost at least $250,000.

"But we have to get rid of these," Reese said.

Jones agreed with Reese and has ordered the city attorney's office to pursue legal action against every individual, company and government entity that allowed the buildings to remain. HUD officials have said they'll look into how to give the city the remaining $200,000 originally set aside for Shepherd Hills to pay for demolition.

"We should get some money for it," Jones said.

Kinzler said he arranged for the buildings to be moved and couldn't understand why they're still there.

"We have the permits in place," he said. "I'm just trying to figure out the problems with it."