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StumbleContractor wants to foreclose on PH Towers Westgate; developer disputes claims
Published Tuesday, May 11, 2010 | 10:02 a.m.
Updated Tuesday, May 11, 2010 | 3:35 p.m.
PH Towers Westgate
The developer of the new PH Towers Westgate timeshare and hotel development in Las Vegas on Tuesday disputed allegations it owes the general contractor $19.3 million for construction costs — and said it’s the builder that owes the developer millions of dollars.
Tutor-Saliba Corp. filed a foreclosure lawsuit in Clark County District Court on Monday against Westgate Planet Hollywood Las Vegas LLC, charging $19.3 million is due under a 2007 contract valued at about $495 million for the 52-story, 1,200-room development linked to the Planet Hollywood resort and Miracle Mile Shops mall.
The lawsuit says Tutor-Saliba on April 8 filed a lien against the property for the $19.3 million, that the lien was served upon Westgate and that Tutor-Saliba is now entitled to foreclose on the project and that its claim is superior to claims of lenders against the project.
Clark County Recorder Office records show the Tutor-Saliba lien is one of at least five active liens filed against the project since November 2009. The others were filed by Waco International West, Patrick Callender, Conti Electric Inc. and Component West LLC.
Privately-held Westgate Resorts Ltd., which is based in Orlando and has projects around the country including in Orlando, Miami and in Park City, Utah, said in a statement it will vigorously fight the lawsuit and that the liens filed against the project by parties other than Tutor-Saliba are duplicative of the Tutor-Saliba lien.
"We have exhausted every effort to work cooperatively with Tutor-Saliba to resolve these issues. We have previously provided Tutor-Saliba a well-documented position that has been independently verified by a third-party construction management firm and proves that not only are these claims totally without merit, but in fact Tutor-Saliba owes Westgate in excess of $18 million. In addition, Tutor-Saliba signed an agreement subordinating its claim to the lenders on this project and therefore has no right to pursue this course of action. We not only intend to vigorously defend these claims brought by Tutor-Saliba, but also seek recovery of millions of dollars in claims due to Westgate, including overcharges, credits due for unperformed work, liquidated damages for untimely performance and failure to comply with the plans and specifications of the project," said the statement by Mark Waltrip, chief operating officer of Westgate Resorts.
Tutor-Saliba is owned by Los Angeles-area construction company Tutor Perini Corp., which is also trying to collect $500 million it claims to be owed for work on MGM Mirage's CityCenter, is in litigation over unpaid invoices and alleged construction defects at the One Queensridge Place condominium project in Las Vegas and is a creditor in the Fontainebleau Las Vegas bankruptcy.
"What has now become evident is that Tutor-Saliba is exhibiting a pattern of pursuing claims for monetary sums after a project is complete and attempting to bolster their position by filing unwarranted litigation and self-serving press releases, as recently evidenced by their parent company’s claim for almost $500 million on the CityCenter project," Waltrip said. "It is equally important to note that over the past 28 years, Westgate has built over 12,000 units across the country and we have a well-established reputation for treating our contractors fairly."
PH Towers Westgate, which opened in December, has been described by its owner as the largest single timeshare building in the world and the first timeshare resort to be fully integrated with a major resort and casino.
A planned second phase would lift the room total to more than 2,700 units and the total cost to about $1 billion, but development of that second phase is years away because of the recession. Currently, Westgate said, about 20 percent of the PH Towers Westgate rooms have been sold as timeshares and the rest are used has hotel inventory by the Harrah’s Entertainment Inc.-owned Planet Hollywood resort.
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Yet another massive, oppressive, ugly blue glass building that was dreamed up during the boom years and never should have been built. Sadly it will now scar the Las Vegas skyline forever, whether it sits empty or not.
They should just foreclose on the entire City of Las Vegas, sell off all the properties to SEPARATE owners and start all over. This way we get rid of the corporate monopolies, crappy gambling odds, horrible hotel service, and get back into a competitive Las Vegas resort environment..
Lets get this unit foreclosed for pennies on the dollar so that the new owner can sell units at affordable prices.
What? You mean they can't pay because no one is buying these Timeshares? Impossible! :p
Don't worry, City Center is coming this year with 10,000 new jobs. And also, LLV is here.
Easy fix. Just add a giant operating neon flush lever & turn it into the worlds largest toilet. Most of the design is already in place. Watch all the money being flushed down the drain. This thing was dead on announcement.
"Maybe they will turn off that classless red beacon on the top of it."
Doubtful. All brothels use a red beacon.
If this stands you can expect the same to be done to City Center very soon.
I wonderful how many people wish they can place Las Vegas in a time machine and go back 20-30 years and 'JUST LEAVE IT ALONE'.
steve7952, funny how the saying "Money is the root of all evil" has never been more true, hunh?
This will be moved to federal court, which will side with the lenders. There is no way the courts are going to say a construction company has a superior claim than a federally insured bank. Banks don't get to lose money because that means the government loses money.
They deserve what they get. We had a deal with them for a timeshare, long story, but they reneged on the deal and we got all of our money back. I bet they wish they hadn't screwed us now!
Seems like a pattern here..Tutor-Saliba is the offshoot company of Tutor - Perrini..the same knuckleheads that built CC. Seems everyone is not paying Tutur because of construction problems...mmmo ya think??
Comment removed by moderator. Comment was in all caps.
The negative comments are a bit funny in my opinion. A lot of talk when you don't know the facts. People are still buying timeshares because they are vacationing. " Same money "
That's the hottest building on the strip. Yes, having financial difficulty, but who isn't? This company pays a lot of our bills & i thank GOD for my job there everyday. So, for you to say that they should just use it as a toilet bowl, would put a lot of us out of jobs. Are you going to put food on my table for my children?
As far as " the beacon " at the top.. that's the most beauiful view you've ever seen on the strip, obviously you don't know because you probably can't afford to stay there...
As far as the family who bought, i highly doubt they reneged on the deal. you probably didn't go fourth with the deal, & i highly doubt you got all of your money back. doesn't make sense.
Everyone needs to look at the positives as well of what this company has done for people. It's changed their vacation lifestlye from crappy hotels to a beautiful resort. Those who are in financial difficulty because of this company should not put the blame on someone else. You got yourself in that position...
Have a wonderful day.
geenab65,
The saying is not "Money is the root of all evil" It's "The Love of Money is the Root of all Evil" Big difference.
This is the second major lawsuit with Perini on new buildings. Is it them? Or, is it City Center and Westgate?
All the mega corporations that are here in town running these casinos and timeshare companys essentailly sold us "Granny's Cure All Elixir" claiming that building new casinos, hotels and timeshares would be a good thing for all of us. Well, lets see what has happened. City Center is a joke. They're being sued by Perini for not paying. The property has not once ever had a 100% occupancy rate. Not once. Fountainbleau is just sitting there waiting to be finished...because it ran out of money. Echelon brought the demolition of the iconic Stardust, and it barely got off the ground before construction halted, because of lack of funds (But yet they are trying to purchase some of the stations properties), and now Westgate is being sued by the very people that built it? Does anybody else see a pattern here?
The city that we all live in and love doesnt need anymore hotels, casinos or timeshares. "But they bring jobs, and increase tourism" Really? City Center brought jobs..and the unemployment rate is still above 13%. What we need here are industry jobs, jobs that are stable and that dont rely on tourism and tourist dollars. I dunno. To me, it just makes too much sense. All these corporations saw were dollar signs in the short term, and failed to not only think long term, but about the people that live in this community
glad i could make you laugh " who's laughing now"
hopefully your place isn't being foreclosed on....... wouldn't want to be stuck without that beautiful view of the BEAK.
when our developer builds- HE DOES IT RIGHT!
my family is just fine. we sell a lot :)
"said the statement by Mark Waltrip, chief operating officer of Westgate Resorts"
Chunky says:
Mark used to be an extremely fair and decent guy but it looks like too much of David has worn off on him! C'mon Mark... is this what you've become now?
Half the people here have ZERO idea what they are talking about.
I work at PH and whether or not you think that timeshare is a good or bad deal, the fact of the matter is that the building is indeed beautiful inside (take a look at the slide show on this page), and that with Harrahs taking over operations of the casino and the regular PH hotel it is a good place to be located right now.
If the towers were as bad as half the people say they are, would Harrahs comp their Seven Diamond guests with rooms there?
Doubtful that they would.
Timeshare sells because people who can get financed for timeshare have money to spend on vacations. They are the ones that still work and did not screw themselves into oblivion being just plain greedy with adjustable rate mortgages they really couldnt afford.
The banks are still financing timeshare, so who would you want to believe is a little more tuned into the status of the project, Tudor or the financers of the project, the ones that are suing everyone?
If you cannot afford the product, do not take the tour.
If you want to take the tour and spend your money on it and cannot afford the bills, how is that different than people that purchase high end automobiles or "toys" like high end electronics or 4x4 quads that they cannot pay for? It is no different.
So stop complaining.
Westgate employs close to a thousand people in las vegas. They indirectly employ hundreds more on the strip.
Let he who is without sin cast the first stone.
Thanks.
alwaysbeclosing is right btw.
they do sell... a lot.
Well, if you have the anatomy of a female, and some silicon, then yeah, westgate has done a lot for your family, or if you basically sold your soul, then they may help, but in that case, you are only as good as your last deal. I really feel sorry for the helpless women who will be out of a job and their "assets" won't do them any good, what you gonna sell then? The storm is still brewing, it's gonna get a lot messier.
@Ntchwaidumela
Are you SERIOUS?
Did you know that of the top sales reps at the PH towers, most are over 35 and MALE?
This is the problem... You refuse to admit that in the real world, rewards are given out to those that work hard and earn something for themselves.
PH, Marriott, Hilton et all... You are ALWAYS as good as your last sale.
Hell, Tom Brady is as good as his last game. This is the way life goes.
If you want to be a downer, go elsewhere. If you want to be a whiner, welcome to the new Obama America. You'll fit in just fine and be given some free money, eventually however "free" is a very subjective term.
Chunky says:
You're all off-topic! The story is about Westgate not paying their bills and now the transparent attempt Mark Waltrip is making to defend themselves. This is classic WGR business culture and M.O. of David to weasel out of their bills and beat smaller companies out of money due to them.
The history of this company and it's business tactics to beat vendors out of money due is legendary. Seach public records in any or every market they are in.
It is appearent Tutor-Perini and Tutor-Saliba claims aganist City Center and now Planet Hollywood Towers smells of desparation from the construction company based in Los Angeles California. Reaching out for public support is not going to work. The Las Vegas residents have no good feelings toward a company who has a history of poor work on major projects and lack of safety for workers. I doubt if we see Tutor-Perini or Tutor-Saliba being offered another major construction project in Las Vegas-ever!