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Top Story

Dec. 03, 2008

Suit claims Pahrump no Shangri-La

By MARK WAITE
PVT

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The Oasis at Shangri-La destination resort project planned on the west end of Highway 372 has been pending for so long, it's become a local example of procrastination.

Now, a lawsuit filed in federal court by Jerry Wang and the Forum Group Sept. 19 claims Nye County and Pahrump town officials discriminated against Wang, a Chinese-American, in denying the project.

Wang's suit names as defendants Nye County, the county planning department, the Pahrump regional planning district (sic), County Manager Ron Williams, the county commission, Commissioner Peter Liakopoulos, former acting Planning Director Cheryl Beeman, the town of Pahrump, the Pahrump Town Board and town board Chairman Laurayne Murray.

The suit "a culture of racial discrimination fostered by Nye County's local governmental divisions, agencies and officials, all acting under color of law and choosing to violate plaintiff's rights."

The suit claims the passage of the so-called "English only" ordinance by the town board Nov. 15, 2006, (although repealed three months later) underscored a culture of racial discrimination in Nye County government.

According to the suit, in Sept. 20, 2006, after spending over $100 million and countless hours of effort, Wang "experienced first-hand, Nye County local government's propensity for racial discrimination when the Nye County Board of County Commissioners terminated the subdivision improvement agreement between itself and Forum Group, thus halting the development of The Oasis at Shangri-la."

Wang owns 75 percent of the Forum Group; the remainder is owned by several Chinese nationals, the suit states. Wang owned more than 285 acres on both sides of Highway 372 before transfering ownership to the Forum Group in 1995.

The Oasis at Shangri-La was to include nine Asian-themed villages with an aquatic resort as the focal point.

During an interview in 1999 with the Las Vegas Review-Journal, Wang said it would be a $2.2 billion resort community on 285 acres straddling Highway 372. The Oasis would have 261 single-family homes, 480 multi-family residences, 112 acres of commercial property, a nine-hole golf course with lakes, a neighborhood park, water and sewer facilities.

Back then, Wang predicted he would break ground on the first phase, an 80-unit condominium complex, in October or November 1999. He disclosed major backers were coming from Japan and Taiwan, he also touted a $160 million loan from the U.S. Department of Housing and Urban Development.

Wang originally pitched his idea to the Pahrump Town Board back in 1992 and received its blessing. For the next seven years, Wang prepared documents needed by the Nye County commission.

A commercial subdivision map was recorded May 25, 2000.

The suit states Forum Group was ready to begin constructing an RV park, convenience store/gas station and an 80-unit apartment complex as part of phase I of the project. The project was held up by the Nevada Department of Transportation as the state was planning to widen the highway, the suit claims.

NDOT never did widen the highway, but the project was delayed more than three years.

Williams, as the former county manager, told Wang in 2003 or 2004 that, despite the fact the county commission already approved his RV park, an ordinance was passed in Pahrump imposing a moratorium on construction. After that, the suit claims, two other RV parks were nevertheless constructed in Pahrump.

"Throughout the development process, Williams often made comments that the project would never develop and despite evidence to the contrary, plaintiffs would never receive the financing necessary to complete the development," the suit states.

It claims Williams at one point instructed the building department to throw away plans for the convenience store and gas station.

The Forum Group was granted an extension of the subdivision improvement agreement by the county commission on March 1, 2005, because of the delays. But the suit claims, Beeman, the acting planning director, told the county commission nothing had been done since the map was recorded in May 2000, neglecting to inform them about the delay in acquiring the encroachment permit.

Wang then asked former Pahrump Town Board member Ed Bishop sometime in 2005 or 2006 about sponsoring an item on the Oasis at Shangri-La on the agenda. Murray reportedly told Bishop that, "If Wang wished to speak at the (Pahrump Town Board's) next meeting, he would have to have someone speak for him as she could not understand him."

The suit notes Wang is fluent in English but does speak with an accent.

During the Sept. 20, 2006 county commission meeting, Wang, appearing with his attorney, had to return to Las Vegas for an emergency and was told his request for an extension to a subdivision improvement agreement would be continued to the next meeting.

Instead, the commissioners voted to terminate the agreement.

Minutes from that commission meeting reviewed by the Pahrump Valley Times show that former Commissioner Patricia Cox noted some progress had been made on the project from Jan. 26, 2006 to July 13, 2006. But commissioner Joni Eastley voiced her opposition to granting an extension, citing the failure of developers to comply with requirements to have improvements related to the subdivision agreement and parcel map improvements completed by Sept. 1, 2006.

Williams reviewed a letter from the Nevada Division of Environmental Protection and said the county held a deed of trust to a piece of land for the project as collateral. Williams said he felt continuing the item to a future meeting wouldn't accomplish anything.

"Commissioner Eastley stated that maybe the best thing to do would be to deny the extension and wipe the slate clean and let them start over again," the minutes state.

Nye County Chief Civil Deputy District Attorney Ron Kent is quoted as saying the county commission had made it clear there would be no more extensions.

Beeman told Eastley a conceptual plan was submitted for the project.

In 2007, Wang attempted to set up a meeting with the Pahrump town manager, a Pahrump Town Board member and Liakopoulos. On the day of the meeting, all three officials who agreed to attend canceled, the suit claims, without identifying them.

"Liakopoulos specifically stated to Bishop that he wanted nothing to do with Wang, Forum Group or The Oasis at Shangri-La and further stated he felt they did not belong in Pahrump," the suit claims.

The Nye County Planning Department informed the appraisers and lenders the project wasn't feasible and all the permits had expired, without holding a hearing or meeting, the suit claims.










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