Department of Agriculture denies newspapers' request for info

The Tahoe Daily Tribune and The Record-Courier of Gardnerville, under the Freedom of Information Act, requested a copy of the report on the lengthy probe that concluded in recent weeks.

The papers, owned by Swift Newspapers Inc., got letters Wednesday denying the request. Appeals are planned.

Douglas County commissioners have criticized the way the $38 million piece of property was being used by the federal government. Now that the probe is over, Don Miner, a Douglas County commissioner, said he's upset the information isn't being shared with the public.

"Obviously, the hush order is in; the gag order has been issued to the people involved," added Miner. "That's your government in action. It's pathetic."

The federal government in 1997 gave an Arizona-based land brokerage company, the Olympic Group, private land around Las Vegas in exchange for the 46-acre parcel of land containing the Dreyfus estate.

The Zephyr Cove property has 3,000 feet of sandy beach, a wetland, meadow, creek and several types of sensitive plants and animals.

The U.S. Forest Service reportedly had no interest in the 10,000-square-foot mansion, caretaker's house, garage and other improvements on the property and the agency allowed the Olympic Group to sell them.

The Park Cattle Co., with extensive holdings in Douglas County, bought the buildings with the understanding that a special land-use permit would be issued for a commercial enterprise.

Douglas County officials supported that move because they wanted Park to rent the buildings out for weddings, conferences and other uses that would increase tourism and bring in more tax revenue.

Negotiations stalled last summer when questions arose over an audit by the Forest Service's Pacific Southwest Region's land adjustment program.

The probe started after auditors claimed the property without improvements should have had an appraised value of up to $10 million less, which meant the public would have paid more than fair market value.

David Dickson, special agent in charge of the Dreyfus exchange investigation, said last month that the investigation was over. While declining to discuss details, he said there were no grounds for criminal prosecution.

Forest Service officials from the Lake Tahoe Basin were supposed to be briefed on the report this week. Linda Massey, spokeswoman for the Lake Tahoe branch of the agency, declined to provide details, but added the public would be informed soon.

The Dreyfus estate land swap is separate from another Lake Tahoe Basin exchange involving property formerly owned by New York mutual fund manager Jack Dreyfus. That exchange involves 140 acres south of Sand Harbor containing a medieval-style French chateau known as the Whittell mansion.

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