Mayor calls lien on land downtown ‘a blip’

Monday, Aug. 11, 2003 | 11:06 a.m.

A lien has been filed in District Court against the 61 acres of vacant former railroad property in Las Vegas that is to be transformed into a modern downtown development.

If not resolved, pending litigation could result in delays in developing what Mayor Oscar Goodman says is the keystone of his plan to revitalize downtown and that will secure his own legacy.

The lien was filed July 17 in Clark County District Court by Las Vegas Paving Corp. The company says it is owed nearly $154,000 by Las Vegas Stampede, its promoter, Professional Wagon Racing Inc., and the city which approved the chuckwagon racing event that was held Sept. 19-22.

Goodman, who has taken charge of identifying potential developers for the project, says that the lien has not quelled interest of developers and will not result in delays to the project going forward.

"I know clouds on liens and this is no cloud -- it is just a blip," said Goodman, who worked as a lawyer before he became mayor.

"Right now the issue is over the actual amount owed. The money will be paid -- no sweat, no risk to the 61 acres, no delays (in the project), no big deal."

The lien specifically names City Parkway IV and V, the nonprofit companies the city set up to protect it from environmental lawsuits after the city took possession of the longtime Union Pacific Railroad yard from a holding company in a land exchange deal hammered out by Goodman in 2000.

The lien alleges that on Aug. 8, 2002, Professional Wagon Racing Inc., entered into a contract with the City Parkways to lease the 61 acres and that the city required the company to post a $100,000 surety bond from Indemnity Insurance Co. of North America to protect the city.

Goodman said incidents such as this illustrate why the city requires such bonds for projects.

The lien says Professional Racing set up the Nevada corporation Las Vegas Stampede, which hired Las Vegas Paving to build a sand and earthwork track.

The suit says about 4,000 cubic yards of paving materials were ordered "only days before the planned event" forcing the paving company to "work overtime to break down the material and compact it."

The additional work "increased the cost of the project considerably," the suit says, noting the total bill is $153,957.

"Despite repeated requests, defendants have failed to pay plaintiff in full for the work performed," the suit says, noting the notice of a lien was filed Jan. 17 in the Clark County Recorder's office.

The paving company says legal action was taken "to foreclose its lien within the six-month statutory period."

James Barker, attorney for Las Vegas Paving, declined to comment because the litigation is ongoing.

According to the Secretary of State's office, the corporation status for Las Vegas Stampede is revoked. The name of the resident agent for the corporation, M. Barnes, is listed at an address on Aspen Oak Street. The phone number for the address is no longer in service.

"Despite repeated requests, Indemnity Insurance Company of North America has refused to pay the bond amount," the suit says, naming the insurance company as a defendant.

The Las Vegas City Attorney's office has referred all questions about the lien to Deputy City Attorney Tom Green. A secretary in Green's office said he was out of town on vacation until Tuesday and could not be reached.

Efforts to contact Professional Wagon Racing Inc., in Canada were not successful. A website for the organization was not found via an Internet search.

Prior to the September event, the Sun reported that Professional Wagon Racing Inc., was "a Canadian company created specifically for developing the Las Vegas Stampede." The company made the announcement for the Las Vegas event in Calgary, Canada, in March 2002. A phone company operator for Calgary said there was no listing for that company in Calgary or surrounding areas.

Chuckwagon racing came to Las Vegas amid much hype -- a sport with thousands of Canadian followers who hoped an event in glittery Las Vegas would springboard it into a sport with considerable U.S. support.

"The crowds were good for the first three days, but not as good on Sunday because it was 110 degrees," said Clare Church, secretary for the Canadian Professional Chuckwagon Association of Alberta. It provided the 18 wagons, drivers and horses, but was not one of the promoters and is not a defendant.

"It was the first time we had come to Las Vegas to compete and the first time we had worked for that company," she said.