Badlands deal closes in Las Vegas; upscale housing project coming

The city of Las Vegas announced Wednesday that a final resolution had been reached in the Badlands case, ending a longstanding legal battle and making way for a new development on the 254-acre golf course.

“All parties agreed this resolution is in the best interest of the city of Las Vegas and its citizens,” Mayor Shelley Berkley wrote in a statement about the $636 million deal.

Under the agreement, the city has paid $350 million to acquire the whole defunct golf course, funds that will fully be reimbursed by Lennar homebuilders, which is planning to build nearly 1,500 upscale residences.

In turn, developer Yohan Lowie’s EHB Cos. has dismissed three outstanding lawsuits that alleged the city essentially “took” the land by denying him development rights to his own property.

The city will also pay EHB $286 million to settle the lawsuits. It paid a $64 million judgment to resolve a fourth last year.

Clearing the way

City officials had warned that continuing to fight the pending litigation could have cost the city upward of $450 million.

“This conclusion clears the way for new homes to be built on the disputed parcels,” Berkley said.

“EHB and the city of Las Vegas recognize and appreciate each other’s efforts and cooperation, as well as Lennar’s cooperation, in reaching this resolution, which provides a path forward for the development of the property and the community.”

The City Council last month approved Lennar’s proposal for its 1,480-home project. The applications were co-signed by EHB, which endorsed the development.

Councilwoman Victoria Seaman, whose Ward 2 encompasses the golf course, said she was “pleased” with the resolution.

“However, I must express my disappointment that my earlier warnings went unheeded, as they could have saved taxpayers hundreds of millions of dollars,” she wrote in a statement to the Las Vegas Review-Journal.

Until recent months, Seaman was the lone voice in the City Council calling for a lawsuit settlement, at least publicly.

A Lennar spokesperson declined to comment, and an EHB attorney could not immediately be reached for a reaction.

The protracted controversy began shortly after Lowie bought the property in 2015. Neighboring residents came out against his project, and disagreements at City Hall about zoning practically killed his proposal.

The Queensridge residents have also spoken out about Lennar’s project, at least as it was proposed, expressing concerns about density, traffic and the number of schools in the area.

Plan for paying

The $286 million price tag has prompted the city to establish austerity measures, such as offers of buyouts, freezing of open positions and delays of capital improvement projects.

Las Vegas officials recently told Nevada lawmakers that the city was not planning any layoffs to offset the settlement costs.

The city outlined how it will pay for it.

Nearly $113 million would come from the city’s general fund reserves and operational cost savings; $87.5 million from liability fund and internal service fund reserves; $49.7 million from delayed capital improvement projects or bonds; and funds from the sale of Cashman Field.

The city placed the closed sports complex for auction in which a Lennar affiliate placed the highest bid of $36.15 million. The City Council affirmed the sale Wednesday.

“It is my hope that this experience serves as a crucial lesson for all municipal governments and politicians: the importance of recognizing and protecting property rights,” Seaman wrote. “Let us move forward with this knowledge, ensuring a better, more responsible governance for our communities.”

Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.