LV Indian tribe sued over golf resort

A golf course resort development intended to be an economic boon now has the Las Vegas Paiute Tribe facing an $8 million lawsuit.

Landmark Golf Limited Partnership sued the tribe in U.S. District Court seeking to enforce a contract calling for the multi-million dollar termination payment if the contract between the parties was canceled.

Attempts to contact Paiute officials Monday failed.

In 1992, tribe officials contacted Landmark's parent company, Oak Tree Golf and Development, about developing a four-golf course resort on Paiute land on the outskirts of Las Vegas. The 1,500-acre resort was also envisioned to have seven hotels. Oak Tree negotiated with the tribe and later assigned its rights to the project to Landmark, its affiliate.

A series of negotiations ensued and initially a 30-year agreement was reached. But as the tribe pursued tax-exempt bond financing, it found IRS Codes governing that kind of funding limited such agreements to three-year increments.

The U.S. Interior Department, which had to approve the tribe's agreement, gave its blessing to a three-year pact effective April 1, 1995.

However, that three-year agreement provided for a termination payment if the association between the parties were discontinued before five years' time.

The agreement was divided into two parts, one a management agreement and the other a business consulting agreement. The business consulting portion of the pact provided for the termination payment. Landmark contends it received oral assurances from tribe officials those two components would be connected, and that's the sticking point in the suit.

Tribe officials notified Landmark in December the management agreement was canceled effective March 1 of this year. However, the business consulting pact has not been canceled and that is the one that contains the $8 million termination clause, according to the suit.

This isn't the first lawsuit that has erupted over the golf resort development. The tribe faced off with state and Clark County government in an 18-month court fight over water rights needed for the development. An agreement was eventually reached on that in April 1996 that allowed the tribe 10 times more than what it had before, but less than what it was seeking.

archive