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Jul. 30, 2008
Copyright © Las Vegas Review-Journal

LAKE LAS VEGAS: Drainage feared

Owners say water could drain if bypass conduit fails

By JOHN G. EDWARDS and ALAN MAIMON
©2008 REVIEW-JOURNAL

Lake Las Vegas, a 3,592-acre development shown Tuesday in Henderson, filed for Chapter 11 bankruptcy this month.
Photo by Jessica Ebelhar/Review-Journal.




Graphic by Mike Johnson.



A section of spillway for Lake Las Vegas near Henderson is worked on Dec. 1, 1989.
Review-Journal file photo.



Workers assemble sections of the spillway for the artificial dam at the Lake Las Vegas construction site near Henderson on Dec. 1,
Review-Journal file photo.



Engineers watch water flow into the Lake Las Vegas basin near Henderson on Feb. 16, 1990.
Review-Journal file photo.

Bankrupt Lake Las Vegas is struggling to stay afloat financially, but the development's owners are worried a break in a pipeline underneath the lake could drain it and sink the community's financial future.

In a statement filed in the development's Chapter 11 bankruptcy case, Lake Las Vegas President Frederick Chin said a 7-foot conduit that carries storm and treated wastewater under the lake is in need of repair. Without the repairs, the development's centerpiece 320-acre artificial lake could drain away, Chin told the court.

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    • "While lives and property would not likely be threatened, it is possible that the open pipe would function as the equivalent of a drain in the lake, causing the water to enter the pipes and be taken out to the wash," he wrote.

    "Such an outcome would be disastrous for the project, because it would be virtually impossible to obtain the amount of water necessary to re-fill the lake, and the project would lose a considerable amount of its appeal were it built around a dry lake bed."

    Henderson Public Works Director Robert Murnane on Tuesday agreed that a pipeline rupture would drain the lake into Lake Mead and that it would undoubtedly diminish the value of multimillion-dollar homes, resort hotels and golf courses.

    Lake Las Vegas has two luxury hotels, a casino, an Italian-theme shopping and restaurant area, three golf courses, marinas and 1,600 completed residences, including one owned by singer Celine Dion, according to the Clark County assessor's Web site.

    Although Murnane agrees the loss of the lake would detract from the beauty of the community, he doesn't believe it would be catastrophic, and he couldn't point to any potential financial damage to Henderson other than the loss of taxable property value at Lake Las Vegas.

    "I don't see a ghost town at Lake Las Vegas. It's too nice," Murnane said.

    Murnane also doesn't think a pipeline rupture would cause any environmental damage at the site.

    Robert Martinez, chief of engineering and dam safety at the Nevada Division of Water Resources, said a break in the pipe could affect the dam that created the lake. Martinez, however, added that the chance of a pipe failure occurring is "way out there."

    As for assertions that a breach in the pipe would drain the lake, Martinez isn't certain about that.

    "That's their prerogative from a business standpoint to describe the situation as they see fit," he said about Chin's letter. "They are involved in a bankruptcy."

    The need for drainage line repairs and maintenance is no surprise, Murnane noted. The drainage pipes require maintenance work every 10 years, and the development company signed an agreement in 1989 assuming those responsibilities.

    Before the wash was improved several years ago, rapid currents often picked up "dirt, rocks and (even) grocery carts" and carried them downstream, Murnane said.

    High-velocity debris sometimes damaged the concrete walls of the pipe.

    There are actually two drainage pipes under the lake, but one has eroded and has been closed. The other carries the daily drainage from the wash and is also in need of repairs.

    "It's not easy because it's very long, but it's been repaired before," Murnane said.

    Repairs to the two-mile-long pipe have been delayed for more than a year because of funding issues, Martinez said.

    "If you don't do maintenance, that can lead to problems," he said

    A subsidiary of Chin's company, Atalon Group, foreclosed on the previous owners in January. The previous owners were billionaire brothers Sid and Lee Bass of Fort Worth, Texas, and Ronald Boeddeker of Los Angeles.

    The new owners are "operating it in a safe manner," Martinez said.

    Lake Las Vegas spokeswoman Sandra Sternberg said the repairs will cost an estimated $3 million and will start as soon as bankruptcy Judge Linda Riegle approves $127 million in post-bankruptcy financing, possibly at a hearing Monday.

    The repairs would take about six months to complete. Sternberg said she couldn't "begin to answer" what would happen if Riegle doesn't approve the so-called debtor-in-possession loan.

    The community's artificial lake has always been controversial since the idea of a lakeside resort in the desert was first raised some 40 years ago.

    In the late 1980's, developers obtained all the government approvals needed for their project, but critics still complained it would be wasteful to use 3 billion gallons of water for the lake. Others said it was unwise to build a dam in the main drainage channel for the Las Vegas Valley.

    The water for the lake came from Henderson's allottment from Lake Mead. County, state and water authority officials estimated at the time that about 4,500 acre-feet of water would be have to be added to the lake each year because of evaporation and seepage.

    Riegle has demanded that the debtors disclose the identity of lenders who contributed to the $127 million loan syndicated by Credit Suisse. The bankruptcy judge also questioned whether it was proper for $48 million of the money to go to pay some of the debt incurred before the bankruptcy filing.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420. Contact reporter Alan Maimon at amaimon@reviewjournal.com or 702-383-0404 Review-Journal reporter Arnold Knightly contributed to this report.

     

     



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    Andrew wrote on September 17, 2008 01:31 PM: Actually, Lake Las Vegas does increase losses due to evaporation. If the water is in Lake Mead then lake Mead is filled to a greater depth, which means less surface area. Less surface area means less evaporation.

    If surface area had no effect on evaporation, as you claim "it's the same amount of water," then why not drain Lake Mead even more and cover hundreds of square miles to a depth of 1"? You could grow rice!


    King wrote on August 03, 2008 02:35 PM: Good thing the government never sold the land around Lake Mead - that would have been nice too - lake front -- 400 yards ahead! LOL


    Dave wrote on August 03, 2008 02:34 PM: "the project would lose a considerable amount of its appeal were it built around a dry lake bed."



    DUH -YOU THINK?? THAT HAS GOT TO BE ONE OF THE DUMBEST QUOTES I'VE EVER SEEN.


    N6idf wrote on August 03, 2008 07:50 AM: "Such an outcome would be disastrous for the project, because it would be virtually impossible to obtain the amount of water necessary to re-fill the lake, and the project would lose a considerable amount of its appeal were it built around a dry lake bed."

    Really?


    Reality Check wrote on August 02, 2008 03:02 AM: Snackler, water rates in Henderson *are* already graduated. Bigger users are paying bigger rates and bills, which actually helps the City's budget so it can provide services to the people.

    As to evaporation loss being a reason to drain it and "save" water, this makes as much sense as people who think that selling their gas hungry SUV somehow helps the environment. The water would be stored either in Lake Las Vegas or in Lake Mead -- either place it will be subject to the same evaporation conditions and issues.

    As for the SUV analogy, the person who buys the gas hungry SUV Joe Green is selling is still going to drive it, it is still out there drinking gas, unless you can prove that the new owners drive it less. And if Joe Green buys a new vehicle (even a hybrid), they are actually *increasing* pollution and gas consumption with their incorrect thinking that they are somehow "doing their part for the environment."

    People need to think things through rationally and thoroughly and quit blindly buying into the media hype Joe Green's are trying to shove down our throats.

    Oh, and its the Lakes at Las Vegas Joint Venture, LLC and not Lake Las Vegas that filed for Chapter 11. Lake Las Vegas is a big development that includes nearly 2,000 privately owned properties that are not part of the bankruptcy.


    Vegas B wrote on July 31, 2008 06:39 PM: Harshaw,

    You are correct in that no one is asking the government to help out. However, you are incorrect about the association. It did not file for bankruptcy...the developer did.

    It is obvious that few people understand what is really going on.


    Mel G wrote on July 30, 2008 08:53 PM: Snakler
    I agree with the graduated water rates. Your example of water waste through pools is incorrect. Swimming pools use a fraction of the water that is used on grass. Household useage such as low flow toilets, shower heads, sinks and appliances would decrease a huge amount of waste. Swimming pools are only big water users on the initial fill, but when the water is properly drained back to the sewer it is credited back as reclaimed. I do agree with your main point.


    Mark wrote on July 30, 2008 07:24 PM: When you're thirsty, water may as well be more valuable than gold or oil...


    snackler wrote on July 30, 2008 07:15 PM: It's pretty obvious that water is on the minds of the good citizens of Las Vegas. As it should be. A long term solution would be to have graduated water rates. Keep rates reasonable for sane usage for families. Above that, the more you use the higher the rate. Want to fill your pool, pay through the nose. Build a golf course, better be rich to afford the water. This way would force most pools and golf courses out of existence and save a whole lot of water. Like most of you have said, it's a desert. Set the bar low enough so people without pools pay for wasting their water. For example. A friend of mine has 4 kids and they each change their clothes and shower 4 times a day. His wife is washing multiple loads every day. His water rates are dirt cheap yet his families water usage is breaking him. No matter who you are, waste it you will pay for it. The law of the pocketbook can work miracles.


    Disaster Waiting to Happen wrote on July 30, 2008 05:27 PM: The Army Corps of Engineers was strongly opposed to the construction of Lake Las Vegas in the first place, with serious concerns about the integrity of the berm. Off course, no amount of their concern could be offset by the elected officials lining up at the trough for their campaign contributions.


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