LAS VEGAS (KTNV) — The City of Las Vegas has started paying down its massive price tag in the ongoing legal battle over the defunct Badlands golf course.
To date, the city owes developer Yohan Lowie more than $235 million. That price tag increases by more than $22,000 every day on interest alone, according to figures Lowie's legal counsel provided to Channel 13's chief investigator, Darcy Spears.
On top of the accruing interest, taxpayers are still going to end up on the hook for more than $235 million. That's because the Badlands case is actually four separate court cases, and we don't yet know the ultimate judgment in two of those.
How did we get here? Spears has been following this case for almost seven years now, but here's the gist:
Despite residential zoning, the city's elected leaders prevented Lowie from developing homes on the property by denying permits, against the advice of their own staff and planning commission. That series of decisions began the legal battle that went all the way to the Nevada Supreme Court, which in April upheld a lower court's ruling that the city illegally took Lowie's land.
Earlier this year, the city set aside $60 million in taxpayer funds to start paying its costs.
So, how do those costs break down? As we mentioned, there are four separate court cases, each pertaining to a different parcel of the approximately 250-acre Badlands property.
Case no. 1: 35-acre parcel of the Badlands property
This is the judgment we just learned the city has now started to pay. It's also the case that ended up in the Nevada Supreme Court, which ruled in Lowie's favor.
The total judgment in this case — including interest, attorneys fees, costs and property taxes — amounted to about $64.1 million. According to Lowie's lawyers, the city has paid about $48.1 million of its debt in that case, with about $16 million still to go.
Interest on that judgment accrues at a rate of $1,557.79 per day, Channel 13 was told.
When asked when the balance would be paid, a City spokesperson said, "There are some details about the transfer of this parcel to the city that are still being worked out in the court. Once that occurs the city will be in a position to finalize payment."
According to Attorney Jim Leavitt, who represents Lowie's EHB Companies, the city will take title to the parcel once the judgment is paid in full. Lowie then has the right of first refusal to buy the land back at the value determined by the court, which in this case is $34,135,000.00. Should Lowie decline, the city would be free to sell the land to another buyer, Leavitt said.
Case no. 2: 17-acre parcel of the Badlands property
The total judgment in this case, as we reported last week, amounts to more than $78 million. This case is accruing interest, too, adding more than $21,000 per day to the city's legal tab.
Spears asked the city what the timeline is for paying this judgment and why city leaders are allowing the burden on taxpayers to keep increasing?
A spokesperson said, "Concerning the 17-acre case, 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."
Case no. 3: 65-acre parcel of the Badlands property
In this case, the city is on the hook for $141 million and counting. The judge has yet to determine what will be owed for interest, attorneys fees, costs and property taxes. Lowie's lawyers tell us those costs will be determined in a hearing on Sept. 3.
Case no. 4: 133-acre parcel of the Badlands property
This case is still pending, but if the previous three judgments are any indication, it could also be the priciest of the bunch.
If you combine all three previous judgments, the court determined the city owed Lowie more than $235 million for 117 acres. If the same legal arithmetic is followed in this case, that sum could easily be doubled.
Leavitt provided the following statement:
"After seven years of depriving the Landowners of their constitutional rights, the City of Las Vegas has just recently begun paying a part of the significant amount it owes the Landowners. The Landowners will continue to vindicate their constitutional rights and look forward to receiving full compensation for the remaining portion of their property that was taken without payment of just compensation many years ago."
When Spears asked the city about ongoing negotiations to settle the remaining case and the outstanding balances, she was told, "The city manager and city attorney last met in person with legal counsel for the developer on June 5. However, other forms of communication between the parties regarding a settlement have taken place within the last month, including on July 8. The city continues to work on proposals for a settlement in the ongoing litigation, and when ready, will provide them to the developer and his legal counsel."
