BLM scotches deal with Milam

ANOTHER UPDATE, 5/14: The city of Henderson has provided correspondence from City Attorney Josh Reid, attached here, that indicates it would not object to Milam (or his old company, Silver State Land) getting the land. The key part:

As you know, in February the City initiated litigation with SSL and related parties regarding issues relating the Property. As we notified the Solicitor’s Office last month, the City is happy to report that has settled its litigation with SSL and related parties. Accordingly, the City has withdrawn its opposition stated in its November 29th letter to the BLM to the issuance of a patent to SSL to the Property pursuant to the April 4, 2012 Notice of Realty Action. The City understands that the BLM and  SSL have a May 13, 2013 deadline to transfer the patent to the Property to SSL. The City does not, or will not, oppose the transfer of the patent on or before this deadline. So why would the BLM have invoked an executive authority to short-cirucit the deal?

What possible motivation could there have been? That is the rest of the story -- and I am looking into it.

UPDATED WITH CITY MANAGER STATEMENT BELOW

Talk about salt in a wound.

After his deal with the city of Henderson fell apart, after being sued by his fortmer partner and being forced to settle, developer Chris Milam today was informed that he will not get the BLM land.

This is the key paragraph in the letter from the BLM state director to Milam:

"This decision was based on the serious questions that arose subsequent to the BLM's acceptance of Silver State's purchase offer regarding the validity and veracity of the sports arena  development agreement between the City of Henderson and Silver State, and associated representations, that served as the basis for the BLM's decision to utilize a modified competitive sale process for this parcel, as opposed to the competitive sale process under the Federal Land Policy and Management Act (FLPMA). This basis for a modified competitive sale process no longer exists, and there remain unresolved questions about the underlying transaction.  Consistent with the ASLM's decision, BLM will not issue the patent as contemplated by the escrow agreement between Silver State and BLM (as modified) and is taking steps to refund Silver State's purchase deposit and bid guarantee as expeditiously as practicable."

The letter and a memo from the Department of Interior are attached.

I can't believe further legal action is not coming.

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CITY MANAGER JACOB SNOW:

The City respects today’s decision by the BLM to cancel the land sale and not issue a patent to Silver State Land, LLC for the 480 acres of BLM land in West Henderson.  The City appreciates its government-to-government partnership with the BLM and we look forward to continuing to work with the BLM on projects that benefit our residents. 

As the City has settled all of its litigation against Mr. Milam and the other defendants involved in the dispute, we hope that today’s decision will bring closure to the controversy surrounding the arena property.  The City’s primary goal has always been and will continue to be to develop West Henderson in a way that benefits the community the most.  Today’s decision by the BLM allows the City to remain focused on the most appropriate way to develop that land in the future.