City officials seek approval to invest

Judy Odierna

Tuesday, Nov. 19, 2002 | 11:05 a.m.

The downtown "Speakeasy" coveted for years by Las Vegas Mayor Oscar Goodman may be one step closer to opening its doors, but the gin joint won't reap the benefits given to other downtown businesses if it does.

The city of Las Vegas is asking for a bill in the 2003 Legislature that would allow public officials or city employees to invest in a redevelopment area that they make decisions about.

The request includes caveats that officials and employees could not receive financial incentives normally allowed in redevelopment areas and they must publicly disclose their investment on a council agenda.

"What we are trying to do is put everything on the public records to be on the up and up," Deputy City Manager Betsy Fretwell said. "But it is no different than the (employee or politician) putting their office in Summerlin. It's the same scrutiny -- in fact, it's more scrutiny than what a regular business person has to go through."

The city has previously floated the idea, and Goodman has talked about opening "Oscar's Speakeasy" in the downtown redevelopment area. The law now precludes city officials with oversight of a redevelopment area from having a financial interest in the area because of potential conflicts of interest.

Goodman said he believes the new bill lacks controversy now that restrictions are in place.

"As long as there is complete disclosure and we are on more than a level playing field, then I think it is perfectly appropriate and I support it wholeheartedly," Goodman said. "Everyone knows what's happening here, it's no big deal."

The city pulled a similar proposal from the 2001 Legislature, saying it would be too controversial. The caveats should make it more palatable to legislators, Fretwell said.

"This provides adequate safeguards," she said.

Councilwoman Lynette Boggs McDonald questioned the bill in 2000, saying the proposal was too much like insider trading. But Boggs McDonald had a change of heart when she realized the current laws also prohibit family members from investing in redevelopment areas.

"If my husband wanted to open a law office downtown, he would be precluded from doing so the way the statute reads now," Boggs McDonald said. "I believe the original intent was not taking insider information and enriching yourself. I don't think it ever envisioned also precluding using your own resources from making an investment."

Boggs McDonald said good judgment will be the key to avoiding questionable acquisitions.

"A lot of it is common sense that includes disclosure and not taking advantage of any projects" Boggs McDonald said.