EDITORIAL: Badlands settlement both a must and crushing for taxpayers

Stealing something worth $100,000 can get you sent to prison in Nevada for up to 20 years. But those responsible for costing Las Vegas taxpayers at least $250 million are unlikely to face any consequences at all.

This month, the Las Vegas City Council delayed a vote on spending between $250 million and $286 million to resolve the Badlands dispute. Both sides believe a settlement is coming soon.

It’s a high price to pay for the years the city spent thwarting the development of the now-shuttered golf course proposed by Yohan Lowie and his company, EHB Cos. City officials did so at the behest of wealthy residents in the nearby Queensridge neighborhood who opposed the new construction. That was an expensive mistake, because the city had previously zoned the golf course for residential development.

The city’s obstruction deprived Mr. Lowie of his property rights. He took the municipality to court and won repeatedly. City Attorney Jeff Dorocak estimated the city could be on the hook for up to $650 million. Mr. Lowie has said he has the evidence to bring a “multibillion-dollar” lawsuit against the city.

This was the obvious outcome that city officials willfully ignored. In 2015, we wrote, “Golf course views not guaranteed” after Badlands had been sold. Five years later we noted that, “What should concern local taxpayers is the possibility that the city has opened itself up to a takings claim under the Fifth Amendment. ... And a 2019 Supreme Court ruling on property rights makes it much easier for landowners such as Mr. Lowie to gain relief.”

While some council members — most notably former members Bob Beers and Victoria Seaman — warned of the disastrous financial consequences of the city’s intransigence, the council as a body repeatedly ignored calls for a settlement. Instead, they spent well more than $5 million on outside counsel fighting Mr. Lowie in court. They apparently forgot to hire attorneys who were familiar with the Constitution and the Takings Clause.

But it’s even worse. Most elected and city officials didn’t care that they were risking hundreds of millions of taxpayer dollars. Helping their donors or pursuing petty personal vendettas were more important than being a wise financial steward. In situations such as this, elected officials often figure they’ll have moved on before the bill comes due. Unlike in the private sector, public employees rarely lose their jobs for egregious errors.

Even if the Badlands fiasco is settled before newly elected Mayor Shelley Berkley takes office, she should insist on accountability for those who pushed the city down this disastrous path. While the settlement is necessary and long overdue, it’s a crushing blow for Las Vegas taxpayers and a glaring example of bureaucratic insulation and hubris.