Panel OKs water pact for Wynn, D.I. Estates

Erin Neff

Monday, March 10, 2003 | 11:17 a.m.

Lawmakers found themselves in a Wynn-win situation Friday when they compromised on a proposed utility bill, helping the state's premiere casino developer and residents of the Desert Inn Estates at the same time.

The Assembly Commerce and Labor Committee amended a bill that would have allowed the Desert Inn Improvement Co. to escape all Public Utility Commission regulations.

Had Assembly Bill 139 been approved as written, the 10 remaining homes in the estates purchased by Steve Wynn to make way for Le Reve hotel-casino would have had no regulatory oversight over their water service, which is now provided by Wynn's company.

Assembly Majority Leader Barbara Buckley, D-Las Vegas, proposed an amendment to allow the residents to still have PUC regulation but to keep all of Wynn's financial transactions exempt from PUC scrutiny.

"Although we obviously preferred no regulation at all for a company that only serves 11 customers, my client can live with this," said Fred Schmidt, a lobbyist representing the Desert Inn Improvement Co. and Wynn Resorts.

When Wynn sought financing for the $1.4 billion Le Reve, state utility regulators had to examine all of the documents -- adding cost and time to the financing hurdle.

The water company once served 53 homes and the Desert Inn Golf Course but now serves only the 10 homeowners who refused to sell to Wynn.

Homeowners voiced strong objections to the measure because of ongoing legal battles with Wynn.

AB139 now goes to the full Assembly for a vote.