Lake Las Vegas marks completion of pipe work

By Jeremy Twitchell

Wednesday, July 29, 2009 | 1:35 p.m.

Lake Las Vegas’ ownership group announced today the completion of a $3 million rehabilitation project on the two drainage pipes that run beneath the resort’s 320-acre man-made lake.

Jim Coyne, COO of Lake Las Vegas, said the Atalon Group, which acquired the resort in January 2008, made it a top priority to fix the worn pipes that carry water from the Las Vegas Wash for almost two miles beneath Lake Las Vegas and into Lake Mead.

Work began last November and was completed earlier this month.

“The vitality, viability and existence of the lake is what ties our community together,” Coyne said.

When Lake Las Vegas filed for Chapter 11 bankruptcy reorganization in July 2008, the Atalon Group immediately moved to secure $127 million in loans from Credit Suisse to fund the resort’s operations for a year, including the $3 million to fix the pipes. At the time, Lake Las Vegas attorneys argued that if the pipes failed, it could drain the lake and have a catastrophic effect on the resort.

Coyne said the pipes were constantly being eroded by the rocks and other debris carried in the wash. To strengthen them, crews entered the tubes, which have a diameter of slightly less than seven feet, and poured reinforced concrete along the bottom of each tube to reduce the amount of wear and tear the pipes receive from the debris.

Coyne said the work should allow the pipes to last for 20 more years.

One of the reasons Lake Las Vegas held the press conference to announce the completion of the project was to send a positive message to residents of the community, who have faced uncertainty as the bankruptcy process works itself out, Coyne said.

“I think it’s dramatically important to let the residents of Lake Las Vegas know that we’re protecting the vitality of the lake,” he said.

The reorganization plan that Lake Las Vegas is required to create and submit to a federal bankruptcy court judge was initially expected in January, but has been continued several times as the resort works with hundreds of creditors and interested parties to come up with a plan that both the resort and its creditors can accept.

Coyne declined to say the specific reasons for the delays, but said the resort continues to work with all parties involved and is inching closer to a solution.

“Suffice it to say, this is a very, very complicated bankruptcy case, because this is a very complicated development,” he said.

Henderson Mayor Andy Hafen spoke briefly at the press conference, saying that the city is proud of the development and wants to see it succeed. After the conference, Hafen said he hoped his appearance would lend confidence to Lake Las Vegas residents.

“I hope it shows the residents of the community that we stand solidly behind the project and all that it represents,” he said.

Hafen said the city has always worked closely with the resort, including on the pipe rehabilitation process, but said Henderson has not given the resort any money. The Local Improvement District (LID) loans that were taken out to build Lake Las Vegas’ infrastructure were facilitated by the city, he said, but they are repaid solely by resort residents.

“There’s no taxpayer money doing anything out here,” Hafen said.

CORRECTION: This story was updated to correct the spelling and title of Jim Coyne, COO of Lake Las Vegas. | (July 30, 2009)