"McCarran Airport Concession Scandal: Federal lawsuit tentatively dropped"

Wednesday, December 13, 2000

AIRPORT CONCESSION SCANDAL: Federal lawsuit tentatively dropped
Former applicant backs away from accusing officials
By FRANK GEARY
Las Vegas (NV) Review-Journal


A federal lawsuit that had the potential to discredit two Clark County
commissioners and resurrect memories of a 3-year-old airport concession
scandal was tentatively dropped Tuesday.

Ayalas Inc., an unsuccessful applicant for a gourmet coffee concession at
the county's McCarran International Airport, agreed to drop a lawsuit that
accused Commissioners Dario Herrera and Yvonne Atkinson Gates of
inappropriately lobbying concession and airport officials so that a
political ally could land the lucrative coffee shop.

"That's good news," Herrera said when told about the case Tuesday. "First of
all, I have spoken with Brian Ayala. We have had conversations about this,
and he has apologized."

County regulations forbid elected officials from interfering with the
selection of an airport concessionaire under the federal Disadvantaged
Business Enterprise program, which is intended to provide business
opportunities primarily for minorities and women.

The lawsuit alleges Herrera and Atkinson Gates inappropriately pulled
strings on behalf of the successful applicant, SB Specialities, a company
owned by Sharyn Brown, wife of Jay Brown, friend and campaign fund-raiser
for Democratic U.S. Sen. Harry Reid.

Ayalas' lawyers, Danny Ayala Jr. and John Benedict, agreed to drop the case
with prejudice, which means the case against Clark County can't be refiled
later, said the county's attorney, Chief Deputy District Attorney Lee
Thompson.

The agreement still has to be signed by U.S. District Court Judge Philip Pro
before the lawsuit can be officially withdrawn.

Neither Ayala nor Benedict could be reached for comment Tuesday morning, but
Benedict left a message on a telephone answering machine. He said, "My
comments are very limited on this, and that is that the parties have
amicably resolved their differences and the case has been dismissed. ... And
that will be my only comment."

The decision comes about two weeks after Thompson requested the case be
dismissed after he received sworn affidavits from Herrera, Atkinson Gates,
Sharyn and Jay Brown. and several airport and concession administrators that
contradicted allegations contained in the lawsuit.

Herrera said he doesn't harbor any ill will for the Ayala family, and is
pleased their concerns were addressed with evidence that showed county
officials didn't do anything wrong. Atkinson Gates and county Aviation
Director Randy Walker couldn't be reached for comment Tuesday.

Sharyn Brown, who is still undergoing the process of being certified as a
disadvantaged business enterprise participant, said Ayalas Inc.'s decision
proves the allegations were baseless. Ayalas Inc. owner Dan Ayala Sr.
already has qualified, and his family operates five concessions at McCarran.

"It says there was nothing there and that they wanted it (the coffee
concession) and were willing to take chances to get it," she said.

Ayalas Inc. filed their complaint the evening of Nov. 6 in hopes Pro would
temporarily halt the County Commission from approving a concession agreement
with SB Specialties the following morning.

Unsuccessful in court, Dan Ayala Jr. repeated the allegations the next day
at a televised commission meeting and then unsuccessfully asked the
commission to postpone approval of the concession until the allegations were
addressed in court.

Herrera and Atkinson Gates denied the allegations when the commission voted
to give the concession to Sharyn Brown, but Atkinson Gates abstained from
the vote in part because of the media attention that surrounded a scandal
three years ago involving concessions at the airport's D Gate.

The state Ethics Commission ruled that Atkinson Gates and Commissioner Lance
Malone shouldn't have voted on concession contracts that had benefitted
personal friends and political allies. Commissioner-elect Chip Maxfield used
the circumstances to discredit Malone in the September Republican primary,
which Maxfield won convincingly.

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