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Nye County Planning Department

250 North Highway 160, Suite 1


Pahrump, NV 89060
Phone 775-751-4249 ∙ Fax 775-751-4324

18-026-DL (L)

March 9, 2018

Dennis Hof
Crystal 40, LLC
162 Garnet Circle
Carson City, NV 89706

Re: Cherry Patch LLC and Privilege License No. BR 10-000605


300 Appaloosa Lane
Crystal, NV 89060

Dear Mr. Hof:

This letter is in follow-up to my letter of February 23, 2018, and the subsequent suspension of the
brothel license for Cherry Patch, LLC, on Monday, February 26, 2018. The 2/23/2018 letter was
provided to let you know about compliance with the issues that were identified in the 2/20/2018 Show
Cause hearing; specifically, any outstanding issues regarding your compliance with the building codes
and local and state laws, and which led to the suspension of your brothel license. You will recall that
the Planning Department determined that the bar, restaurant and entrance area were in substantial
compliance with those various ordinances and laws, but that the brothel area was not in compliance,
based on no permits and installation stickers on manufactured buildings, which encompassed, among
other things, serious building and fire code issues.

In addition to the manufactured housing and building code issues, at the February 20, 2018 meeting, the
Board voted to allow you 90 days to come into compliance with the issues raised in Item Nos. 1, 2 and
3. Item No. 1 addresses your trespass of a sign located in the BLM right-of-way at the corner of
Appaloosa Lane and Ranch Road. While you have 90 days to correct that situation, I would inform you
that contrary to representations made by you, Zack and Mr. Risman that you have a lease with BLM to
allow the sign to stay in the right-of-way, we have information from BLM that they have not agreed to
a lease, and moreover, they are not permitted to lease their property for such purposes. BLM has no
record showing a right-of-way has been granted to you or previous owners. I am providing that
information to you as a courtesy to allow you to be prepared when the 90 days expires. However, BLM
tells us that Zack was already told this a few weeks ago, so I am at a loss as to why he would make
those representations under oath.

I would remind you that by Zack Hames' sworn testimony at the February 20, 2018 Board meeting, and
in subsequent conversations with him, he stated that the manufactured homes used for operating the
brothel had been altered by "stick-built additions." Inconsistent with Mr. Hames' statements made
under oath about "stick-built additions," he also said there had been no changes to the structures since
they were initially licensed at the time of your purchase of the property in 2010. The only change,
according to Zack, was that the Joe Richards residence was swapped out for your residence, and there
were insignificant changes, mostly paint. As outlined below there have been changes made to this
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March 9, 2018

property. The Nevada State Fire Marshal (SFM) with Nye County and others did an inspection on
3/7/2018. In this inspection the SFM found 33 violations but more importantly he indicated he has no
jurisdiction over the issues from the Show Cause hearing and his findings do not change the
determination that you have not addressed Item 4 which was the subject of the approved motion from
the Show Cause hearing on 2/20/2018

The issue which caused the suspension of your license was Item No. 4 relating to violation of NAC
489.405(1), which holds:

No manufactured home, mobile home or commercial coach that is moved from one location to another
may be occupied as a dwelling unit or otherwise unless a certificate of installation and a matching label
has been issued certifying that the manufactured home, mobile home or commercial coach has been
installed in accordance with NAC 489.400 to 489.416, inclusive.

Zack stated in the meeting that he had discussions with Nevada Manufactured Housing Division and
had this resolved; however, to date you have not provided evidence of install stickers or a letter stating
they were not required.

Other relevant laws are dispositive as to your compliance:

NRS 461.210 Approved building may not be modified without prior approval from Division.
No factory-built housing or manufactured building bearing a division insigne of approval pursuant to
NRS 461.190 may be in any way modified before or during installation unless approval is first obtained
from the Division.

NAC 489.460 “Attach” defined. (NRS 489.231, 489.261) As used in NAC 489.460 to 489.486,
inclusive, unless the context otherwise requires, “attach” means to fasten a structure, including, without
limitation, an awning, carport, steps or porch, to a manufactured home or mobile home in such a
manner that the structure is dependent upon the manufactured home or mobile home for any part of its
structural support.
NAC 489.470 Attachment of structure: Restrictions; application for approval. (NRS 489.231,
489.261)

1. A person shall not attach a structure to a manufactured home or mobile home unless:
a) The structure is an awning, carport, steps or porch that is constructed of a light-weight
metallic material;
b) The attachment complies with all applicable technical codes; and
c) The person first obtains the approval of the Division.

2. An application for approval of the attachment must be accompanied by two copies of the plan
for the attachment. The Administrator will keep a copy of the plan for at least 2 years after it is
submitted to him or her. The Administrator will approve or deny the application within 15 days
after receiving it.

3. Any structural element of an attached awning, carport, porch or steps must be constructed or q
installed in accordance with the plan approved by the Division.

NAC 489.486 Construction of certain additions or alteration of certain systems: Restrictions;


application for approval. (NRS 489.231, 489.241)
18-026-DL (L) Page 3 of 5
March 9, 2018

1. A person shall not:


a) Construct a room, garage or other addition that is freestanding or adjoined to a
manufactured home or mobile home if the room, garage or other addition is directly
accessible from the manufactured home or mobile home; or
b) Alter or reconstruct the structural, electrical, mechanical, roofing or plumbing system of a
manufactured home or mobile home, unless the person first obtains approval from the
Division.

2. The application for approval must be on a form provided by the Division and include:
a) Two copies of the plans for the work to be performed;
b) A copy of each applicable certificate, label or permit; and
c) Any other document required by the Division or local governing body.

3. Any construction, addition, alteration or reconstruction must:

a) Comply with all applicable technical codes; and


b) Be completed in accordance with the plans as approved by the Division and the local
governing body.

NRS 461.210 Approved building may not be modified without prior approval from Division.

No factory-built housing or manufactured building bearing a division insigne of approval pursuant to


NRS 461.190 may be in any way modified before or during installation unless approval is first obtained
from the Division.

Attached you will find a sampling of documents which support our contention that Love Ranch is not
in compliance with some or all of the above-referenced statutes and codes. First, I am providing you
with documents from the Nye County Assessor's Office, dated September 19, 2014. Those forms and
documents were drafted as part of an inspection that was conducted, which revealed that after your
purchase of the property, the square footage of the brothel increased from 2,635 square feet to 3,893
square feet. That increase was related to added breezeways, walkways and other additions outlined in
the documents. Those documents are identified as Exhibit No. 1 to this letter.

You will also find attached a series of aerial photographs taken at various times after you purchased the
property. You can see that after your purchase of the property, changes and modifications took place
which violate the statutes and codes which are cited above. Along with those various aerial
photographs, we have provided annotations which point out with specificity some of the more obvious
changes which trigger the codes and statutes. See Exhibit No. 2.

In addition, we would direct you to the following YouTube link for your review.
https://m.youtube.com/watch?v=V--6sP6cxzM. That link will connect you to an April 28, 2013
interview with Heidi Fleiss where she gives a tour of Love Ranch, where she proudly shows off the
major renovations at your property, many of which require proper permits and inspections, and none of
which Nye County has a record. The video is also inconsistent with Zack's representations under oath
that any changes were minimal and did not trigger the requirements of the various codes and statutes.

To summarize, the Love Ranch remains noncompliant with the various statutes, codes and regulations
cited above. You will need to hire a licensed engineer or architect, and submit applications and plans
stamped by the licensed professional. You have seven residential manufactured homes, none of which
have an installation sticker, and all appear to have been modified, including added hallways and room
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March 9, 2018

additions. They are all used in commercial occupancies. None have ever been compliant with law, so
no grandfathered status will apply. Under those circumstances, the engineer or architect must submit a
set of plans showing what changes will be required to come into compliance. As we have discussed
over the past several months, there are no stickers which are required. It is your obligation to hire an
appropriate professional, draw up as-built plans, identify the use for each building, propose a plan that
is compliant, submit an application, pay an application fee, and hire a contractor to build what is
approved. Any changes or variances in that status must come from the Liquor and Licensing Board or
the appropriate administrative agency.

Lastly, I want to refer you to Nye County Code §9.20.110. Sections A and B read as follows:

A. The Board, as defined in this chapter, is the full and sole authority empowered to grant a license
to operate a house of prostitution, and the sole authority to make, alter and rescind all necessary
ordinances or regulations setting forth the terms and conditions upon which such licenses may
be applied for, the terms and conditions under which such licenses shall be granted, revoked,
limited or canceled, and any and all other ordinances or regulations necessary regarding the
conditions under which said houses of prostitution may be allowed to operate.

B. The Board has the sole authority to cancel and rescind any and all such licenses for cause, after
hearing, as provided in this chapter, without refund of any monies previously thereto paid by, or
for, such license.

Section C (9) and (10) read as follows:

9. The issuance and acceptance of a license shall constitute an undertaking and agreement by the
licensee and his agents and employees, and specifically including employees that are registered
under section 9.20.140 of this chapter, that they will be bound by the terms, conditions and
provisions of this chapter, and any regulations as may at any time hereinafter be made, enacted
or adopted by the Board, and shall include a consent to, and an acknowledgment of the power
and authority of, the Sheriff, Health Officer, District Attorney or any other duly authorized
agents thereof, to enter the premises to which the license applies, at any time during the day or
night, without reservation, and to have access to any and all persons within or on the premises,
or any part thereof, for the purpose of examining the premises and ensuring compliance with the
terms of this chapter, and that withholding access or in any way inhibiting or limiting access to
the premises as described hereinabove by the licensee, his agents and employees, shall
constitute cause for the Board to revoke, suspend, or rescind the license, or to take other action
as the Board deems appropriate.

10. No applicant has any right to receive a license, and any license issued and received is a
revocable privilege personal to the holder thereof, and such holder acquires no vested right
therein or thereunder, and the same shall not be transferred without prior approval of the Board.

On Thursday, March 1, 2018, Code Compliance Officer Amanda VanHouten came to Love Ranch to
conduct an inspection. She was refused entry by Zack, and she left the property. Under the above Code,
this refusal to allow her to enter the premises constitutes a violation of Nye County Code, and
jeopardizes your license to operate the brothel. I would caution that any future act could result in your
license being revoked for violation of the Code.
18-026-DL (L) Page 5 of 5
March 9, 2018

If you have any questions about this letter, I am happy to discuss them with you. In the meantime, if
you bring me information which shows you are compliant, I will be happy to review it and bring it
before the Board if appropriate.

You can reach me by at phone (775) 751-4249, fax (775) 751-4324 or by email at llacy@co.nye.nv.us.

Sincerely,

L. Darrell Lacy, Jr.


Director of Planning

Attachments: As Stated

DL/cs

CC: Tim Sutton, Nye County Manager


Brett Waggoner, Asst. Planning Director
Amanda VanHouten, Code Compliance Officer
Angela Bello, Nye County District Attorney
Ron Grider, Nye County Building Official
Rebecca Bruch, Erickson, Thorpe & Swainston, LTD.

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