Regents prepare for impact of fire academy lawsuit

RENO, Nev. - University regents are preparing for potentially costly lawsuits over the defunct Fire Science Academy in Carlin.

Regent Steve Sisolak of Las Vegas said he's considering a plan to create a reserve fund in the event the university system loses its case against the academy owner.

''What if we lose in three years and then we're $9 million in the hole?'' he asked. ''It might be prudent to look at establishing something.''

The University of Nevada, Reno's academy, located 20 miles west of Elko, was designed to train firefighters from across the country.

But earlier this year, UNR closed the 18-month-old facility after tests showed gasoline additives and components were seeping into the soil at the site.

UNR ceased sending $250,000 monthly rent checks to the owner and filed a lawsuit claiming the owner needed to make millions in environmental repairs.

The owner, All-Star Investments LLC, claims it was not completely at fault and filed a countersuit.

''I don't want to be a pessimist, but this litigation could take years,'' Sisolak told the Reno Gazette-Journal. ''(The unpaid rent) is already $1 million and we haven't done anything (to resolve the lawsuits) yet.''

The regents' audit committee, which Sisolak chairs, will discuss the proposed reserve fund at a meeting Thursday in Las Vegas.

It's uncertain how much would be put in the fund or where the money would come from.

Ashok Dhingra, UNR's vice president for administration and finance, declined comment on the plan.

''The university is in litigation with All-Star and it would not be appropriate to comment right now,'' Dhingra said.