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Dec. 05, 2008
Copyright © Las Vegas Review-Journal

Lake Las Vegas will seek OK to abandon golf course

By JOHN G. EDWARDS
LAS VEGAS REVIEW-JOURNAL

Lake Las Vegas, the 3,600-acre Henderson community that filed for Chapter 11 bankruptcy in July, is giving up on the Falls Golf Course.

The debtor intends to ask bankruptcy Judge Linda Riegle for permission to abandon the golf course, setting the stage for foreclosure by the holder of a $15 million loan secured by the Tom Weiskopf-designed golf course.

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Frederick Chin, president of Lake Las Vegas Joint Venture and affiliated companies, in November reported to the judge that the loan amount exceeded the value of the golf course. He also said the company was losing money on operation of the golf course and would lose even more money if it closed the course and just maintained it.

The lender, Carmel Land & Cattle Co., filed a response to Chin's proposal on Tuesday, agreeing to the abandonment but criticizing the debtor companies.

Chin's declaration reverses the debtors' position earlier that the Falls and Reflection Bay Golf Courses were key to restructuring Lake Las Vegas, according to the Los Angeles' law firm of Irell & Manella, which represents Carmel.

The Vineyards at Lake Las Vegas, the affiliate that owns the course, originally borrowed $24 million from Wells Fargo Bank. In October 2007, the loan went into default and the loan was acquired by Carmel Land & Cattle Co.

Vineyard was allowed to use some of the proceeds of a loan obtained after the bankruptcy filing for the Falls.

Despite efforts to make the course profitable, Chin said the golf course is expected to lose $1 million monthly between August 2008 and July 2009.

Vineyard has been unable to negotiate release of the property to Carmel since Vineyard decided to abandon the property in August, Chin said.

Some residents of Lake Las Vegas paid for the ability to play golf at the Falls and Reflection Bay, Chin said. Guests of the Ritz-Carlton Lake Las Vegas Hotel get preferred tee times and rates at the Falls.

Chin said Lake Las Vegas "will endeavor to offer similar arrangements" for hotel guests and the residents with golfing privileges.

Attorneys for Carmel criticized the Lake Las Vegas proposal.

The bankruptcy judge will hold a Dec. 12 hearing on the proposed abandonment of the Falls.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

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Randall Reese wrote on September 20, 2009 11:46 PM: FYI: Lake at Las Vegas Joint Venture, LLC and its affiliates - The Golf Club at Lake Las Vegas, LLC and SouthShore Golf Club, L.L.C. - filed a motion on Friday seeking court authority to reject all existing agreements for memberships at the SouthShore Golf Club at Lake Las Vegas.

More details on the motion: http://www.netdocketsblog.com/2009/09/lake-at-las-vegas-seeks-to-reject.html


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Lake Las Vegas homeowner wrote on December 08, 2008 10:35 AM: Fred Chin

lets see now:

1. jan 1- chin and atlon (shell company with no experience and money) make deal with hedge fund that includes a 750K golden parachute. Fred Chin, with no money, buys this lake.
2. feb- chin tells all that he'll get money to fix all the problems and pay all subs, just keep working.
3. april- chin bk's this lake after owning it for 4 months (hmmmm, seems like a plan)
4. april- chin stops paying people
5. april- chin makes a deal for over 120million to run this mess. judge approved and chin uses 80 million to pay hedge fund and doesnt pay the 20-30 million owed to vendors (more wall street clowns get paid).
6. August- chin starts his abandonment of the lake.
Future to watch--(is this the plan?)
7. june 09- chin will have abandoned the hotels, all golf courses and his declarant obligations (the lake, pipes, landscape, project oversight, underfunded associations--everything!).
8. july- hedge fund pays off chin to go away (750K)
9. july- hedge fund forecloses everyone and blames fred.
10. that night- hedge fund and fred, over an expensive glass of wine, congratulate themselves.
Both groups go away and homeowners get the short end.
great!



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Joe Mass wrote on December 06, 2008 02:36 PM: I don't think it is a surprise to anyone who is familiar with Las Vegas. The huge LLV project's viability has always been in question, being so far from the Strip. Sadly, it is one of the first steps towards a much needed golf course contraction. Approximately 5 of the 30+ courses in Las Vegas are no longer operational. Look for no less than 7 more to do the same over the next two years.


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Jack Ryan wrote on December 05, 2008 03:33 PM: Hey Mark~
Those rural counties have been sucking tax money from Clark County all these years, it's about time they give something back, water in this case. Our poor hick cousins in the country are all too willing to take our property tax money to fund their schools and their communities, but should we tap into their water supply to keep Clark County growing and consequently the tax money flowing their way, they begin to cry them a river. Ah, Jim Gibbons and his base.


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Joe Bama wrote on December 05, 2008 01:16 PM: Sometimes i have to go in there for work, the first time was 7 years ago and i always think, more money than brains.


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Mark$ wrote on December 05, 2008 11:05 AM: This so-called Falls course at LLV epitomizes what is creepy about golf in the desert. There is a big dopey "water feature" which is nothing more than fake Disneyland type rocks piled up on a barren hillside, and not even hidden nearby is a huge electric pump (sucking up electricity) that powers the phoney waterfall. When you realize that Nevada wants to spend billions decimating our rural counties stealing their water for things like this outlandishly stupidly not-even-pretty "attraction", you get a feel for the lunacy of what we are doing to serve up ourselves for the idyll-rich country-club crowd of America.


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John the janitor wrote on December 05, 2008 10:13 AM: Hey Dave-
Why so angry? Oh I know, blame George Bush for the fact that you probably bought more house than you can afford. Or was it the evil banks or realtors? Yep, those damm rich "fat cats"


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DR J wrote on December 05, 2008 10:00 AM: The service at LLV is lousy, the staff seem to care less about customers and why in the world do you need TWO golf courses there??


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TimeRanger wrote on December 05, 2008 09:59 AM: Just imagine the amount of water that would be saved if both the golf course and the lake were allowed to dry up and blow away


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Albert B. wrote on December 05, 2008 08:56 AM: You've got to wonder about all those high dollar houses that look out over the golf course. Doing away with the golf course should result in a savings in water, but what happens to the grass/weeds that remain? The pro shop and restaurant? They shaved the hills across the entrance to LLV, and then everything stopped. Nice view of nothing. LLV is a complete disaster, and the City of Henderson allowed this joke to happen. Like Vantage Lofts and the stripped foothills of Black Mountain. The city is starting to look like the badlands-but hey-the public hacks are fat, happy-and employed....


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