The report alleges that while doing business with both John Ascuaga’s Nugget and Western Village in Sparks, which is owned by the Peppermill, Salerno voted on the Lazy 8 hotel/casino project – a venture that was fiercely opposed by the Nugget. The complaint states that Salerno had a vested business interest that may have influenced his vote.
Salerno owns Nevada Forms and Printing, which has produced materials for both the Nugget and Western Village. The two companies are part of a portfolio of about 600 other customers and Western Village no longer does business with Nevada Forms.
The commission’s investigation found that for the past eight years, Nevada Forms averaged 12.61 percent of its income from business with the Nugget while business with Western Village accounted for 5.86 percent. According to the report, these percentages were measured the time that Salerno first voted on the Lazy 8 issue, which was Aug. 23, 2006.
The commission’s report states that “ten percent of a business’s income from one source appears to be a significant amount of business,” justifying an ethics hearing by the commission. Salerno's hearing is scheduled for Oct. 9 at 9 a.m. at the Nevada Legislative Building at 401 S. Carson St., Carson City.
Salerno is faced with 10 allegations of misconduct involving both relationships with the Nugget and the Peppermill, doing business as Western Village.
On Aug. 23, 2006, a handbook amendment application for Lazy 8 came before the Sparks City Council for approval. Before voting on the application, Salerno did not disclose his business relationship with the Nugget, the report said. Salerno voted with the majority, 2-3, to deny the handbook amendment. According to meeting minutes, about 40 people spoke under public comment in opposition to the issue at that meeting.
Then, on Aug. 25, 2006, Red Hawk Land Co. filed a lawsuit against the city of Sparks for alleged breach of a 1994 development agreement. At this time the ethics commission found that Salerno did make a disclosure about his business dealings with both the Peppermill and the Nugget before voting with the minority, 3-2, against authorizing settlement of the suit.
At a City Council meeting on Sept. 20, 2006, Salerno again voted against settling with Red Hawk land Co. He did not discuss his business dealings at that meeting.
Finally, on Aug. 27, 2007, the City Council heard Red Hawk Land Co.’s request for the Lazy 8 application again. At this meeting Salerno disclosed his business dealings and again voted to deny the application.
Western Village did business with Nevada Forms until Salerno voted against the Lazy 8 project, according to the report.
The Lazy 8 project is being developed by the Peppermill and Harvey Whittemore, owner of Red Hawk Land Co., the report said.
The ethics complaint against Salerno began on March 6 when Whittemore filed a request for opinion from the Nevada Commission on Ethics concerning Salerno’s business dealings.
“I have been advised by my attorney not to comment,” Salerno said Friday.
Salerno's attorney, Mark Gunderson, was out of the office until for a couple weeks, according to his secretary, and would be unable to comment.
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