Las Vegas Hit with $30M Court Ruling Over Badlands Golf Course Puts City’s Finances at Risk

A Looming Financial Crisis: Las Vegas Faces Unprecedented Judgment

In a stunning twist that could reshape the financial landscape of Las Vegas, the city has been ordered to pay nearly $30 million in back interest to a developer whose vision to transform the defunct Badlands golf course into a sprawling housing project was thwarted. This ruling, handed down by District Court Judge Jennifer Schwartz, comes on the heels of a $48 million judgment against the city for a 17-acre parcel of land, thrusting Las Vegas into a fiscal crisis that could have far-reaching implications.

Mounting Debt: The High Cost of Delay

With the clock ticking, Las Vegas faces an additional financial burden if the city fails to pay the $47.99 million judgment by Friday. Each day of delay will cost the city an additional $21,121.53 in interest, compounding the already massive debt. Judge Schwartz also awarded the developer, EHB Cos., led by CEO Yohan Lowie, $468,632 in back taxes and other fees, further escalating the financial stakes.

The Unraveling of a Legal Quagmire: Four Lawsuits and $267 Million in Judgments

The legal entanglement surrounding the Badlands golf course has become a nightmare for Las Vegas, with four lawsuits resulting in judgments that now surpass $267 million in favor of EHB Cos. The battle began in 2015 when Lowie purchased the 250-acre golf course off Alta Drive at Rampart Boulevard, intending to develop housing. However, the city’s refusal to allow the development has led to a series of legal defeats, each one deepening the city’s financial woes.

The Community’s Resistance: Queensridge Residents vs. Development

The development plans were met with fierce opposition from residents of the adjacent Queensridge neighborhood. Judges in three separate cases have ruled that the city’s actions effectively “took” property by preventing EHB from exercising its land-use entitlements. A potential settlement of $64 million was within reach in 2022 but collapsed at the last minute, leaving the city and the developer locked in a costly stalemate.

Political Fallout: Badlands Litigation Dominates Mayoral Debate

The ongoing Badlands litigation has become a flashpoint in the race to replace Mayor Carolyn Goodman. In a recent debate, Councilwoman Victoria Seaman and former U.S. Rep. Shelley Berkley both expressed a desire to settle the matter out of court. Seaman, who has been the most vocal proponent of a settlement on the City Council, emphasized the need for decisive action to prevent further financial damage to the city. Berkley, who resides in the Queensridge neighborhood, has been criticized for only engaging with the issue now that she is running for mayor.

The Developer’s Standpoint: An Open Invitation to Negotiate

Attorney Jim Leavitt, representing EHB Cos., has made it clear that the developer remains open to negotiations, despite not having heard from the city in two months. Leavitt underscored that the city could end the accrual of interest and resolve these cases by sitting down with the developer and reaching a reasonable settlement.

A City at a Crossroads: How Will Las Vegas Pay?

As the legal and financial pressures mount, Las Vegas has yet to publicly disclose how it plans to pay for the judgments. During the mayoral debate, Seaman suggested the city could take over the golf course and sell the land for development, a move that could potentially recoup some of the losses. However, this proposal has been met with skepticism, particularly from Berkley, who argues that Seaman has not done enough to push for a resolution.

The Threat of Financial Disaster: Leaders Sound the Alarm

Councilwoman Seaman issued a stark warning, declaring that the latest court decision brings Las Vegas “closer to financial disaster for its taxpayers.” She called for immediate action, stating that the time for delays is over and that strong leadership is needed to settle the matter. Berkley echoed these sentiments, describing the situation as “unconscionable” and vowing to find a fair resolution if elected mayor.

Looking Ahead: The Next Legal Battles on the Horizon

The legal battles over the Badlands golf course are far from over. In April, the Nevada Supreme Court upheld another $48 million judgment against the city, this time for a 35-acre parcel of land. Judge Anna Albertson is expected to rule in September on fees related to a $141 million judgment for 65 acres, with significant interest likely to be added. Meanwhile, the case for the remaining 133 acres is still moving forward, with no end in sight.

The Path to Resolution: Is Settlement the Only Way Out?

As interest continues to accumulate daily, the pressure on Las Vegas to find a resolution intensifies. The city’s leadership faces a critical decision: continue fighting in court and risk further financial devastation or negotiate a settlement that could finally bring the Badlands saga to a close. The outcome will not only shape the future of Las Vegas but also serve as a cautionary tale for municipalities across the nation facing similar development disputes.