State panel rejects proposed casino

Friday, March 17, 2000 | 12:46 p.m.

A state review panel dealt a solid blow to backers of a casino planned for a residential area of Spring Valley, rejecting the proposal 5-0.

Observers said the decision could make it virtually impossible to establish "neighborhood" casinos outside of established gaming districts in Clark County.

Attorneys for Triple Five Nevada Development Corp. and Boyd Gaming Group promised an appeal to the decision in federal or state courts.

The Friday morning decision closes the latest chapter on the issue in the first-ever test of a state law, Senate Bill 208, which was designed to limit the spread of casinos away from established gaming districts in the Las Vegas Valley.

The Clark County Commission in January approved the casino, to be located in the heart of a 100-acre shopping center at Grand Canyon Drive and Flamingo Road. The approval sparked an organized citizens movement to stop the casino, threats of tougher state laws to stop neighborhood casinos and a proposal from County Commissioners Bruce Woodbury and Yvonne Atkinson-Gates that would make it much more difficult to site new casinos off established gaming districts.

"I feel good. I feel that the process has worked," said Charles Richardson, a Spring Valley resident who would live just a few blocks from the 300-room, eight-story casino. "It shows that democracy still works in Las Vegas, regardless of who is the big guy.

"The law's intent was really upheld," he said. "David can still slay Goliath. It shows what citizens banding together can accomplish."

All five members said the casino advocates met some of the conditions of SB208, including provisions that the casino be at least 500 feet away from developed residential neighborhoods.

But all five also agreed that the casino backers failed to meet two critical tests within the 1997 law -- that a new casino not unduly affect the quality of life or the "health, safety and general welfare" of the surrounding community.

Panel members, including Chairman Brian Sandoval, noted that the law -- and courts up to the U.S. Supreme Court -- have failed to define "quality of life."

But on the health, safety and welfare of the community, Sandoval said the reports by consultants hired by Triple Five during the original application process did not meet the high burden of "clear and convincing" evidence that the casino would not affect the surrounding community.

Garry Hayes, attorney for Citizens of Spring Valley, said an appeal based on the vagueness of "quality of life" might have had a shot. But the health, safety and general welfare section of the decision "seals it," he said.

Triple Five and Boyd Gaming will have to prove that the panel acted in an "arbitrary and capricious manner" to throw the decision out, Hayes said, a tough job in state District Court. The casino backers could also appeal in federal court on property-rights grounds, he said.

Mark Fiorentino, attorney for Triple Five throughout the process, said his side is almost certain to appeal. A decision on which court to bring the issue to will have to wait for a thorough review of the written decision to come.

Boyd Gaming Group President Don Snyder, who attended the hearing, said the panel's interpretation of the "quality of life" provision in SB208 could halt virtually all development of new casinos outside gaming districts included in the law.

The law "is not meant to be a prohibition to gaming," Snyder said. The panel's interpretation could mean that one person could hold veto power over any proposed casino, he said.

The casino envisioned for Spring Valley would have supported numerous amenities for the community such as movie theaters, Snyder said.

The panel decision will set a strong precedent, said Dr. Dayananda Prabhu Rachakonda.

"From now on, no one will actually think of establishing a new casino without resolving all the issues," Prabhu said. He added that his vote against the casino was difficult and required a thorough review of 2,500 pages of transcripts, records and other material from the panel and the Clark County Commission.

Hayes agreed that the decision sets precedent discouraging neighborhood casinos.

"I think we've turned the corner on neighborhood casinos in Las Vegas," he said.

Launce Rake covers growth issues for the Sun. He can be reached at (702) 259-4127 or by e-mail at lrake@lasvegassun.com.