Soon, he hopes, the MonteLago Village dockside attraction will be teeming with patrons.
Hope and optimism are the words Lake Las Vegas business leaders use to describe the mood within the bankrupt community that was hit with two more pieces of bad news this month.
On Feb. 8, the 349-room room Ritz-Carlton Lake Las Vegas announced it would close May 2. A week later, Casino MonteLago, Lake Las Vegas’ only gaming establishment, said it was shutting down March 14.
The two announced closings just added to the community’s other major financial issues.
In July 2008, the Atalon Group, which had taken over ownership of the Lake Las Vegas development seven months earlier, filed for Chapter 11 bankruptcy protection with more than $700 million in liabilities.
Last year, two of the resort’s three championship 18-hole golf courses closed.
Today, those empty golf courses don’t paint a positive picture. Lake Las Vegas visitors have to pass the shuttered courses on their way to MonteLago Village, the community’s retail and dining district.
Golf course owners decided against overseeding with rye grass in the winter, and the Bermuda grass fairways have gone dormant. The landscaping now appears dead.
Taylor, whose business rents sailboats, kayaks and small boats to guests and residents and operates a pair of yachts for cruising the lake, still has his spirits up.
“You have to be optimistic about the future because that’s all we really have right now with this economy,” he said. “None of us wanted to see the Ritz and the casino go away. This is still a beautiful place to come out and enjoy and, in a matter of time, I think it will come back.”
Patty Allen, a five-year resident of Lake Las Vegas, isn’t so sure.
She recently downsized, moving from a home in SouthShore to a condominium in the Luna di Lusso section.
“We really love it here, but we’re all pretty worried,” said Allen, watching her children ice skate on a Saturday afternoon at the MonteLago Village’s floating ice rink. “I know a lot of people that have lost their homes and, with the Ritz-Carlton closing, I’m worried about the shop owners in the village. It’s very scary right now.”
MonteLago Village is a separate entity from the soon-to-close casino. The shops are owner-operated and the outdoor Mediterranean-themed center is 91 percent occupied. Most shop owners referred media inquires about their business prospects to Maurice Talley, commercial manager for MonteLago Village.
Those willing to talk said they were operating on a “business as usual” stance despite the pending shutdowns.
“Nothing changes for us,” said Joseph Serrano, manager of The Auld Dubliner Irish Pub and Restaurant, one of the few businesses that appeared busy on an overcast February afternoon. Customers watched Winter Olympics and college basketball telecasts while enjoying Irish ales.
“We’re just moving forward,” Serrano said. “It’s all we can do.”
Talley, who has been on the job for 17 months, called the MonteLago Village business owners “hopelessly optimistic.” Year-round events are still planned for the village, and the ice rink managers, who closed seasonal operations on Feb. 20, plan to return in the winter.
Talley said with the Ritz-Carlton and the casino shutting down, the village’s customer focus would be on two areas, residents of Lake Las Vegas, which has about 1,700 single family homes and condominiums, and Henderson and Las Vegas residents.
“Optimistic pretty much describes how we feel,” Talley said. “When the first golf course closed, some people thought the sky was falling. We’ve always been focused on driving our own traffic here. The hotels are secondary.”
MonteLago Village recently opened the Black Pepper Grill restaurant, and Talley said the center is pursuing other tenants.
One resident of SouthShore’s Bella Vivente community thinks the bankruptcy filing will help the community.
Valerie Treaster, who has lived at Lake Las Vegas for five years, believes operations of the development need to be “restarted” and the potential court restructuring might give the community a fresh beginning.
“We’re a very tight community and everybody here wants to see it succeed,” Treaster said.
City of Henderson leaders are concerned about the Ritz-Carlton and Casino MonteLago closings, which will send about 527 workers into unemployment.
Henderson Mayor Andy Hafen said he is troubled by the loss of jobs, but he doesn’t think Lake Las Vegas is on the verge of collapse.
He considered the closings a temporary setback, driven entirely by the broader economic crisis. When the economy rebounds, Hafen expects new owners to purchase and reopen the hotel and casino.
“Let’s face it, they’re struggling out there,” Hafen said. “But whoever ends up with those properties is going to get a pretty good deal.”
Until then, Hafen said, the residents and remaining businesses at Lake Las Vegas need to hang on and ride out the downturn.
“We’re going to come out of this, and we’re going to come out stronger,” Hafen said.
Bill Burney, general manager of the SouthShore Golf Club, the only golf course still operating at Lake Las Vegas, has adjusted to the harsh economic times. The private course, which once had an initiation fee of $175,000, has waived the fee. Membership, which was originally exclusive to just Lake Las Vegas residents, is now open to all residents of Henderson and Las Vegas. Monthly golf fees are $625 a month.
Burney also worked out deals with several hotels to provide golf course access for their guests.
“We’re healthy and vibrant,” Burney said. “That’s the main point we’re trying to get across. In a perfect world, we would have preferred to remain private. That was the game plan at the time.”
The exclusive golf course, which was designed by golfer Jack Nicklaus and has been used for televised golf tournaments, opened the first nine holes in 1995 and the second nine a year later. The clubhouse opened in 2000.
At its peak three years ago, SouthShore had 293 members. The number was down to 165 when Lake Las Vegas went into bankruptcy. Since then, golf membership is back to 193.
“Our ownership (Touchstone Golf Management) is committed to the community,” Burney said.
Lake Las Vegas’ residential market is also challenged.
On the community’s Web site, three new housing developments are touted — two by Pardee Homes with prices starting at from $500,000 to $800,000, and a Toll Bros. plan starting at $300,000.
According to local real estate research company SalesTraq, in 2009, only 29 new homes were sold in Lake Las Vegas with a median price of $517,000. During the year, 124 homes went into bank-owned foreclosure. Eighty-three single-family homes were sold, 54 through foreclosure sales with an average price of $353,875, and 29 owner-to-new owner sales with an average price of $361,000.
Condominium sales fared better. There were 219 sales in 2009 with an average price of $135,000. The 152 foreclosure sales averaged $130,000 while 67 owner–to-new owner sales averaged $150,000.
Allen, the Lake Las Vegas resident, said she worries the market will continue to tumble unless the Ritz-Carlton is taken over by a new hotel operator.
Lake Las Vegas has one remaining hotel, the 493-room Loews Lake Las Vegas. A property spokeswoman said the nongaming property will remain open and is performing ahead of last year’s numbers.
Casino MonteLago was seemingly troubled since it opened in 2003 when it was owned by an Alaskan Indian tribe. It needed an emergency hearing by Nevada casino regulators to keep it afloat in 2007.
The city of Henderson will lose out on gaming tax revenue when the casino closes, but city officials could not pinpoint how much.
Even after the Ritz-Carlton and Casino MonteLago close, the city will still receive about $172,000 a year in property tax revenue from the properties and MonteLago Village.
Henderson’s other financial links to Lake Las Vegas surround two dozen separate agreements the city made with developers over the years.
Under one agreement, the city is obligated to keep $30 million on reserve for nine more years to pay for any storm water improvements or cleanup that environmental regulators might order in connection with the lake. When the 30-year agreement runs out in 2019, the city is free to use the $30 million, or whatever is left over, on something else.
Henderson also has three local improvement districts up to ease construction costs for roads, utility lines and other public infrastructure there.
When Lake Las Vegas filed bankruptcy, it was delinquent on more than $2.2 million in improvement district payments to the city. Ultimately, though, the city’s bonds are secured against property at Lake Las Vegas.
“I don’t think we’re on the hook for anything out there,” Hafen said
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