Reno Gazette-Journal from Reno, Nevada • Page 13

Heno Evening Gazette Tuesday, August 25, 198113 Local SPORTS Boieinia Vista developer ye citty The City Council has rejected sponsoring revenue bonds for a shopping center, and has scheduled 10 com-1 munity meetings on the city's master plan. Page 18. By DICK COOPER Gazette staff writer Developer Fred Gagnon filed suit Monday against the city of Reno, shortly after the City Council sought to negotiate a settlement between Gagnon and residents opposed to his Buena Vista common-kitchen development. The developer had asked the council to overturn a decision denying him a business license for the completed project. The council took no action on Gagnon's appeal.

stead, council members asked the city attorney to mediate between Gagnon and neighbors protesting the Buena Vista development. But a half-hour later, the developer filed suit in Washoe District Court, seeking a writ ordering the city to issue him a business license. Gagnon also is asking to be compensated for "substantial monetary damages." si He alleges that the city's withholding of a business -license has halted a pending sale of the project, with i interest on a construction loan accruing at the rate of i 7no a week. cil has determined the 8-kitchen, 32-bedroom project is a 32-unit development. Regional planners had figured the density of the project on the number of kitchens, designating it an 8-unit project that didn't require review by the council.

The council's July ruling on the Buena Vista project's density, the result of an appeal by residents, placed the development in violation of zoning, which allows only 11 units on the lot. In his suit against the city, Gagnon maintains that the City Council has breached its duty to enforce laws "in a uniform and timely manner." Appearing before the council Monday, Gagnon said the city has violated his civil rights by denying him a business license for a completed project. If he is to be denied a business license for his shared-kitchen development, Gagnon said, developers of similar projects also should be. "I'm going by what the law says is a common-kitchen development," he said, and referred to other shared-kitchen projects where density was based on the number of kitchens. John Briner, a business associate of Gagnon, said the city is setting "a dangerous precedent" in attempting to go back on a completed project.

Gagnon's attorney, Dennis Kennedy, told the council: "To change the rules at the end of the game seems to me inequitable." City officials earlier this month denied Gagnon a business license after a finding by the City Council in late July that the common-kitclien development is in violation of zoning. Reno Mayor Barbara Bennett said late Monday she is disappointed Gagnon apparently is refusing to negotiate. She said the developer is not guaranteed a favorable ruling in court. The city's position in the Buena Vista "mess," she said, has been to protect the interests of taxpayers, including neighbors of the 3-story development. The council's urging of a settlement in the dispute came after about 2Vfe hours of testimony both from angry residents and from subcontractors involved in the development, who said the city's refusal to grant Gagnon a business license would prevent them from receiving final payments for work on the project.

Gagnon claims he received all the necessary approvals, including a building permit and a certificate of occupancy, to operate the development as a shared-kitchen development. But one resident said Monday the developer "wiggled this building in through loophole after loophole," and shouldn't be permitted to rent out individually the 32 bedrooms at the Buena Vista project. Although the Department of Regional Planning and the Reno Building and Safety Department originally approved plans for the development, the Reno coun But Jim Smith, who lives next to the Buena Vista project, argued that the council's previous interpretation of the project as 32 units is correct. The bedroom units would be rented and occupied separately, he said. Because of its proximity to the University of Nevada-Reno, residents also said they would expect students to double up in occupying the rooms, which could mean 64 or more persons living in the complex.

The neighbors restated concerns about parking, setbacks and the detrimental effects of a high-density development in their single-family neighborhood. And while acknowledging Gagnon will lose money if he can't sell the development as a 32-unit project, the residents said their properties will be devalued if it is. Smith said residents began challenging the Buena Vista project in March, and asked for a hearing before the development's construction was very far along. It is not the fault of the residents the Reno Board of Adjustment hearing did not occur until June, after the contractor substantially completed work on the project, he said. Residents suggested that the Buena Vista project be altered to a conventional, lower-density apartment complex.

Poli reluctant to take bribe Cannon aide assails report of mob link By PATRICK ARNOLD Associated Press writer By MARTIN GRIFFITH Gazette staff writer LAS VEGAS Lyon County Commissioner John Poli was reluctant to take money from two San Francisco women who wanted to buy out the Sagebrush Ranch brothel, but said he might change his mind later, an FBI agent testified today in Poli's extortion trial. Agent Thomas Fay, one of the federal agents who arrested Poli and fellow commissioner John McNown outside a Fernley bar last January, said Poli had not seen McKnown accept any money from one of the applicants during a brief meeting at the tavern. During an interview following Poli's arrest, Fay testified, "He told us that he did not want to take money that night said the reason for reasons of conscience." Poli, 53, an onion farmer, has claimed he was trying to determine if fugitive brothel owner Joe Con-forte was involved in the bid to purchase the bordello. McNown, 43, was convicted last week in Reno federal court of conspiracy and extortion charges. Fay testified that Poli told him he and McNown had met with the two women the previous month but that Poli said "he went along merely to do a friend a favor Mr.

McNown had indicated to him several times that he, Mr. McNown, needed money to expand his business." The two commissioners were tried together in Reno last April, but the trial ended in a hung jury. Assistant U.S. Attorney Allan Freedman said in his opneing statement Monday that evidence would prove Poli and McNown met last Dec. 15 with Janice Chatterton and Robyn Harrington, who were involved with massage parlors in San Francisco and told them it would cost $50,000 to get their bid for a brothel license approved.

McNown resigns Lyon County Commissioner John McNown, convicted in federal court last week of conspiracy to commit extortion and attempted extortion, has resigned. Phyllis Clark, secretary to the county commission, said McNown called late Monday to dictate the letter and later went to the courthouse to sign it. The letter was delivered to the county clerk today. The letter, addressed to the commission, said, "I hereby tender my resignation as a member of the Lyon County Commission, effective Sept. 1.

"Attendance at my daughter's graduation from nursing school in Southern California precludes my presenting this in person." McNown was convicted in U.S. District Court in A key aide to Sen. Howard Cannon, Monday assailed a Chicago newspaper report linking the senator to organized crime, calling it "garbage" and "a political hatchet job." Chet Sobsey, Cannon's administrative assistant, leveled the criticism in response to allegations in a Chicago Sun-Times story Sunday that Cannon received campaign contributions in 1976 from a number of underworld figures. Meanwhile, reports filed with the Nevada secretary of state's office show Cannon's likely opponent, Rep. James Santini, also has received contributions from some of the same persons named in the Sun-Times story about Cannon.

Sen. Paul Laxalt, has received contributions from some of those persons, too, reports show. The Sun-Times reported more than one-third of the contributors who gave the maximum $2,000 donation to Cannon's 1976 re-election effort have been linked to "organized crime or systematic unlawful activity." "It's the cheapest kind of McCarthyism propaganda I've ever heard of," Sobsey said. "It was just an irresponsible piece of journalism and a hatchet job. I can't believe anyone would print garbage like that.

"I couldn't express in clean language what I think about the insinuation (that Cannon is linked with the mob). It's so ludicrous and patently false that it's beneath comment. Who on God's earth would believe that kind of crap?" Among those giving contributions, the newspaper reported, were Allen M. Dorfman, convicted in the Teamsters pension fund scandal, and Anthony "The Ant" Spilotro, a reputed Chicago mob figure, who has been indicted by a Las Vegas grand jury on nine counts of racketeering. Other contributors were Allen R.

Glick, an alleged mob front man; Morris A. Shenker, majority stockholder of the Dunes Hotel in Las Vegas and a Dorfman associate; and Jay Sarno, a Spilotro associate and friend of Dorfman's, according to the newspaper. Sobsey confirmed Glick, Shenker and Sarno contributed to the campaign, but denied Dorfman and Spilotro did. He hinted Cannon might consider a libel suit over the newspapers' assertion that they gave. "I can guarantee you that Dorfman and Spilotro never gave him any contributions," he said.

"We may have had a contribution from Glick, but at the time there was nothing wrong with him. "The others (Shenker and Sarno) gave us money, but they've contributed to other office holders and their names are familiar. It's already been reported; it's old news." A check of campaign contribution reports in the Secretary of State's office showed no contributions from Dorfman or Spilotro during that period. Reports filed earlier this month show Cannon received money for his 1982 re-election campaign from both Shenker and Moe Dalitz, a Las Vegas businessman named in a 1978 California attorney general's list of people with alleged organized crime links. The same reports also show Santini received contributions from Sarno; Irwin Molasky, longtime partner of Dalitz; and William O'Donnell, who was forced to step down as chief of Bally Manufacturing Corp.

because of past dealings with two reputed organized crime figures and other problems. In addition, reports show Laxalt received contributions from many of the same contributors during his 1980 re-election campaign. And in their 1978 campaigns for governor, Gov. Robert List and former Lt. Gov.

Bob Rose accepted contributions from two gaming corporations (Argent, which owned the Stardust Casino and the Aladdin Hotel) that later were the targets of federal investigations into organized crime. Both candidates returned the contributions. "Just about everyone of these people has contributed to other office holders and their names are familiar," Sobsey said. "They're largely in trouble because of gambling violations in other states. Their links to organized crime are very, very vague." Gazette photo by Doug Dill New box seats Reno of conspiring with fellow Commissioner John Poli to solicit a $35,000 bribe in January from two San Francisco women seeking approval from the commission for a brothel license.

The framework for new individual box seats at is taking shape. The project will provide en-the University of Nevada-Reno football stadium closed seating for football fans. Sparks council rejects raising school zone speed The Sparks City Council has voted to name a sports complex after Assemblyman Don Mello. Page 18. However, Hastings said he would still like to see Sparks' traffic and engineering departments take a "good, hard look" at the city's school zones.

He said there are many major thoroughfares within the city where traffic is needlessly tied up by the slower school zones. "Like the (traffic) tie-ups on Prater Way," Hastings said. The council also unanimously approved a request from Karl's Silver Club owner Karl Berge to increase his proposed hotel tower from four stories and 139 rooms to six stories and 206 rooms. "In light of what you Player) said, I support and applaud your suggestion," Dalton said before the vote. Lucille Adin, president of the PTA advisory council which initiated the petition drive, thanked the mayor and the council for their reconsideration.

Added one PTA president, "I can't tell you the relief many parents are going to feel when they find out about this (the denied speed limit After the public comments, Councilman Ed Hastings said he was a proponent of the increased speed limit, but i was obviously "mistaken." lights in favor of signs with the effective hours for the lower speed limit 7:30 a.m. to 4 p.m. Several petitions protesting the increased speed limit were circulated and submitted by the Sierra PTA Advisory Council. And Washoe County Schools superintendent Lenoard Dai-ton and other district officials also registered strong opposition to the proposal before the public hearing. But the mood at Monday's meeting changed as Mayor Ron Player suggested councilmen not approve the increased speed limit and instead implement other safety measures.

By HENRIETTA CHARLES Gazette staff writer The Sparks City Council Monday night unanimously rejected an ordinance raising the speed limit in the city's school zones from 15 mph to 20 mph. The speed limit in all school zones will remain at 15 mph. But the council voted to eliminate the flashing yellow Legislators unhappy over Watt's absence at conference think we should have had a high-level official speak to us," Ashworth said. "I'm definitely disappointed with his decision. "We had difficulty getting high-level (Reagan administration) officials here and we finally had to settle for an assistant to the assistant's assistant.

I think we deserve better." A spokesman for Watt said he would be unable to attend the conference because of "scheduling difficulties." He said Watt's visit to Alaska last week and forthcoming visit to the Western Governor's Association show he's "not ignoring the West." Sen. Howard Cannon, will give the conference's keynote address today instead. Some 500 legislators from 11 western states are attending the annual meeting through Wednesday at the Sahara Reno. Discussions have begun to create a coalition of Southwestern states to manage disposal of low-level radioactive waste. Page 18.

By MARTIN GRIFFITH Gazette staff writer Interior Secretary James Watt won't be attending a four-day conference of western state legislators in Reno this week, and lawmakers aren't very happy about it. State Sen. Keith Ashworth, D-Clark, chairman of the Western Conference of the Council of State Governments, took Watt to task Monday for spurning a request to speak before the group. "This is a very important group of people and I In a news release, Ashworth also expressed dissatisfaction over the handling of western legislators during a recent meeting with Reagan. He said questions were prearranged and none reflected "western concerns.

The meeting is being held in Reno this week to develop policy positions on western issues. Eight committees dealing with various issues will submit recommendations to the full conference for adoption. The committees are hearing experts testify on energy conservation, energy development, public lands, corrections, hazardous wastes, international trade, transportation and water policy. Here are highlights from Monday's session: Legislators were told states should move quickly to plan for administering welfare programs that will be funded by block grants from the Reagan administration. "If you don't, the new federal rule writers will do it for you," said Lee Goeotis, staff director of the Western Governors Policy Office, and Jack McRay, director of the Washington office.

Legislators were told a federal court judge's dismissal of Nevada's "Sagebrush Rebellion" suit was a blow, but the move to give states control of federal land within their borders is still alive. Nevada Chief Deputy Attorney General Larry Struve said U.S. District Judge Edward Reed of Reno ruled Congress has the power over public land without limitation, even if it harms a state's sovereignty and operation. IzlKi A.