LVCVA again tries to have suit dismissed

Friday, Sept. 24, 1999 | 11:16 a.m.

A District Court judge will consider a motion today that could derail a trial that is delaying expansion of the Las Vegas Convention Center.

Judge James Mahan will hear arguments from the Las Vegas Convention and Visitors Authority for summary judgment on a challenge to revenue bonds approved to finance the $150 million South Hall expansion.

The LVCVA's financing of the project has been challenged by the Venetian hotel-casino, which filed suit in July. Venetian officials say the bonds being contemplated by the LVCVA are a form of general obligation bond that requires a public vote for approval.

Mahan already rejected an LVCVA motion to dismiss the case in August. The case is expected to go to trial Oct. 5.

In its motion, the LVCVA says its bonding authority was expanded by the 1999 Nevada Legislature to include the power to issue revenue bonds that are not solely from the authority's net revenues.

In his response to the LVCVA motion, Venetian attorney Stephen Peek said the authority is rearguing its motion to dismiss the case.

He asked the court to sanction the LVCVA for raising the same points it made in its motion to dismiss.

Peek also said the Legislature's statute "still provides that revenue bonds must be payable from the net revenues to be derived from the operation of the facilities to be funded with the proceeds of the bonds.

"Such bonds may now be secured by a pledge of room and gaming tax revenue," the response says. "Nevertheless, the Legislature continued to make a distinction between the bonds being 'payable from' revenues of the facilities and 'secured by' tax money."

The LVCVA's motion argues that "the Legislature declared that any bond issued by the Convention Authority may be satisfied from room taxes, which means ... that judgment must be entered for the Convention Authority, confirming its authority to issue the bonds here in question."

In another matter, Peek said he has received depositions from four existing or former members of the LVCVA to support his contention that the agency violated the open-meeting law in its deliberations on the South Hall expansion.

Mahan gave Peek permission to question six more LVCVA board members after reviewing the transcript of a deposition from former Las Vegas Mayor Jan Laverty Jones, who was chairwoman of the LVCVA board at the time of the decision.

The Jones deposition indicates the Venetian is attempting to show that the LVCVA violated the open-meeting law when the staff briefed board members individually.

Peek completed depositions of former board members Don Givens and Don Snyder, two casino executives, and current members Mike Montandon, the mayor of North Las Vegas, and Clark County Commissioner Mary Kincaid.

Peek said he hoped to speak to another active board member, motel executive Juanita Wilson, this morning. Next week, he will attempt to reach another former member, Ken Carter, who used to serve as the mayor of Mesquite.

The results of the depositions aren't expected to be introduced in court today.