Arena bidder claims foul on city

Diana Sahagun

Friday, Nov. 16, 2001 | 11:16 a.m.

Bill Lightbody, a well-known San Diego developer affiliated with the Harlem Globetrotters, thought he was entering into a typical redevelopment partnership with the city of Las Vegas when he began discussions with Mayor Oscar Goodman regarding a downtown arena.

Lightbody said he was met with boundless enthusiasm from city officials when broaching the subject in May. The idea culminated in a June meeting in Phoenix with representatives of the Globetrotters' and several city officials.

After that meeting Lightbody was told by city planners and representatives from the Business Development office that they had the perfect location in mind: A 2.5-acre parcel owned by Boyd Gaming, Inc. at the corner of Stewart Avenue and Main Street.

The city began to explore the idea, spending $50,000 on a study to determine the feasibility of a downtown arena by comparing Lightbody's proposal with one by Larry Leasure, an Idaho developer. Lightbody said he received dozens of correspondence and phone calls from the city's Business Development office -- including from Director Lesa Coder -- requesting details relating to financing and a business plan.

The city's involvement took a turn south in October, and an announcement by Goodman on Thursday that negotiations with Leasure to develop the arena would begin has representatives of Lightbody accusing Goodman of negotiating in bad faith and stacking the deck against the company.

Lightbody says he was told by Goodman and city planners that -- as is the case with some typical redevelopment projects -- the city was negotiating to purchase the land from Boyd Gaming and planned to turn it over to him for development. The agreement, as described, would be similar to an agreement for a 61-acre parcel previously owned by the Union Pacific Railroad and sold to the city of Las Vegas, which is negotiating with Southwest Sports Group.

Goodman, though, said Thursday that the arena was a "private venture" and that the city would assume no risk because it would not be responsible for financing.

Goodman this morning declined comment on Lightbody's accusations, on the advice of the city attorney's office. Goodman did say that he was excited about the prospect of bringing the Harlem Globetrotters to Las Vegas, and was pushing for the idea, but that Lightbody refused to submit a proposal.

"We gave him every chance to submit a proposal," Goodman said. "I really wanted to see his idea, but he refused to submit a proposal."

City staffers, who spoke on the condition that they not be named, said they were bombarded daily with dozens of phone calls by Lightbody and his attorney, who expressed "paranoia" about the process and the possibility of his information being shared with his competitor.

The sources said the city was never attempting to purchase the land from Boyd Gaming, and was involved only because the City Council would ultimately have to vote on whether to forgive the gaming company from a plan to build a parking garage on the property pegged for the arena.

Lightbody says he was led to believe that it was a city process, causing him to spend thousands on hiring an architect and coordinating a management team.

Goodman sent Mannie Jackson, owner of the Globetrotters and Lightbody's partner, a letter in August that said he would embrace the team. Lightbody said the letter gives the impression that Goodman was working on behalf of the city to secure the site for development through a public process.

"Per our recent discussions, we are in the process of negotiating an agreement to secure a location for your events arena," Goodman wrote. "I believe that our negotiations will be successful and we can move forward with our plans to develop the site. The city of Las Vegas staff is anxious to work with you to 'fast track' your plans for construction."

Everything changed in October, Lightbody says. He was told by Mark Paris, president of the Fremont Street Experience, that a nonprofit corporation had been formed -- Las Vegas Events Center, Inc. -- involving Paris, Goodman, and Don Synder, who heads Boyd Gaming.

On Oct. 25 the corporation sent a letter to Lightbody, saying the corporation was issuing a request for proposals that was due -- in person -- in eight days. Lightbody did not receive the letter until Oct. 27, leaving him six days to assemble a proposal that was required to include conceptual designs, a construction and financing budget, project description, operating organization and all sources of revenue. By comparison, developers were given three months to respond to the city's request for proposals for the 61-acre development.

Lightbody scrambled to collect the information, but was stopped cold by several requirements in the request. The request stated that there was no guarantee that the proposals would remain confidential, which means the corporation could show the material to his competitor. Another clause stated that the proposals would become the property of the corporation, and that the developer waives all rights of claims to any design, plan or intellectual property.

Lightbody sent his attorney, at that time Danise Michaelides, to the meeting to address his concerns. She was turned away at the door, he said. Lightbody's new attorney, William Aul, was allowed to meet with the corporation Nov. 7 to address his concerns.