LAS VEGAS (KTNV) — The bad news for local taxpayers just keeps flowing out of the defunct Badlands golf course.
City taxpayers are already footing a $286 million bill after leaders settled multiple lawsuits filed by former landowner Yohan Lowie. Now, county taxpayers could be on the hook if a new lawsuit succeeds.
VIDEO: Darcy Spears sits down with attorney representing Yohan Lowie about new Badlands lawsuit
It might seem like common sense that if the government takes your land, you no longer have to pay property taxes on that land.
But Clark County doesn't seem to get that, according to a lawsuit filed by Lowie/180 Land Company. The former Badlands owner is suing Clark County for taking millions from him that he says he did not owe.
"It doesn't seem right, it doesn't seem reasonable, it's not logical, it's not legal," said Lowie's attorney, Jim Leavitt, who says the issue is simple: Clark County took his client's money illegally. And they have to give it back.
"Clark County entirely ignored the District Court orders and the Nevada Supreme Court Badlands decision, which was right on point. And it ignored United States Supreme Court precedent that taxes are not due on public property."
On behalf of his company, 180 Land, Lowie sued the City of Las Vegas, alleging it improperly denied development of homes on the Badlands site, largely due to opposition from neighbors.
After a series of high-profile losses in multiple courts, including the Nevada Supreme Court, the city settled the cases for $636 million. A portion of that settlement came from selling the land in question to homebuilder Lennar, with city taxpayers paying the remaining $286 million.
All courts involved in the litigation found Lowie wasn't liable to pay property taxes because the city illegally took his land.
"And in fact," Leavitt said, "the government had invited the public onto the property and publicly stated that the property was a park and open for recreation."
As 13 Investigates reported in 2019, Badlands was being used by joggers, dog walkers, skaters, and bike riders. The dark drainage tunnels book-ending the property were populated by the homeless. At night, it became a hotbed for drug use and crime.
The Nevada Supreme Court decision in the Badlands case from March 2024, "An owner who is dispossessed from [their] Land when it is taken for public use is no longer obligated to pay taxes."
"And Clark County refused to comply with Nevada law and reimburse those taxes," Leavitt said, which shows that the county is just as inclined as the city to play fast and loose with taxpayers' money.
"As my client says, they never miss an opportunity to miss an opportunity."
Leavitt says Lowie and the City of Las Vegas tried to work with Clark County to get their money back, but the county refused, forcing them to file suit to recover approximately $8 million.
"And it's not just taxes," I pointed out. "It's fines and penalties that they assessed on top of the taxes."
"Absolutely!" said Leavitt, "which brings up another reason why Clark County's conduct is so egregious here."
When Nevada courts told the landowners they didn't owe property taxes after a certain date, they stopped paying. But that didn't stop Clark County.
"So, what we have here is a situation where Clark County is ignoring the Badlands decision entered by the Nevada Supreme Court and then punishing the City of Las Vegas and the landowners with fines and penalties of approximately $200,000 for complying with the Nevada Supreme Court opinion."
Leavitt believes the new lawsuit will force the county's hand to reimburse the taxes and penalties, "And the county's going to have to pay attorneys' fees, costs and interest, which will add approximately $5 million."
We asked Clark County why they're doing this and exposing taxpayers to more liability, but they didn't answer, saying they're "unable to comment on pending litigation."
Leavitt says the county also has not yet responded to the lawsuit in court.
"My only opinion on why that could be is that Clark County does not know how to respond at this point in time."
We asked him what Lowie—who's currently out of the country—would say if he were here.
"He would tell the county to do the right thing."
The city's settlement of the Badlands cases represents the largest legal payout in Las Vegas history, depleting general fund reserves, freezing jobs and delaying capital projects.
