Goodman won’t vote on website

Erin Neff

Wednesday, Nov. 1, 2000 | 11:16 a.m.

When the Las Vegas City Council reconsidered an Internet casino project this morning, the discussion was missing its biggest proponent.

Mayor Oscar Goodman determined Tuesday that his participation in the evaluation of the project may present the appearance of a conflict of interest, and thus, he has decided to recuse himself from participation.

When VegasOne.com presented the idea Monday for the second time, Goodman asked the company to disclose all of its principals.

Casino executive and Stratosphere founder Bob Stupak was named as one of the likely investors in the project.

On Tuesday Goodman's law office informed him that it had represented Stupak in an unrelated civil matter in May.

City Attorney Brad Jerbic determined the appearance of a conflict may exist, so Goodman decided to abstain.

Goodman has known for months that Stupak was on the periphery of the project. Last spring Stupak phoned the mayor several times to discuss the project and the city's potential connection.

But Goodman learned only Tuesday that his law partner, David Chesnoff, had represented Stupak in a case. Thus, Goodman said, he feels uncomfortable voting on the issue if Stupak invests in the project.

This morning Goodman met with Stupak's attorney, Jim Jimmerson, and with Jerbic to determine whether he could participate.

"I was told he would like to become an investor," Goodman said. "I told (Jimmerson) I feel very uncomfortable with him as an investor.

"If he represents that he is not going to be an investor, I would like to vote on this Nov. 15," Goodman added.

The mayor has been the most ardent supporter of the unsolicited offer by VegasOne.com to use the city's seal in a proposed Australian-based Internet casino. The city would receive 25 percent of the net profits and 5 percent of the gross revenue from the casino under terms of the proposed deal.

But some council members have expressed concerns about the security of the site, government's role in private sector business and the city's potential liability.

Without the mayor's support, the proposal will likely lose some steam.

Councilman Michael Mack abstained from Monday's meeting because his campaign manager, Dan Hart, had represented VegasOne.com during the company's first presentation to the council Oct. 18.

Hart has since decided not to work for VegasOne.com, but Mack is still being advised to abstain due to the original conflict.

"I want to be extra cautious," Mack said. "There's so much vagueness in ethics laws, and I don't want to be in that gray area."

Mack also said he wishes he could participate because he has studied the issue intently and is very familiar with Internet technology.

That leaves the proposal on shaky ground. Goodman and Mack were clearly the biggest proponents of the issue, with Councilman Larry Brown also expressing significant interest.

Councilwoman Lynette Boggs McDonald expressed the most concern, while Councilmen Gary Reese and Lawrence Weekly also asked questions highlighting potential concerns. Councilman Michael McDonald did not attend Monday's council meeting and did not participate in the chat that morning.

VegasOne.com has asked the council to give it an answer Nov. 15.