Ruling favors Seven Hills residents in Rio golf dispute

The residents of nearly 3,500 homes in Henderson's Seven Hills development have won what amounts to exclusive membership rights to play on the Rio hotel-casino's plush golf course in the midst of the upscale community.

The general public, however, will have to stay outside and look through the gates of what is now called the Rio Secco Golf Club.

That was the ruling late Friday by District Judge Mark Gibbons after a weeklong non-jury trial watched by irate and frustrated residents and fought by 30 attorneys.

But don't dust off the clubs and throw them in the back of the Lexus just yet. It won't be until December that Gibbons determines exactly what access rights residents will have.

After buying the golf course a year ago, the Rio chose to restrict its use to casino high rollers and other guests, but that resulted in a flurry of lawsuits from homeowners and developers who had been told the course would be public.

A compromise pending Gibbons' ruling kept the course open, but the Rio set greens fees at $300 -- the second-highest in Clark County only to Steve Wynn's Shadow Creek course.

Homeowners complained that the pricey greens fees, in practice, closed the course to the public. They had contended in their lawsuits that any limitations would diminish the value of their homes.

While they have won legal access, there still is the fight to be waged over what it will cost residents to play and whether Gibbons will set the greens fees or leave that to the Rio. A firm date for that hearing will be set Friday.

Testimony during the trial was clear that homebuilders and potential homeowners routinely were told the golf course would be a high-end, daily-fees public facility -- and that apparently was the intent of the original developers.

But when the Rio bought the course, a decision was made to close it based on language in the covenants, conditions and restrictions -- commonly referred to as CC&Rs -- signed by buyers that there were no guarantees of access to the course.

Rio attorney Richard Levy said that while the master developer may have misled homebuilders, that shouldn't be the Rio's problem.

But the judge said the Rio was citing a seemingly contradictory provision in the master CC&Rs.

That section is entitled "No right to use golf course" and begins: "Each owner acknowledges that, if a golf course is constructed as a part of the project, the purchase of a lot or condominium by such owner does not confer upon such owner the right to use the golf course or any other facilities on the golf course property."

But the second part of that section states: "In order to use the facilities, each owner will be required to pay such fees and to satisfy such other conditions as may be in effect from time to time with respect to the use of the facilities."

Gibbons ruled that the second portion modifies the first, giving homeowners access to the course subject to fees that are established.

"This limits the number of people affected," the judge said. He added, "If the Rio wants to open it to the public, it can, but it is not required to."

While attorneys for the residents argued that home values would be diminished if the course weren't open, Gibbons indicated that the Rio, through its $33 million investment in the upscale facility, "did a marvelous favor for everyone" living at Seven Hills.

"It enhanced the development more than expected," the judge said.

Now homeowners will be able to experience that "enhancement" from the course itself rather than from just over their back fences.

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