Las Vegas owes $30M in back interest in Badlands case, judge rules

A judge on Thursday ordered the city of Las Vegas to pay nearly $30 million in back interest to the developer who had intended to build a sprawling housing project on the defunct Badlands golf course.

The fees account for a roughly $48 million judgment against the city for a 17-acre plot of land, according to the court order signed by District Court Judge Jennifer Schwartz.

And after Friday, if Las Vegas doesn’t satisfy payment for the $47,990,000 it owes in that case, daily interest will accrue to the tune of $21,121.53, at least through the end of the year.

Schwartz also awarded the developer $468,632 in back taxes and other fees.

“The city manager and the city attorney continue to pursue a settlement with the developer regarding the pending Badlands litigation,” Las Vegas officials wrote in a statement, noting they were aware of the latest ruling. “The city attorney will seek direction from the City Council members about whether they want to appeal this latest ruling to the Nevada Supreme Court.”

Four lawsuits in various stages of litigation and appeals have led to judgments now surpassing $267 million in favor of EHB Cos., which is led by its CEO Yohan Lowie.

The legal battle began shortly after Lowie purchased the 250-acre golf course off Alta Drive at Rampart Boulevard in 2015, where he intended to build housing.

Residents of the adjacent Queensridge neighborhood had opposed the development.

Judges in three cases involving different sections of Badlands golf have ruled that the city illegally “took” property by not allowing EHB to exercise its land-use entitlements and develop homes on the land.

A possible settlement of $64 million in 2022 collapsed hours before it was set to be discussed publicly in City Hall.

Lowie alleged at the time that the city had tried changing the terms of the agreement at the last minute.

‘Financial disaster’

The Badlands issue was a contentious topic in a debate Wednesday between the two candidates vying to replace Mayor Carolyn Goodman.

Councilwoman Victoria Seaman and former U.S. Rep. Shelley Berkley both said they would push to settle the matter out of court, while Seaman added that she hoped negotiations would prove fruitful.

Attorney Jim Leavitt, who represents EHB, told the Las Vegas Review-Journal that the company hadn’t heard from the city in about two months, but that it remains open to those discussions.

“The city of Las Vegas can end the interest and end these cases by sitting down, negotiating and coming to a reasonable resolution,” Leavitt said.

Las Vegas has not publicly disclosed how it intends to pay for the judgments.

Leavitt previously said the city was poised to take over the golf course as it pays the verdicts.

During the mayoral debate, Seaman suggested the city could turn around and sell the land for development.

Berkley on Wednesday contended that Seaman — who’s been the lone voice in the City Council publicly calling for a settlement — hadn’t done enough.

Meanwhile, Seaman accused Berkley, who lives in Queensridge, of only caring about the issue when she decided to run for mayor.

“Today’s decision brings the City of Las Vegas closer to financial disaster for its taxpayers,” Seaman wrote in a statement. “As I’ve been saying since before being elected to the city council, it is time for everyone to come together to resolve this situation to protect our residents. The time for delaying and hoping for miracles is over; we need strong leadership and a settlement now.”

Berkley wrote in a statement Thursday that: “It is unconscionable that the taxpayers of Las Vegas have to bear this immense burden due to the ongoing Badlands litigation.”

She called for a “swift resolution.”

“We must not let our taxpayers bear these financial burdens any longer,” Berkley said. “If elected mayor, I am committed to finding a fair resolution to end this controversy.”

Pending cases

The city in May defended the lawsuits in a statement, arguing that it exercised its land-use authority, and that it had attempted to settle the cases in good faith but that EHB wanted a high compensation when it had purchased the land “for far less.”

“Nevertheless, the city remains open to finding a settlement that is agreeable to the developer and to the tax-paying residents of Las Vegas,” the statement said.

In April, the Nevada Supreme Court upheld a judgment against the city of another $48 million for a 35 acres.

Las Vegas had paid a fraction of that verdict, Leavitt said.

Judge Anna Albertson is expected to rule in September on fees for a $141 million judgment involving 65 acres, said Leavitt, predicting that the “interest is going to be significant.”

A case for the remaining 133 acres is moving forward, Leavitt said.

“Frankly, the city of Las Vegas should be willing to have those negotiations as interest continues to run daily because of all of these verdicts,” Leavitt said.

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