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Developer Harvey Whittemore is threatening to sue for millions because of the Sparks City Council's rejection of plans to build a hotel-casino in Spanish Springs Valley.
In a 3-2 vote early Thursday, council members upheld the planning commission's denial of the $100 million Lazy 8 resort on the Pyramid Highway.
Whittemore argued a 1994 entitlement to build a casino at his Wingfield Springs development east of the highway can be moved to the 20-acre site, where he plans to sell land to Peppermill Casinos for the development.
Before the vote, the developers warned they would file a lawsuit to reverse any adverse decision and seek millions in damages.
"This could be a $100 million hit for the city," lawyer Stephen Mollath said.
Whittemore said his company could seek $300 million to $400 million in damages. He declined to comment after the meeting.
"When I heard $300 million to $400 million, did that scare me? You bet it did," said Councilman Mike Carrigan, who sided with the project.
Whittemore, also an influential legislative lobbyist, said he has never been involved in such a heated issue in all his years dealing with elected officials.
"I've never seen one that has resulted in the type of animosity, personal name calling and threats that have been barraged at myself and my family," Whittemore said.
Both sides mailed fliers urging residents to make calls of support to council members and turn out at Wednesday night's special meeting.
Many in the overflow crowd of more than 300 hailed the council's decision, noting the project would be within one-quarter mile of homes, a library and a regional park.
"I'm extremely happy," resident Vija Cox said after the vote. "I don't usually drink wine, but I'm going to go home and crack a bottle."
But an attorney for John Ascuaga's Nugget hotel-casino, which backed a citizens' group oppposed to the project, acknowleged the battle was not over.
"It's too early to celebrate because we heard the threats of litigation," lawyer Stephen Peek told the Reno Gazette-Journal.
Proponents hailed the resort's benefits to the community.
"In this one project we are offered six restaurants, a place to put up our obnoxious (visiting) relatives ... all without walking through a smoky casino," resident Stacey Derck said.
The project also would include 200 hotel rooms, a movie theater, arcade and retailers.
During the emotional hearing, Whittemore's daughter, Andrea, discussed her father's pledge to dedicate profits from Lazy 8 to the University of Nevada, Reno.
Half the profits would go toward the study of diseases such as chronic fatigue syndrome - which she suffers - and the rest to scholarships and athletics.
"You might just vote for a cure," she told the council.
Casino opponent Deborah Banks then accused Harvey Whittemore of using "family members with horrific diseases as pawns."
But Andrea Whittemore shot back across the room: "He didn't use me." Her father then yelled to Andrea that it was OK.
Mayor Geno Martini called for order as several audience members shouted.
Throughout the meeting, comments from citizens and council members prompted boos and cheering from the crowd. |
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