LAS VEGAS (KTNV) — The city council took a big step forward Wednesday toward ending the battle over Badlands, which has become the most expensive legal fight in Las Vegas history.
It's not a done deal yet, as the vote approved non-binding terms to settle the lawsuit and sell the Badlands property to another developer. Contracts for that are still being finalized. And though it's the biggest step in years, it's one that will cost a whole lot more than if the city would have settled the Badlands cases the first time around when an offer was on the table two years ago.
You can read the terms that were presented to city council below.
In 2022, the city could have settled Badlands for $64 million. Today, it's $636 million.
"For the constituents that have been asking us every single day for years now, 'When is this coming to a resolution?', I want to say this council has been actively working towards a resolution the entire time," Mayor Pro Tem Brian Knudsen said in the council meeting.
This council is not the same council that started the fight with landowner Yohan Lowie, but they have voted to appeal court rulings despite multiple losses before multiple judges.
"Faced with the financial impact of the settlement before you today, I think it's fair to say that every public servant in this building wishes that certain events and court decisions had gone differently. But they did not," said City Attorney Jeff Dorocak.
The city's battle with Lowie over developing homes on the defunct Badlands golf course began when council members denied permits, preventing the residential development for which the land is zoned.
Lowie sued and the city lost every case, with courts ruling the city illegally took Lowie's land. After losing its first appeal in an unanimous Nevada Supreme Court decision, in August, the city paid off a $64 million judgment.
"In all reality, as a city, we face financial risk of at least $450 million if the remaining litigation continues adversely towards the city," Dorocak said.
However, taxpayers still have a jagged pill to swallow as Wednesday's vote provides for another $286 million from city coffers plus $350 million more.
"The $350 million will come from the city's sale of the Badlands property and clubhouse to a corporate entity of the well-known national homebuilder, Lennar, who has a proposal to develop the property with approximately 1750 residential units," Dorocak told the council.
WATCH: Las Vegas City Council discusses Badlands terms on Wednesday
That kind of development is what started the city's fight in the first place. When a handful of wealthy Queensridge homeowners who didn't want the golf course behind their homes turned into housing, they leaned on council members to push back, which is how this all ended up in court.
"None of the city council members who considered the applications to develop the Badlands property remains on the dais today," Dorocak pointed out.
But as recently as August, in an interview with 13 Investigates, City Manager Mike Janssen was still defending the former council members' actions.
"Rampart and Charleston is really busy. I'm sure you've been in the Rampart and Charleston intersection. It probably sees 100,000 cars a day! What's that going to do to quality of life? And so, every mayor and council across the country, they try take a proposal like we had and take into account quality of life issues that the project may bring, whether it's for fire support, police support, for schools, traffic. For those reasons, I think the decisions we made were based with best intentions," Janssen said.
13 INVESTIGATES: 'Staggering sum' of Badlands judgments to impact Las Vegas jobs, projects, property
As former city officials and Las Vegas residents have pointed out, the legacy of those former council members is a stain on the city's reputation and an unprecedented burden on taxpayers.
During public comment at a September city council meeting, taxpayer Karen Livingston said, "This is not your money! It's the taxpayers' money. The city has failed miserably in its stewardship."
The settlement terms show the folly of the fight as it essentially takes us back to where we were when this all began. The city is allowing large-scale residential development on the Badlands property, which is what Yohan Lowie wanted to do it the first place. Had they let that happen then, we wouldn't be in the hole for hundreds of millions of dollars now.
Badlands is in City Councilwoman Victoria Seaman's ward and Seaman has been dedicated to resolving the issue since taking office.
In a statement today, Seaman said, "It has been a long and arduous journey to reach this point. Throughout my tenure, I have consistently advocated for a settlement, as I believe it serves the best interests of the taxpayers. Today we have the opportunity to approve a term agreement to begin the process to settle Badlands. Therefore, I urge my colleagues to consider what is most beneficial for the taxpayers."
Lowie, Lennar and city leaders are polishing the remaining details of the agreement this week.
The council will hold off on a final settlement vote until February 5 in case the parties are not able to get the agreements done.
You can read more about that vote in city documents below.
You can see our full series of stories at ktnv.com/badlands.
