NV city, casino company fight about open meetings

HENDERSON (AP) - A Nevada casino company and the city of Henderson are battling in court over allegations that City Council members met secretly on an issue about a potential competitor.

An April 15 hearing is set for a Clark County District Court judge to consider whether to dismiss a lawsuit filed in November against the city by Station Casinos Inc., or to strike the open meeting law allegations from the case.

The city is asking the court to strike what it calls the "scandalous" and "baseless" open meeting claims from the Station lawsuit because they could leave council members open to personal criminal liability, and harm the reputations of two council members currently running for re-election.

Bud Cranor, a spokesman for the city, called Station's allegations "salacious and untrue" and "an attempt to divert from the matters of law at issue."

Station Casinos added the open meeting claim in January to the lawsuit alleging the city improperly approved plans to allow unrestricted gambling at a site with no hotel at the now-closed Roadhouse casino on Boulder Highway, the Las Vegas Sun reported.

Station Casinos points to state law requiring businesses with unrestricted gambling licenses and 15 or more slot machines to have at least 200 hotel rooms.

City and Roadhouse officials say the Roadhouse is exempt. Station appealed that ruling. Renovation and reopening the Roadhouse have been put on hold pending a resolution to the dispute.

Station alleges that a quorum of City Council members met in private in early January in violation of state law to consider and take action on Sunset's appeal.

The city filed court documents last month saying that a "non-meeting" was held, and that it complied with state law because it was for City Council members and city attorney's to discuss litigation.

"The council is allowed under statute to hear from its attorneys, strategize with its attorneys and offer their opinions and guidance to their attorneys," the city's filing said. "No action was taken at the meeting."

Station Casinos lawyers say they have evidence that meeting participants made a "backroom" decision to deny the company's appeal, despite opposition by two key city staff members, and "contrived to try and circumvent the law."

A community development official communicated with Mayor Andy Hafen and sent a letter the next day rejecting the appeal, Station Casinos charged.