There are 10 allegations of ethics violations against Salerno. These include taking part in the vote and failure to "disclose the potential conflict" of his business relationship with the Nugget. Salerno was originally confronted with 14 allegations concerning his relationship with the Nugget, however four of those allegations were dismissed. The complaints were brought against Salerno himself and the city of Sparks was not named as a defendant.
The complaint was filed by Harvey Whittemore, the owner of Red Hawk Land Co. and developer of the Lazy 8 hotel-casino. The Nugget and some Sparks citizens opposed the construction of the project.
Salerno's attorney could not be reached and Salerno declined to comment.
At this time, Sparks City Attorney Chet Adams said "there's been no determination made by the (Nevada Commission of Ethics)."
The commission has filed an investigative report, Adams said, that states "just and sufficient cause" exists for a hearing to be held on the matter.
The report states that Salerno's Nevada Forms and Printing company has maintained a working relationship with the Nugget, which paid the company more than $258,000 for its services from 2005 to 2007. His company also does business with the Peppermill.
"Some allegations deal with (Councilman Salerno) not disclosing his relationship with the Nugget soon enough," Adams said. "Some are not disclosing his business with the Peppermill.”
The report states that Salerno submitted an opinion that cites his business with the Nugget and Peppermill have "fluctuated" over time and are "part of a portfolio of approximately 600 other customers." He also responds by writing that he did not discuss the Lazy 8 with his customers prior to the Aug. 23, 2006, City Council meeting and therefore had no knowledge of the citizens' opposition to the project.
After the City Council’s vote to reject the project in 2006, Red Hawk sued the city for $100 million. The lawsuit has since been settled and the project later approved by the city.
In August of 2007, the Nevada Commission on Ethics ruled that Sparks Councilman Mike Carrigan inadvertently violated ethics laws in his vote on the Lazy 8 project. The ethical conflict stemmed from his relationship with his campaign manager, Carlos Vasquez, who works for Red Hawk. The city of Sparks received an order Wednesday to expedite the appeal of the matter with the State Supreme Court. Briefs were filed today.
According to Adams, most appeals processes take about two years.
"(Salerno's investigation) is not similar to Carrigan's in that Carrigan made a full disclosure prior to making a vote and the commission said, 'Well, you should have abstained based on certain laws that we believe and are still maintaining are unconstitutional.' "
Salerno's hearing is scheduled for Oct. 9 at 9 a.m. at the Nevada Legislative Building at 401 S. Carson St., Carson City.
Adams said there are other pending lawsuits in the Lazy 8 matter, one of which is in the Nevada Supreme Court and three in district court that have been "consolidated and stayed" until the Supreme Court decision has been made.
[This article was updated July 24 at 11 a.m. to include up-to-the-minute information and we will continue to update the story as more information becomes av available.]
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