Wednesday, Dec. 9, 1998 | 11:15 a.m.
The Boulder City Council has unanimously voted down a referendum request to end the city's lease agreement with the MGM Grand hotel-casino to build two golf courses.
City Attorney Bill Andrews told the council Tuesday night that the three petitions submitted Nov. 24 to the city clerk could not be processed because they ask for the repeal of an administrative act, rather than a legislative one.
City Manager John Sullard said the city has to protect its right to do business, enter into contracts and uphold the state's constitution.
Andrews added the city could face legal action from MGM if it reneged on its agreement that allowed MGM to break ground Nov. 30 on its two golf courses north of U.S. 93.
"We have a contract with MGM and we have a legal obligation to fulfill that," he said.
The petitioners, on the other hand, say their referendum request was a political and moral issue, rather than a legal one.
Barbara Raulston, one of the petitioners, said the petitions served a dual purpose. While she was not surprised at the council's action, Raulston said the petitions also gave residents of the non-gaming community a voice to oppose the lease with the MGM.
Raulston conceded, however, that while she hopes the issue keeps momentum up to the June municipal election, the referendum battle is over for now.
"The only thing we could do now is take them to court," she said. "It's been a long hard battle and we are tired."
The petitioners were asking for the repeal of three ordinances, two of which also would have affected the proposed community-based Red Ridge golf course.
Councilman Bryan Nix said the council has an obligation to the voters to stop what he referred to as an inappropriate process, or the process of determining the validity of the signatures on the petitions.
City Clerk Vicki Mayes said while the petitions were submitted with a different number of signatures, each had more than 700. A minimum of 447 valid signatures is needed for the petitions to be considered by the City Council.
If the petitions had the required number of valid signatures, the council had 30 days to consider repealing the ordinances or sending the matter to a vote by having it placed on the June municipal election ballot.
Andrews, however, said the law is clear and the Nevada Supreme Court has ruled that ordinances changing zoning classifications are not subject to a referendum.
Despite the opposition of some residents, the City Council in August unanimously approved a 40-year lease agreement for the MGM golf courses on city property northeast of the U.S. 95 and U.S. 93 intersection.
Under the terms of the lease, MGM will pay the city $750,000 annually for the courses, which will be designed by the world-renowned Rees Jones.
MGM officials said it will be at least 18 months, or the spring of 2000, before the first player tees off.
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