Developer: Strip golf plan will go ahead

Steve Kanigher and Adrienne Packer

Monday, Oct. 19, 1998 | 11:15 a.m.

Billy Walters plans to proceed with a Las Vegas Strip golf course development despite being indicted on charges related to his sports betting activities.

Walters insisted that a Clark County Grand Jury indictment handed down Friday would have "zero" impact on plans by his Las Vegas company, The Walters Group, to proceed with the 27-hole public golf course complex.

His company was chosen by the Clark County Commission last month over two competitors to develop 155 acres on the southwest corner of the Strip and Russell Road across from McCarran International Airport. His selection capped a controversial, year-long series of delays by the commission. Walters said he doesn't expect the commission to change its mind because of his legal problems.

"They're very competent, honorable people," Walters said of the commission. "I have no concern whatsoever that the powers that be at the county commission will have any problems with me.

"We live in America. Just because someone alleges something doesn't mean anything is there. I welcome any questions about me and my conduct. I don't expect any problem with anyone."

Walters is not out of the woods, however. Though his company was selected as the developer, he and the county have not yet signed a contract to make the deal binding.

That's significant because Ted Olivas, purchasing manager for the county's Department of General Services, said his office will be monitoring Walters' legal proceedings during their contract negotiations. Olivas said it would be at least two months before a contract could be worked out.

If Walters is convicted, Olivas said "we would have to get with our legal counsel to determine if there is an impact."

The commission's legal staff is the Clark County District Attorney's office headed by Stewart Bell. However, Bell said the decision to enter into a contract with Walters is a "policy matter" for the commission that his office likely wouldn't get involved in.

"Whatever political overtones there would be, you would have to ask the people who make the policy," Bell said.

Only three of the seven commissioners, Chairwoman Yvonne Atkinson Gates, Myrna Williams and Erin Kenny, selected the Walters proposal. The other four commissioners abstained for various reasons, including conflicts of interest with the competing developers.

Gates and Williams told the SUN Friday that they'll probably review the matter pending further information. Kenny declined comment because she, too, wanted to learn more about Walters' situation.

Bell noted that an indictment alone isn't enough to nullify an "existing commitment." He said the county would have to honor any contract it gives The Walters Group as long as the company complies with its end of the deal, even if something happens to Walters.

"If a contract is executed, then the county wouldn't have a right to terminate it as long as there wasn't a breach by whomever the county negotiated with," Bell said. "As long as the company lives up to its end of the bargain the county has to live up to its end of the bargain."

Walters also is negotiating with the county on a contract to build the Desert Breeze Public Golf Course on U.S. Bureau of Land Management property at Flamingo Road and Durango Drive. That contract also is about two months away from being signed, county spokesman Tom Warden said.

Assistant County Manager Bonnie Rinaldi said ongoing negotiations with Walters will continue.

"It's my impression and understanding that he's innocent until proven guilty," she said. "If he is convicted, we will check with our attorneys. We'll have to find out if he will be capable of fulfilling the contract."

Walters, confident that the indictment is groundless, said his company could break ground on the Strip golf course development in 90 to 120 days and complete the project within 15 months. The public would have access to both the 18-hole course and a companion Par 3, nine-hole layout.

The development was expected to cost $33 million, excluding a water re-use facility that could add $10 million in costs. The intent was to settle on a 50-year agreement, with the county earning an estimated $116 million in revenues from years 11 to 50 of the contract.

Olivas, however, said he doesn't believe it will be possible to break ground in 90 to 120 days because of lingering issues, including control of the land itself.

When the commission selected The Walters Group, the county controlled about half the Strip land in question, with the remaining acreage in the hands of the BLM. But Congress earlier this month passed a federal lands bill that will transfer the BLM's portion of the land to McCarran, which is run by the county.

Olivas plans to meet with airport officials this week to discuss the golf course proposal. One issue on the agenda is whether the county will still have to consult with the BLM in order to make a deal final with Walters.

If the county somehow decides against contracting with Walters, the commission could reconsider the two losing bidders. But Tommy Baker, head of a partnership that wanted to build a Formula One racetrack, has moved to California.

Lee Haney, vice president of the Rogich Communications Group, a Las Vegas partner in the racetrack proposal, said there is no chance that partnership would revive its proposal. The group is headed by advertising executive Sig Rogich.

"Formula One has initiated negotiations with other (American) cities," Haney said. "They wanted to hold their first race in the United States in 2000, and they wanted to announce the site in November."

That leaves the other partnership, Gary Player Design Group and Club Corp. of America, which wanted to build a tennis complex to go with its 18-hole golf course. This star-studded partnership included famed golfer Gary Player of South Africa and local tennis pro Andre Agassi.

Las Vegas attorney Mahlon Brown, who serves as legal adviser to Dallas-based Club Corp., said he is awaiting response from the company to determine whether they would like to revive their proposal if requested by the county.

"I would hope they would like to come back, but I don't wish Billy Walters any ill will," Brown said.