Davidson’s fee seemed ‘very reasonable,’ developer testifies

Davidson’s reputation preceded him. He was “very good, very knowledgeable,” Hui told jurors Friday in Davidson’s corruption trial in federal court.

“Davidson knew a lot of people, he knew how to talk to the right people,” Hui said.

The two forged an agreement. Hui would pay Davidson $25,000 before Clark County commissioners voted on the zone change, and if they approved it, Davidson would receive an additional $25,000.

Hui did not believe the fee was exorbitant. He realized that commercial zoning would increase the value of his property significantly, he said. He needed someone with expertise in planning and real estate.

“To me, it was very reasonable,” Hui said.

Davidson is charged in a 2005 indictment with depriving Clark County residents of their right to receive honest services from public officials because he was allegedly involved in a conspiracy with former Clark County commissioner Erin Kenny. Davidson, whose charges include conspiracy, mail fraud and money laundering, allegedly paid off Kenny for her votes on zoning matters.

Hui testified that Davidson preferred to be paid with cashier’s checks. He never asked his consultant why he preferred that method of payment or questioned how Davidson spent the money.

But Assistant U.S. Attorney Daniel Schiess offered his theory.

Schiess told jurors in his opening statement Thursday that after commission votes, Davidson delivered thousands of dollars in cash to Kenny, who successfully lobbied in favor of Hui’s zone change requests.

Schiess explained that on March 21, 2001, commissioners agreed to convert the zoning on Hui’s 5-acre property at Fort Apache Road and Maule Avenue to a commercial designation.

Two days prior to the commission meeting, Hui wrote Davidson a check for $25,000. On March 25, 2001, Hui wrote a check to himself for $25,000. On the check’s memo line, Hui wrote, “For Don Davidson.”

Hui said the check was converted into a cashier’s check and delivered to Davidson.

Schiess has maintained that days later, Kenny and Davidson met. Davidson handed the commissioner an envelope.

“He said, ‘This is from the China man,’ ” Schiess has said, referring to the term Davidson used when talking about Hui. “She (Kenny) finds thousands of dollars in cash.”

Kenny pleaded guilty in 2003 to accepting bribes from strip club owner Michael Galardi. She has since worked with the government in its ongoing political corruption investigation.

Last year, Kenny testified at the trial of former colleagues Dario Herrera and Mary Kincaid-Chauncey, who were ultimately convicted of pocketing bribes from Galardi.

During her testimony, Kenny told jurors that she received about $200,000 from Davidson during her tenure on the board. She also said Davidson delivered to her an additional $20,000 from a developer Davidson referred to only as “China man.” Hui was born in Hong Kong.

Hui hired Davidson on two occasions to act as a go-between before the county commission on zoning matters. Both times, Hui’s zone change proposals passed.

Davidson’s attorney Dominic Gentile indicated factors other than Davidson might have influenced Kenny’s vote.

He pulled campaign contribution records that showed Hui wrote $15,000 worth of checks to Kenny during her unsuccessful bid for lieutenant governor in 2001 and 2002.

Gentile also asked Hui whether he ever hired attorney Chris Kaempfer and land use consultant Greg Borgel to represent him during commission meetings. Gentile suggested that the tight relationship Kaempfer and Borgel established with Kenny might have affected her vote.

Hui acknowledged that the men had represented him in the past, but he did not remember if they pitched to commissioners the two zone changes involving Davidson.

Earlier Friday, Gentile and Schiess attempted to show who exactly initiated a master plan amendment for the Spring Valley community in 2001. Changes to the plan paved the way for a controversial CVS Pharmacy that neighbors strongly opposed.

The indictment against Davidson claims he paid Kenny $200,000 after she helped push through the land use amendment and subsequent zone change on the property at Buffalo Drive and Desert Inn Road.

Davidson claims developer Tommy Fehrman, who was in the process of buying the land, paid Kenny.

Gentile indicated Friday that county planners had already started the process to amend the master plan — an overall guide that designates what uses are most suitable for land across the valley — when the zone change proposal was submitted.

Schiess showed that the process was in the works, but emphasized that the amendment process dealt specifically with language and policies in the plan. Clark County planner Lebene Aidan-Ohene testified that changes to the zoning map were not to be considered.

After nearly a dozen public hearings, the commission was set to approve the changes on May 16, 2001, when Kaempfer came forward and requested that the zoning designation on two parcels be changed.

Never before had the request been made or discussed, Schiess said. Yet after a motion by Kenny, commissioners approved the amendments.

One of the parcels involved was the CVS Pharmacy land. The master plan amendment simplified the zone change process as the CVS proposal now conformed with the master plan. The second parcel of property was owned by then-District Attorney Stewart Bell.

Deputy District Attorney Rob Warhola testified that he later issued a memo to commissioners saying the vote violated the county’s notification laws. The agenda did not mention potential zone changes to specific parcels and the public was not notified, he said.

The vote was nullified, but eventually brought back and approved.

Kenny is expected to testify about her role in the land deals involving Davidson next week. The former commissioner’s plea agreement allows for a more lenient sentence if she provides substantial assistance to the government. Her sentencing is scheduled for July 11.