Probe stalls action on use of Dreyfus estate

"We're conducting a criminal investigation into the matter," said David Dickson, special agent in charge of the case. "Essentially we're looking into the way the transaction was made."

Dickson added Monday that the U.S. Forest Service, which controls the estate land at Zephyr Cove, has been quiet on the subject because of the probe.

"The Forest Service has been asked to basically cut off any dealings in the matter until the criminal investigation has been completed," he said.

But Douglas County Commissioner Don Miner said the pending investigation shouldn't hold up an effort to issue a permit for use of the estate buildings.

Last year, the Bureau of Land Management bought the land on which the Dreyfus estate is located, with the help of a group of land-exchange experts called the Olympic Group. BLM transferred management of the land to the Forest Service.

The Forest Service then authorized the Olympic Group to sell the estate buildings, and Miner says the Park Cattle Co. bought the buildings with the understanding that a special use permit would follow. But he said the Forest Service then reneged on the deal.

Park Cattle Co. wanted the estate, which borders the Zephyr Cove Marina and includes a 12,500-square-foot house and six-car garage, to be operated as a bed and breakfast. The site is separate from other estate property to the north, near Sand Harbor.

Miner described the situation as "classic bureaucratic stall-tactics from vacillating decision-makers."

Douglas County wants the estate, which was purchased for about $30 million, to open as a commercial business because of the property taxes it could bring to the county.

"Our position is that we think it could be used for an ongoing economic enterprise and still have the same property value," said Commission Chairman Jacques Etchegoyhen. "If that doesn't happen, $30 million in appraised property tax value goes to zero."

U.S. Sen. Richard Bryan, D-Nev., is scheduled to meet with commissioners on Wednesday, and board members say the Dreyfus estate definitely will be a topic of discussion.

"Land exchange will probably take up a lion's share of the discussion," Etchegoyhen said, adding the issue "is sort of a big deal."

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