Tahoe Lawyer

August 10, 2001

Board to stay the course on beach access


By Rick Adair, Bonanza Staff Write

In the first public hearing on the matter, the Board of Trustees vowed to meet head-on the beach access suit filed against the Incline Village General Improvement District.

The suit asks for declaratory relief for some local residents who are denied access to Incline and Burnt Cedar beaches by a deed restriction. The suit was filed July 24 by 2001 Beach Access, Inc., a nonprofit corporation made up of Cal-Neva Resort owner Chuck Bluth and others, and served on IVGID July 27.

"There is a general consensus that we need to defend this vigorously and back up the votes we made," said board Chair Kenny Kinsman.

Restricted access to the beach was affirmed by the Board of Trustees April 11 in a 3-to-1 vote, with trustee Bob Wolf opposing and trustee Ted Fuller away on holiday.

Kinsman added that IVGID had started a search for outside litigators who would assist if the case goes to trial.

"If it ever gets (that) far we'll get some hired guns," he said.

During comments on the case, IVGID general counsel Scott Brooke characterized the suit as "flawed," and asserted that the non-profit corporation had no standing to file the suit.

"The plaintiff (2001 Beach Access, Inc.) , as formed, has no interest," he said. "It has no property and is not a resident."

On the other hand, Brooke said, many residents within IVGID are "proper parties" to such a suit because they each have an easement right to beach access that transfers with their properties.

Brooke said he would meet with trustees one or two at a time to discuss the matter in confidential conferences protected by attorney-client privileges, but added he would provide ongoing information to the general public as appropriate.

Also present at the meeting were attorneys Mike Johnson, representing Incline resident Maryanne Ingemanson, and Tom Hall, representing Incline residents Claude and Sandra Gaubert, whom Hall has said oppose opening beach access. Although neither attorney offered comments during the meeting, in recent comments, Ingemanson said she and a group of others would "definitely be intervening" in the case.

However, these attorneys have been retained by the Village League to Save Incine Assets, Inc., a non-profit Nevada corporation, to reply to the 2001 Beach Access, Inc., lawsuit.

Public comment during the meeting overwhelmingly reflected a sentiment that the suit was brought by Crystal Bay interests, with little or no participation by residents from the other, smaller portions of IVGID that do not enjoy beach access. However, because corporation board member Chuck Bluth said he was going to keep the 2001 Beach Access, Inc., membership list private for the time being, this cannot be substantiated.

The public comments also focused the propriety of granting Crystal Bay properties any recreation privileges at all, and on the right of trustees to convey IVGID assets such as the beaches to third parties.

IVGID resident Tom Menning, who took out an advertisement in the Aug. 8 *Bonanza* announcing the formation of the League to Protect Our Deed, said no document explicitly granted recreation privileges to the merging CBGID properties, and that this made the board which granted them culpable in events that lead to the filing of the beach access law suit.

IVGID counsel Brooke said repeatedly during the meeting that the merger was proper and legal, and that language in the enacting county ordinance, No. 928, implied the granting of all recreation rights to the former CBGID properties, except beach access. The relevant passage, in Section 3, states:

"The surviving District as hereby created shall have all the powers and purposes of the former CBGID as provided in Ordinance No. 199 ... and all the powers and purposes of IVGID as provided in Ordinance No. 397, as amended, and as provided in Ordinance No. 84."

In a telephone interview Tuesday, Washoe County District Attorney Madelyn Shipman said, in her opinion, state law implied that the merger granted CBGID properties owners the same rights and privileges enjoyed in by owners in the pre-merged IVGID, unless explicitly denied