A Golf Course in Las Vegas Faces Pending Foreclosure
The fate of a golf course in Las Vegas is hanging in the balance as it faces impending foreclosure. A bankruptcy judge (federal) is yet undecided about allowing a Texas company, Carmel Land & Cattle Co. permission to foreclose on a golf course just outside Las Vegas. The loan involved amounts to $15 million. There are two golf courses in Lake Las Vegas resort and one of them, Fall is facing foreclosure trouble. Judge Riegle deferred the final order till the 15th of January 2009. There are concerns because a water pumping station that is essential for eastern Henderson development is situated inside the premises of the property to be foreclosed. The previous owner of the resort, Ron Boeddeker had guaranteed the $15 million credit and foreclosure proceedings will cost him a lot.
An attorney representing Lake Las Vegas opined that the foreclosure course was of no consequence to the bankrupt companies as keeping the same entailed financial burden for the debtors.
Tom Weiskopf was the designer of the Falls. It had been built at a cost of $30 million. In 2008 the loss had been $1.9 million and it is apprehended that this amount of loss will increase to $2.9 million in 2009. This is according to paper filed by the executive vice president of Lake Las Vega, Robert LaForgia.
The director of Real Estate Transactions and Developments of Boeddeker’s Transcontinental Corporation, John Plunkett Jr. said that the golf course was not running at a loss but was rather making profits. He had based his calculations on the dues of the club and other financial adjustments.
Byrm Lee Jr., the legal representative of Transcontinental said that if the golf course were surrendered many would lose their jobs. It would also negate the chances of the finances of Lake Las Vegas being built up again.
The Lake Las Vegas resort stretches across 5.6 square miles and lies approximately 17 miles south east of Las Vegas strip. In it are a casino, two hotels and 1,600 residential units that have been completed.
The Lake Las Vegas Joint Venture sought out the protection of Chapter 11. The report stated that there were debts ranging from $500 million to $1 billion. The assets added up to $100 million and $500 million. Two hundred and sixty workers are employed – most of them being stationed at the two golf courses, Falls and Reflection Bay.
