Judge OKs motion to cancel Mira Villa pacts

Bankruptcy Judge Bruce Markell on Tuesday approved a motion to terminate remaining contracts for buyers at Mira Villa, one of the first luxury condominium projects in Las Vegas to halt construction.

With no opposition to the motion, Markell ordered full refund of escrow deposits plus additional payments buyers made to developer Westmark for options and upgrades. Buyers must file a proof of claim for those amounts.

The motion brought by trustee Timothy Cory terminated 92 prepetition contracts or contracts written before Westmark filed for Chapter 11 bankruptcy in January 2008.

The trustee has entered new contracts with three of the buyers, attorney Laurel Davis of Fennemore Craig law firm said. She represented the trustee in court.

One buyer, who requested anonymity, said she can't imagine what it will be like for the dozen or so homeowners who move into the 113-unit condo complex in an upscale area near the JW Marriott.

She wondered, for example, who would pay the homeowners association fees with so many units empty. She also wondered what would happen to the 9 acres planned for the second phase.

Davis said the entire property is zoned, mapped and approved for no more than 216 condominium units of a style and type similar to those now under construction. Any further development will be limited to what's been approved and mapped, she said.

The trustee hired a sales and marketing firm to address pricing and related issues after construction resumed earlier this year.

Current pricing reflects a substantial reduction in price from the contract price for the pre-existing purchase contracts, Davis said. Further price reductions are not anticipated at this time.

The Mira Villa buyer said she couldn't justify the price and added that 90 other people felt the same way.

"The most repeated comment I've heard has been, 'I'd rather buy into Mira Villa when it is on the market and I know what people are willing to pay for these units, even if that is a higher price,'" she said.

Primary lenders for the $35 million construction loan are Nevada State Bank, TierOne, Colonial Bank and Aspen Financial. Nevada State Bank is the lead bank.

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