Venetian, nearby eatery tangle in power play

The Rosewood Grille restaurant on the Strip is all but swallowed up by the Venetian hotel-casino project surrounding it on three sides, but so far it has held its own in a dispute over power poles.

The Venetian has sued the restaurant's owners, members of the LeWinter family, because the family refuses to permit relocation of poles leading to the restaurant that cross the Venetian construction site.

Chief District Judge Myron Leavitt is scheduled to rule Wednesday on a motion that would force relocation of the lines that have served the restaurant since the 1940s.

The lawsuit claims the Sands hotel-casino, which occupied the Venetian site until it was imploded in November 1996, gave permission for the power lines and therefore the Venetian -- under the same ownership as the Sands -- can revoke the permission.

In documents filed today by Rosewood Grille attorney Brian Holthus, the Venetian is alleged to have misled the court by claiming an injunction is necessary because the project has fallen two months behind and the delays will cost millions.

But the documents note that Venetian President and Chief Executive Officer William Weidner publicly stated after its own lawsuit was filed earlier this month that the project is on schedule despite the power line problems.

The Rosewood Grille, sitting on an 89-foot-wide parcel near Spring Mountain Road, wants to expand its restaurant and add a parking garage. But relocating the power lines in the fashion sought by the Venetian would prevent that, court documents state.

The Venetian already has obtained a variance from the County Commission to build right up to the LeWinter family property line.

In addition, Holthus stated that installing new lines would require the restaurant to use generators for a short time and construction would disrupt business.

Rosewood Grille documents claim the Venetian should have investigated the power line rights before designing the resort. Leavitt is being urged to postpone a decision until a full hearing -- with witnesses -- can be held.

In addition to the Rosewood Grille and its family of owners, the Venetian lawsuit names Nevada Power Co. and Sprint, which use the lines.

The lawsuit claimed that attempts to negotiate with the Rosewood Grille for permission to relocate the lines underground or on extended poles at the Venetian's expense were unsuccessful.

The result, according to the lawsuit filed by attorney Mark Solomon, is that construction work scheduled to have begun in March has been delayed and costs have soared. Completion of the resort might be affected and businesses which have contracted for space in the Venetian may be able to file claims for compensation, the legal action noted.

If Nevada Power never removes the power lines, the Venetian would have to be redesigned around the existing power lines, and that would cost millions of dollars and, perhaps, affect financing for the entire project, the lawsuit added.

Nevada Power indicated that it would relocate any power lines to accommodate the Venetian, the lawsuit stated, and "the Venetian acted in reasonable reliance on this representation in beginning a billion-dollar construction project."

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