Las Vegas Sun

March 29, 2024

Stalled NLV development files for bankruptcy protection

Park Highlands

Steve Marcus

The Park Highlands housing development in North Las Vegas has filed for Chapter 11 bankruptcy protection. The developers may be able to restructure their debt and resume building when the economy improves.

Sun archives

Planned development

The stalled Park Highlands master planned housing development in North Las Vegas has voluntarily filed for Chapter 11 bankruptcy protection.

Ground was broken in 2007, but work has since been halted on the project, which planned for 16,000 homes on 2,675 acres northeast of Elkhorn Road and Decatur Boulevard. With a Chapter 11 filing, the developers may be able to restructure their debt and resume building when the economy improves.

Led by Southern Highlands developer Olympia Group, the project initially attracted participation from homebuilders D.R. Horton, American West, Standard Pacific and Astoria. D.R. Horton had bought about 20 percent of the acreage for $127.8 million, but later sold its interest in the project, Moody's Investors Service said.

Olympia bid $639 million for the land at a Bureau of Land Management auction in 2005.

As the economy weakened, work was halted with no homes being built. Proposed casinos to serve the development also have not advanced past the proposal stage, while the Clark County School District and the city of North Las Vegas have followed the lead of the developers in delaying their own projects in Park Highlands.

Friday's filing in U.S. Bankruptcy Court for Nevada by the development partnership, November 2005 Land Investors LLC, said the company has an estimated 50 to 99 creditors owed a total of from $100 million to $500 million and that assets also total $100 million to $500 million.

Major creditors include Western States Contracting of North Las Vegas, owed $1.16 million for development services; the city of North Las Vegas, owed $221,074 for development services and G.C. Wallace of Las Vegas, owed $61,309 for development services.

Moody's today lowered the probability of default rating of November 2005 Land Investors LLC to "D," meaning the company is in default on some $224 million in bank debt.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy