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Friday, May 4, 2012 | 2 a.m.
Michael McDonald, Feb 28, 2012.
He doesn’t have any money. He doesn’t have any experience. All Michael McDonald has is one of the sweeter deals in development history with a local government.
When he obtained his no-risk deal with Las Vegas, perhaps presaging a “We love corporate welfare” plank at this weekend’s state convention, Republican Party Chairman (and former Las Vegas Councilman) McDonald signed a contract.
I know what you are thinking: The city actually made him sign an agreement? Who knew they were that formal at Roundheels Central?
Nevertheless, despite having no experience in development but plenty of experience in juice, McDonald scored a deal that included $4 million in city funds that only Bob Coffin opposed. But he had to sign a paper that said when the lease with the city was executed for the land, he had to come up with about $140,000.
I was curious where McDonald could come up with such a hefty sum, having emerged less than two years ago from bankruptcy, his house only saved by the generosity of developer/gambler Billy Walters, who purchased McDonald’s expensive home in a short sale and let the indebted ex-councilman stick around. But where would McDonald get that sum, which the contract said had to be paid “upon execution of the City Ground Lease ...”?
He didn’t. McDonald provided no check when he came to City Hall this week to sign the documents. I suppose a wink and a nod are fine with the Goodman II council.
Alas, some pesky staffers thought maybe the city’s new partner should adhere to the accord he signed. “It’s due now, and if it is not paid, the City Attorney’s office will have to look into the situation,” a city spokesman told me Wednesday afternoon.
A few hours after I made that situation public, at 5:43 p.m. on Wednesday (I saw the receipt), McDonald came to the economic development office and dropped off a check for $141,692.81. Paid in full.
Just not by McDonald.
This is where the story gets interesting: McDonald, when he made his pitch before the compliant council, introduced the man he vanquished in a council race 17 years ago as his “consultant” — none other than Frank Hawkins, who has had success with affordable housing projects in Las Vegas and clearly was brought in by McDonald for credibility. That is, he’s built something; McDonald, not so much.
Hawkins told the council he was merely a “consultant” and might invest in future phases of the development.
Indeed, the agreement was signed twice by McDonald under two LLCs, one called Vegas1-Decatur (the location) LLC and the other called Fightin’ Irish (the prospective developer is a Notre Dame fanatic).
According to the disclosures provided to the city, there are no other investors in McDonald’s LLCs. Just him.
Both entities were formed in February, according to the secretary of state’s website. Yet neither was on the check McDonald delivered to the city late Wednesday afternoon.
That check was from National Construction Providers Inc., with an address in Reno. Yes, not at Vegas and Decatur or even anywhere near South Bend. Reno.
Why? Once again the handy SOS website provides the answer. The company president is Luther Mack, a well-known Northern Nevada businessman, and its director is Frank Hawkins.
You know, the “consultant” who fronted for McDonald at the hearing, who is now fronting him the money to ensure his sweet deal doesn’t go sour. I suppose we should all thank Reno for doing its best to help with Las Vegas’ economic development. Very generous of our northern brethren, eh?
There’s nothing obviously illegal about this transaction, and only a real stickler would say McDonald should have paid in full when he executed the lease or that he actually agreed to pay the money, not his “consultant.” But you have to believe if there are any sane, sober folks on Stewart Avenue these days, they have to be wondering why the council went out of its way to lavish $4 million on a recently bankrupt man who has never built a thing in his life and is being financed by a Reno-based operation that his “consultant” directs.
Let’s call this what it is: This is Hawkins’ project — he presented it to the council, and he is, until the federal and city grants come in, the money behind it, too.
I remain puzzled: If indeed McDonald requires two LLCs and if indeed there are no other investors in those entities, why does Hawkins need him? Why didn’t the city just sign an agreement with Hawkins instead?
I am still trying to figure out exactly what McDonald has that made him worth $4 million of Las Vegas taxpayer money.
Comment removed by moderator. ALL CAPS
Something smells funny here. Sniff, sniff.
We haven't had any City Council members get indicted for awhile.....
Is Luther Mack from Reno related to Michael Mack? My guess would be yes. McDonald was "consultant" to two local strip clubs where the owners went to prison.
Michael Mack was a consultant for the two strip club owners that belong in prison but were just recently granted a new liquor license for another strip club by the county without even having a public hearing to discuss the multiple violations these owners have at their existing clubs, or the dozens of arrests that resulted from raids on their other clubs. Not too mention these "applicants" for a new liquor license, the Iranian nationals that own Treasures Strip Club, already had to forfeit over 1.6 million to Texas authorities for illegal activity in 2005 and lied about it to LV get their license for Treasures re-instated after it too was revoked for prostitution. But that doesn't stop Clark County from issuing them another liquor and cabaret license to open another Strip club without as much as a public hearing. I guess it is time for the Feds to come in, clean up and and arrest half the politicians in Clark County and send them to prison again.
Anyone that thinks 2 individuals with multiple problems at ALL their existing clubs in NV and TX, multiple arrests of employees, including management and seizure of millions of dollars by government officials should be issued a privileged license is either completely incompetent of taking a payoff. Considering that I wrote to every County Commissioner and asked for a meeting to discuss the volumes of information I provided them on this case and not a single Commissioner, including chairwoman Brager, whose district the new club falls in, has responded or is even willing to meet with me to discuss the volumes of material that shows these applicants are NOT suitable for holding a privileged license. It has been well over a month and not a single Commissioner thinks it important enough to even meet with a constituent. However, these same commissioners had no problem allowing the Business License department to issue a Liquor license to "Cover Girls" without as much a s a public hearing. how much money did they give you Commissioner Brager? I think it is time to vote out all the County Commissioners or have the Feds look into exactly why rich Iranian nationals are given preferential treatment when it comes to privileged licenses. Anyone else has to wait for a public hearing. It only leaves me to wonder how much each commissioner was bribed to look the other way,issue a license and then delay a public hearing for obviously unsuitable applicants until no one is looking and a permanent license can be issued.
Why won't you meet with me Ms. brager? or any other commissioners? I've given you over 100 pages of accurate information, why no comment? why issue a liquor license when you have all that negative info about the applicants? How much did it cost to buy your vote Ms. Brager?
curiouser and curiouser? how about more and more curious?
Curiouser isn't even in the dictionary. Why not investigate what I wrote about. Talk about curious........Ross Goodman is their attorney......DA Steve Wolfson has been previously retained to represent violent thugs with violent criminal histories who committed violent crimes in their club......Yet he wasn't paid by the thugs, he was paid by the club and former Judge Glass (Mrs. DA) to make sure the violent thugs never even were arrested. Interested? I have documentation direct from the DA's office and LVMPD records department through an FOIA request and civil discovery that prove what I say is 100% the truth....
In my opinion, the only difference between this County Commission and the one with the 3 convicted felons is this Commission just hasn't been caught............yet
Correction: Wolfson was paid by the club. Judge Glass helped by not issuing an arrest warrant for her husband's clients. Sorry for any confusion. Even though the warrant request wasn't in Judge Glass's Court, she presided and denied the arrest warrant in place of Judge Bonaventure, who was scheduled to hear it.
It was a favor to her husband's clients.....who only retained Wolfson because of a reco from Goodman and payment from Treasures Strip Club. What a crooked city.
The connection to Luther Mack in Reno results from Hawkins' running back days at NEVADA.
And as Ralston points out, "There's nothing obviously illegal about this transaction . . .".
Which begs me to wonder if there is an ax and a grinder in the corner of Ralston's office.
Jon, I'm trying to figure out why this has vexed you so.Who cares?! McDonald was awarded a contract to build low income/senior housing in an area of town that desperately needs it. The uneducated argument that the abandoned/foreclosed homes should be used in lieu is tired. Most of the occupants of these new buildings will need on site assistance staff because they cannot live alone.
You've been incessantly complaining about a NON STORY for weeks. This was approved 6-1 by the City Council but you insist on whining about McDonald alone. He and Hawkins built in all kinds of safety measures to protect the CITY from everything that could go sideways. But, you don't inform your readers of that.
You continue to lie about his experience. He was the Chairman of the LVHA. Hello??!! I'm sure he picked up enough credibility from that to earn the title "Developer"
Where and who his investors/consultants are should only add to the credibility of his desire to see this built to improve the quality of life to people who have railroaded by the current administration. Like I said, non story being told by a critic that clearly has an axe to grind. (BTW, your ego is insane. I highly doubt you had anything to do with McDonald (doing what he agreed to do in the signed agreement) delivering the check!
Comment removed by moderator. Personal Attack
Does Mike still live with his Parent's
The part I find interesting is these units are costing about 2 1/2 times per sq. foot to build then most single family homes.
Since most of the money is coming from the government in many ways I would be interested in knowing why it is costing so much considering they don't have to buy the land?
It's Las Vegas and Nothing is as it seems. Even Jon is not what he seems.