Judge’s ruling paves way for Rio golf course trial

Brian Seals

Monday, Dec. 21, 1998 | 11:19 a.m.

Judge Mark Gibbons on Friday denied a motion by the Rio hotel-casino that would have limited which Seven Hills residents have a right to play at the Rio Secco golf course.

The ruling paves the way for a trial to begin today on what fees the hotel-casino can charge residents to play on the course.

Residents in the development won access to the course in October, when Gibbons ruled that the master covenants, conditions and restrictions gave them that right.

In Friday's hearing, Rio contended that some homeowners should not have access to the course, because they gave up such rights through purchase disclosures and supplemental covenants and restrictions that did not provide for golf privileges.

The question boiled down to whether those supplemental agreements superceded the master agreements. Rio attorneys claimed the subsequent agreements that did not give residents golf privileges should stand.

But attorneys for developers and residents said Nevada law allows covenants to be altered only by a vote of residents.

Gibbons sided with the residents.

Seven Hills residents sued the Rio in 1997 after the hotel-casino bought the course and turned the links into a private operation for Rio's high rollers. Residents sued, saying they were promised when buying houses in the development they would have access to the golf course.

The residents won that argument when Gibbons ruled in their favor Oct. 9, but fees to play the course for non-hotel guest were set at $300.

The phase of the trial that begins today will center around what fee the Rio can set for the homeowners to play at the course.

Development companies involved in the suit include the Helmer Co., Granite Silver Development Partners, Silver Canyon Corp. and American Nevada Seven Hills Limited Partnership. American Nevada is controlled by members of the Greenspun family, owners of the Las Vegas Sun.