Failed venture files racketeering claims against Desert Passage

Tuesday, May 21, 2002 | 11:13 a.m.

A proposed restaurant and nightclub that failed to open because of financial difficulties filed state racketeering claims last week against the Las Vegas Strip's Desert Passage mall and its parent TrizecHahn Development Corp.

Kass Bah Las Vegas LLC countersued Desert Passage and international real estate giant TrizecHahn in Clark County District Court on Thursday in response to their lawsuit in November accusing Kass Bah of failing to pay rents and failing to pay Desert Passage for the costs of discharging numerous liens filed against the restaurant and nightclub.

Kass Bah disputed Desert Passage's claims in Thursday's lawsuit, saying the defendants reneged on an agreement to provide $1.3 million in financing to help expunge the liens and help Kass Bah complete construction of its project.

Kass Bah said Desert Passage had agreed to "partner with Kass Bah in providing ($1.3 million) in financing because of the loss of many tenants and the dire business climate in the mall in the Spring of 2001."

Kass Bah, which said the defendants took its "business concept, interior design plans, trade secrets and the substantially completed premises and began shopping the opportunity" to its competitors, said the defendants' similar treatment of several other mall tenants constitutes a "pattern of crimes related to racketeering."

Desert Passage said it is still in negotiations with other potential tenants for the former Kass Bah location. Desert Passage is part of the Aladdin hotel-casino megaresort. The Aladdin itself is operating under bankruptcy protection.

Desert Passage attorneys could not be reached for comment on the allegations.