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DeSalvio’s Ward 6 council race heads toward perfect ethical storm

John L. Smith
John L. Smith
Opinion
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Laborers Local 872 President Big Lou DeSalvio could have a big conflict coming if he prevails in the crowded race for Las Vegas City Council in Ward 6.

DeSalvio’s dilemma is barely hidden inside the city’s ongoing battle with EHB Cos. over the fate of the planned development of the former Badlands Golf Club course in the upscale Queensridge neighborhood. A flurry of lawsuits have been ongoing since 2015 with a seven-figure cost to the city in legal fees alone. 

Late last year, Clark County District Judge Timothy Williams found the city liable for blocking the company’s 35-acre housing development plan and ordered it to pay approximately $34 million. The city has announced its intention to appeal, even as other related litigations head toward court.

If things don’t go the city’s way, or a reasonable settlement fails to be reached, it could easily be on the hook for more than $100 million. EHB owns approximately 250 acres in the immediate area and has a long-term development plan. The city’s potential liability is withering.

For its part, Local 872 entered the Badlands fray publicly in 2018 when it campaigned hard to recall one of the development’s vocal critics on the council, Steve Seroka. The union was responsible for $175,000 of the $207,500 raised by the Committee to Recall Councilman Steve Seroka. Pugnacious Local 872 Secretary/Treasurer Tommy White promoted “Recall Corrupt Councilman Seroka” signs and launched a stopseroka.com website during the effort. At the time, it made some wonder who was really paying for the Seroka recall.

Local 872 went so far as to spend thousands of dollars to file a pro-developer lawsuit in February 2019 against the city and Councilmen Seroka and Bob Coffin, who did not seek re-election. Seroka resigned from office in March 2019 after being accused of sexual misconduct and was replaced by Local 872 darling Victoria Seaman, who fronted the recall effort. The lawsuit was quietly dismissed in March 2021.

It all added up to a big win for Big Lou, Local 872, and EHB. 

That doesn’t preclude union executive DeSalvio from running for city council, but a victory certainly would complicate his service to his Ward 6 constituents and the labor organization. After all, the city is still fighting the Badlands battle.

If that was the only ethical complication coming for DeSalvio, he’d probably be a favorite to weather questions of conflict. It’s not as if city hall isn’t swimming in them.

But Local 872 has a deeper tie to EHB through its Laborers — Construction Industry Health and Wellness Clinic at 7135 W Sahara Ave. One look at the sign out front, with its Local 872 insignia and LIUNA header, and there’s no mistaking that you’re about to enter a union medical facility.

Local 872 first opened the member health clinic in 2009 with a stated goal of improving medical care and controlling costs. In 2011, Local 872 listed the building as an asset worth $1.6 million, and the Clark County Recorder’s Office gave it an even higher value at $2 million. Given rising costs of healthcare, it seemed like a solid benefit for the rank-and-file and a valuable asset for Local 872.

In July 2019, the heart of the Badlands battle, the Sahara property was purchased by MS Northwest Land Co. LLC for $6.5 million. In December 2019, the listed owner was 7135 Sahara LLC. The union maintains its medical facility through a rental agreement, according to its records.

Both limited liability companies list EHB Companies LLC as its manager. They show Vickie DeHart as their registered legal entity contact, according to the secretary of state. DeHart is a principal executive managing partner at EHB along with Paul DeHart and Yohan Lowie.

It was Vickie DeHart who so eloquently explained EHB’s view following Williams’ decision: “This has been a six-year battle that has taken all of our resources. … It is wonderful to see justice prevail and the courts uphold our constitutional rights. A win for us is a win for all landowners.”

Was it also a win for Local 872?

These days DeSalvio’s council campaign hums along with the help of $112,500 in 2021 contributions, according to the secretary of state. Of those, at least $50,000 is directly linked to Laborers union locals and related PACs. There’s also a $5,000 contribution from 7135 Sahara LLC, but I guess that’s what political friends are for.

For a council race, that’s money to burn.

As chairman of the Las Vegas Planning Commission following Councilwoman Michele Fiore’s appointment, DeSalvio knows his way around city hall. He also knows that low voter turnout traditionally makes council races winnable by collecting just a few thousand votes. 

He’s taken some lumps as a candidate, but has been active in helping to craft the city’s 2050 master plan and has served on a number of community boards. Although DeSalvio has lost three campaigns as a Democrat for Assembly and once for Clark County clerk, he’s hoping to change his luck by running as a Republican in the council race.

If DeSalvio is concerned about a potential possible conflict in his future, he’s not showing it.

When I followed up on an email seeking comment with a cell call, I caught up to him as he campaigned door-to-door on a warm Friday afternoon. He said he would get back to me.

John L. Smith is an author and longtime columnist. He was born in Henderson and his family’s Nevada roots go back to 1881. His stories have appeared in Time, Readers Digest, The Daily Beast, Reuters, Ruralite and Desert Companion, among others. He also offers weekly commentary on Nevada Public Radio station KNPR.

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