U.S.

Department of Justice

Civil Division

Commercial Litigation Branch

John R. Kresse P.O. Box 875, Ben Franklin Station Tel.: (202) 616-2238
Trial Attorney Washington, DC 20044-0875 Email: john.kresse@usdoj.gov

August 18, 2017

By E-mail

Mary-Anne Miller, Esq.

County Counsel
Office of the District Attorney, Clark County, Nevada
Mary-Anne.Miller@clarkcountyda.com

Re: Clark County, Nevada lease to Nevada Links, Inc. of lands subject
to Southern Nevada Public Land Management Act

Dear Ms. Miller:

On behalf of the United States Department of the Interior (Interior), the United States
Department of Justice hereby demands payment of $75,536,455 from your client, Clark County,
Nevada (the County). This amount is owed to the United States for underpayment of rent
proceeds resulting from the Fourth Amendment to the lease between the County and Nevada
Links, Inc. dated September 6, 2011. The debt consists of underpaid rent proceeds to date of
$12,455,121, plus interest, plus the present value of projected underpayments through the term of
the lease of $62,863,332. In addition, the County will be liable for prejudgment interest.

This underpayment exists because the lease provides for rent that is far below the fair
market value rent required by: section 4(g) of the Southern Nevada Public Land Management
Act, of 1998 (Act), Pub. L. No. 105-263, 112 Stat 2343 (Oct. 19, 1998); a 2004 memorandum of
agreement between the County and Interior; and the 1999 deed by which the United States
transferred to the County most of the land subject to the lease.

The County is liable because any section 4(g) lands that are sold, leased, or otherwise
conveyed by Clark County . . . shall be sold, leased, or otherwise conveyed for fair market
value, and the County shall contribute 85 percent of the gross proceeds from the sale, lease, or
other conveyance of such lands directly to the special account in the United States Treasury for
use by Interior. Act 4(g)(4). As you know, on multiple occasions Interior has stated its
Mary-Anne Miller, Esq.
August 18, 2017
Page 2

concerns to the County about the Countys compliance with the Act regarding past leasing
activities.

To make arrangements to pay or to discuss compromise of this debt, you may contact me
or my colleague David DeCelles. (Do not contact officials or attorneys at Interior.) To avoid
prejudgment interest, payment is due on or before September 1, 2017. The Department of
Justice will consider a payment plan for the full amount of the debt. In addition, the Department
may only compromise this debt because of litigation risk or inability to pay. If a payment plan is
agreed to, including because of a compromise based on inability to pay, the County will be
required to make detailed financial disclosures to support such an agreement.

Sincerely,

s/John R. Kresse

John R. Kresse

cc: Paul B. Smyth, Perkins Coie LLP (PSmyth@perkinscoie.com)

Marcus G. Faust (MarcusFaust@msn.com)
Luke Miller, U.S. Department of the Interior, Office of the Solicitor
David H. DeCelles, U.S. Department of Justice
(all by E-mail)