Investors, city to try for a deal

Mathis Winkler

Tuesday, March 5, 2002 | 8:46 a.m.

Investors in a mortgage company's fraudulent scheme might be able to recoup some of their losses if their representatives and North Las Vegas city officials agree on what to do with a half-built mobile home park.

City officials said they would be willing to consider an alternative proposal for the site, and investors' representatives said they would like to get a chance to come up with a new concept.

The project, one of the last of 44 loans handled by the defunct Harley L. Harmon mortgage company, sits on a 40-acre parcel on the corner of North Fifth Street and Washburn Road. Investors want it sold to get back some of the $7 million they have put into the project.

Harmon, a former speaker pro tem and Democratic majority leader of the Assembly, is scheduled to be tried in April on mail fraud charges in connection with this and other projects investors lost money on.

City staff members have argued that the development's permits expired in 1998 and cannot be revived. In January, planning commissioners upheld that decision.

The City Council is scheduled to hear the matter on appeal Wednesday.

Without the permit, investors worry they will only get $2 million for the land -- half as much as they could get if a buyer is allowed to finish the project under the old permit.

But George Garcia, who represents the 165 investors before the city, said both sides would try to come up with a better project.

"It appears that we've agreed to try and resolve this with the city," he said.

Councilwoman Shari Buck, who represents the ward that includes the project site, said she would consider an alternative project.

"If they come with a great product that fits the area, I'm willing to look at that," she said.