Judge denies motion on re-evaluation of Mob Museum

By Kyle B. Hansen

Thursday, July 16, 2009 | 1:34 p.m.

A judge has denied a motion from an unsuccessful bidder for the Las Vegas Mob Museum that was seeking to have the Las Vegas City Council re-evaluate its bid for the project.

Flagship Construction Co. has claimed the city wrongly awarded an $11.5 million construction contract for the museum to a competitor.

Clark County District Court Judge Susan Johnson today denied Flagship’s motion for a preliminary injunction. She also removed a temporary restraining order against the city.

Flagship had sued the city of Las Vegas in Clark County District Court, saying it twice was the lowest responsible bidder for the job -- but that the work was eventually wrongly awarded to competitor APCO Construction for $11.5 million.

Las Vegas City Attorney Brad Jerbic said the city and APCO have a pre-construction conference scheduled for July 24 and that construction on the second phase of construction could start as soon as the next day.

Mark Ferrario, of the firm Greenberg Traurig, which represents Flagship, said he was unsure if the company would appeal the judge’s decision but that it would decide on its next move by early next week.

The Mob Museum, officially called the Las Vegas Museum of Organized Crime and Law Enforcement, is to be developed at the old U.S. Post Office and Courthouse Building on Stewart Avenue.

The first phase of construction, which was asbestos removal and other preparation work, is complete, Jerbic said. The second phase of construction includes historic renovation the building and other improvements, he said.