Carson loses latest appeal in abandoned streets dispute

Carson City has lost again in its battle over whether it can charge property owners for streets and alleys it agrees to abandon.

Capital City Entertainment, owners of Carson Station, and developer Dwight Millard challenged the city, saying they shouldn't have to pay to get back property originally dedicated to Carson City without charge.

The district court agreed, as did the Supreme Court, which ruled the pieces of land adjacent to private property were "dedicated" to the city by the land owners and that the city was simply returning their property to them. Therefore, the court said, the city can't charge for the property.

That decision was upheld on rehearing by the Nevada Supreme Court, but the city filed for en banc reconsideration by the entire seven-member court.

The high court today unanimously denied the petition.

Deputy District Attorney Mark Forsberg said after the decision that the battle isn't over but that he will have to talk with District Attorney Noel Waters and city officials before deciding on the next step.

He said there are also "other defenses" that could be raised in the case.

"We may decide to switch battlefields," he said.

The final decision will affect not only the 1988 Capital City abandonment but two other abandonments, which were paid for years ago. One of those was for a section of street now owned by the Carson Nugget. Another involves a block long section of street abandoned between Highway 50 and John Street to enable construction of the strip mall where Tito's Restaurant is located.

Forsberg said those two abandonments total only about $200,000 but that the back interest the city would have to pay would be substantial.

Both property owners have filed suits to recover what they paid for the land.