Developer Molasky trying to salvage son's project


Las Vegas developer Irwin Molasky is putting his assets in play to rescue his son's contracting company and a condominium project in the Summerlin community.

But Molasky's deep pockets didn't stop the Nevada State Contractors Board from denying a request Wednesday for conditional reinstatement of the contracting license for Pacific Contractors, which is owned by his son, Steven.

Pacific owes seven subcontractors $1.2 million for work on the 280-unit Altessa condos.

The board suspended Pacific's license in October when owner Steven Molasky failed to show up for a hearing and failed to provide company financial statements. He was present Wednesday.

Pacific attorney John Naylor said the financial problems revolve around one particular condo project that got in trouble during construction when the housing market started to slide. The lender, U.S. Bank, issued a default notice and scheduled a foreclosure auction for March 12.

Irwin Molasky formed a new company, Asset L.A., to negotiate with U.S. Bank and finance the purchase of the Altessa project at auction. The agreement has been tentatively approved, Naylor said.

"They're only talking to Mr. Molasky and not anyone else about buying this property," he said. "The negotiations are done. We don't anticipate any deal stoppers. Moving (the auction date) to March 12 was a calculated business decision so when Mr. Molasky bids on the project, the financing will be there."

Molasky has placed $1.3 million in escrow with Nevada Title Co. to cover the liens and plans to finish the project using Pacific Contractors to build it, Naylor said.

Molasky's primary holding company, PH Management LLC, has liquid funds exceeding $10 million in various bank accounts, he said. A brief recess was taken for the parties involved, including contractors board attorney David Brown, to further discuss the assets privately.

After the meeting, Brown said $4 million in mechanics' liens have been placed against Altessa, a figure that he had not previously seen. The seven claimants are C&W Enterprises, Original Roofing Co., Labor Max Staffing, Lunas Construction Cleanup, Carrasco Concrete, Major Builders and Alco Landscape. In addition, R.W. Stucco claims more than $300,000 owed.

Contractors' board member and hearing officer Guy Wells wondered whether there might be other subcontractors who will come forward with claims.

Naylor said Pacific has a list of 20 or 30 vendors and suppliers. Settlement agreements have been reached with the seven subcontractors whose claims are wrapped into the $4 million figure.

About two-thirds of the remaining claims are "legitimate" and being negotiated, Naylor said.

"We fully intend to meet our obligation with all of those," he said. "We just don't have the money."

He said Irwin Molasky is willing to be the indemnitor for Altessa and any future Pacific projects, but payment to the subcontractors is contingent upon successful purchase of the project and temporary reinstatement of Pacific's license.

Wells said he was "uncomfortable" reinstating the license with the unresolved issues and continued to hold the suspension until the contractors board's March 26 meeting.

"You should have the subcontractor issues resolved at that point," he said. "If everything is done, I'll reinstate the license."

Contact reporter Hubble Smith at hsmith@reviewjournal.com or (702) 383-0491.

 

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