VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
Issue link: https://www.ifoldsflip.com/i/28760
COURTS LOCAL EXPERTISE YOU CAN COUNT ON Commercial Specialists has managed and leased offi ce, retail, and industrial properties in the Las Vegas Valley for over 25 years. We offer the kind of experience that is needed in today’s challenging market. Lenders, institutional investors, trusts, businesses and individual investors have depended on us...and so can you. Homebuilder Accused Of Hanging Coyote Springs Out To Dry By Buck Wargo staff writer The developer of Coyote Springs northeast of Las Vegas has fi led a lawsuit against Pardee Home s alleging the builder has reneged on its agreements to proceed with the master-planned development. The lawsuit fi led in Clark County District Court is a refl ection of the state of the region’s new-home market that has tanked over the past four years. Filed by the Las Vegas law fi rm Pisanelli Bice, the lawsuit alleges that Pardee failed to complete custom- lot improvements for the 43,000-acre development designated to have 159,000 homes. Pardee is the master developer for all single-family and multifamily homes and had an option to purchase land every year. The lawsuit also alleges that Pardee in November stopped work on infrastructure improvements, which included a sewer treatment and water treatment plant. Pardee also stopped work on a golf clubhouse and notifi ed the developers in December it wouldn’t continue, the lawsuit alleges. Pardee says the development didn’t have suffi cient water available . The demand for new homes has dropped considerably since 35,2911 homes were sold in Las Vegas in 2006. That number of homes dropped to 19,462 in 2007 and barely hovered above 5,000 homes in 2009 and 2010. It may not reach that amount in 2011 at the current pace. Coyote Springs was based on the premise that skyrocketing home prices in Las Vegas would prompt buyers to be willing to drive 50-plus miles to buy a more affordable home. But the median new - home price in Las Vegas has fallen from $328,580 in 2006 to $206,844 in 2010. The median price of existing homes has fallen from $285,000 in 2006 to $118,656 in 2010, according to SalesTraq. In a 2007 interview , Coyote Springs developer Harvey Whittemore said Pardee could pull out of the deal at some future stage but doubted the company would. “They could, but it’s highly unlikely,” Whittemore said. “They have so much invested in the property right now.” County records showed that Pardee paid $25.5 million for 3,605 acres in 2006. Whittemore said at the time Pardee had more than $100 million invested in the project. Pardee Division President Klif Andrews released a public statement say ing it doesn’t comment on legal matters and added, “Pardee Homes remains committed to developing Coyote Springs as a residential master-planned community, and the Coyote Springs golf course remains open to all for public play.” SECOND PURE NIGHTCLUB HOST PLEADS GUILTY TO TAX CRIMES By Amanda Finneganstaff writer A second former host who worked at Caesars Palace’s Pure nightclub has pleaded guilty to tax crimes stemming from a 2008 IRS raid at the nightclub for its tipping and cash handling policies. Ali “Shawn” Olyaie, who worked as a VIP host at Pure, pleaded guilty before U.S. District Court Judge Kent Dawson to one count of fi ling a false federal individual income tax return for the 2006 tax year, the Department of Justice and IRS announced today. KEVIN DONAHOE, CSM / DAVID BURNS 702.364.0909 RECEIVERSHIPS MANAGEMENT | LEASING | BROKERAGE Olyaie worked as a host at the club in 2005 as well as 2006 and received cash payments collected at the door from patrons trying to bypass the line, disclosed at his hearing. The payments were collected, pooled and generally distributed on a weekly basis to a number of Pure managers, door personnel, VIP hosts and others including Olyaie, according to the Department of Justice. Sentencing is set for June 29, 2011. On Nov. 9, 2010, Richard Chu, another VIP host at the nightclub, pleaded guilty to fi ling a false individual income tax return for 2006 after he didn’t report the tips he received from patrons at Pure. Chu is awaiting sentencing. In February 2008, the IRS sent agents to investigate Pure Management Group and its former managing partner, Steve Davidovici, as part of a criminal investigation into the club’s cash- handling policies.