Badlands developer willing to settle suits with city over stalled project

The would-be developer of the defunct Badlands golf course remains open to settle ongoing lawsuits against the city of Las Vegas, a company representative said Thursday.

Four suits filed by EHB Cos. — which alleged the city illegally took land — are in various stages of litigation.

Three separate Nevada judges have ruled against the city, and two of them set judgements totaling more than $80 million.

A proposed $64 million settlement was scuttled a year ago after the city tried to change the terms of the agreement, developer and EHB CEO Yohan Lowie has said.

The City Council on Wednesday voted to allocate up to $1.5 million to a trio of outside law firms to continue its legal battle this fiscal year, which began on July 1.

“If the City truly wanted to settle the four lawsuits, it would agree to mediation with the mayor and as many councilpersons present that complies with the open meeting laws,” an EHB representative wrote in a statement to the Las Vegas Review-Journal. “The Landowners have always been willing to pursue this course.”

EHB said the company previously attended a meeting with a mediator, but that not a single member of the City Council showed up.

After Lowie bought the land, the city had approved entitlements for a housing development, but the project stalled at City Hall over disagreements over zoning, prompting the lawsuits beginning in 2015.

Since then, the suits have cost Las Vegas taxpayers more than $5.5 million, mostly in legal fees.

“The City of Las Vegas has been illegally denying the Landowners the use of their property for over (eight) years,” EHB said. “The City has spent millions of City dollars on legal fees, and, after yesterday’s vote, it is apparent it intends to continue spending millions more to further its desire to deprive the Landowners of their constitutional right to use their property.

‘Kicking the can down the road’

EHB and Councilwoman Victoria Seaman, who represents the ward where Badlands is located and who is running for mayor, have continuously pushed for a settlement.

The 2022 proposed resolution encompassed land-use entitlements, a $49 million court-ordered judgement from one of the lawsuits and $15 million for building a drainage facility at the 250-acre property, according to city documents. In exchange, EHB would dismiss the lawsuits without liability.

Negotiations broke down hours before the City Council was set to discuss it in a public meeting.

“As developers the Landowners hope has always been to maintain ownership of their property and develop it into a beautiful community that would provide much needed jobs and homes,” EHB said. “The city, however, has made it clear it has no intention of allowing the Landowners to do so.”

A Las Vegas spokesperson this week said that the city does not comment on pending litigation.

Before the vote for the attorney fees, Seaman said that she refused “to throw good money after bad.”

“We have 14 civil attorneys on the taxpayer payroll that need to work on a resolution to settle this litigation,” Seaman added. “I have made every attempt to work towards that resolution. We need to come together and stop kicking the can down the road.”

Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com. Follow @rickytwrites on Twitter.