Meridian hotel proposal moves ahead

The Meridian Luxury Suites condo development has taken another step toward restarting its hotel operation, which was shut down by the county last month. The Clark County Planning Commission approved a tentative map of the 671-unit site, but some owners say final approval of a conversion into a condo resort might not come in time to save them from foreclosure.

Close to 50 Meridian owners were at Tuesday's commission meeting to urge approval of the initial map to convert the near-Strip residential property into a commercial subdivision. Many asked the county to speed up final approval, allowing hotel operations to resume soon.

Meridian owner Dan Somers read from a letter, signed by some 200 residents, saying rent and lease payments are being withheld because of the county cease-and-desist order. He said 100 employees had been laid off because of the hotel operation's closure, and 1,000 reservations had been cancelled.

"While the county goes through its long and onerous procedures to approve the property and issue the appropriate documents, homeowners are suffering the financial burden from a suspension of overnight rentals," he said. "The recent cease-and-desist letter will cause a disruption of 60 to 120 days."

The delay could cost owners $18,000 per unit, and some investors have multiple units, Somers said.

The Meridian is 98 percent investor owned with 14 owner-occupied units, said Michael Mackenzie, president of the Meridian Private Residences Homeowners Association.

In late June, the county issued misdemeanor citations for rooms rented overnight in violation of the transient lodging ordinance and for operating the hotel without a business license. A deadline of early July was set for ceasing hotel operations.

Meridian manager Rebecca DeSmet had two court dates for the citations in Las Vegas Justice Court: Aug. 19 to answer code compliance charges and Sept. 16 for the licensing citation.

Many unit owners in the troubled complex were more concerned with what would happen to their investments than the legal fallout, as the resort-condo conversion process proceeds. The county gives the applicant two years from Tuesday's approval to complete requirements, which includes getting 100 percent of the owners to sign off.

One resident-owner, Kath-leen Mannix, has said she will not. Mannix, who paid for her unit in full, is a focal point of anger for other owners who question her motives. She has criticized Meridian officials for mismanagement in kicking out long-term tenants to do hotel improvements and claimed the homeowners association has violated state law.

Mackenzie, a vice president with former Meridian operator Chicago-based American Invsco, is among the most vocal in blaming Mannix.

"She said, 'Buy me out for $600,000 for my unit,' and she only paid $300,000," he said.

Mannix said she had requested the buyout of $600,000 for her unit, legal expenses and repairs, done at the advice of her lawyer, but never expected to receive it.

"She said to write the (demand) letter and ask for $600,000 and (Meridian management) would bargain us down," Mannix said.

The resident-owner said she later dropped her buy-out price to closer to $300,000 but Mackenzie only offered to pay her half that amount. Mannix said she also "promised" to report what she claimed were illegalities on the part of the HOA and management.

"I promised to stop them if they wouldn't let me leave," Mannix said. "If I wanted to live in a hotel, I would have bought into a hotel."

The planners, who unanimously approved the tentative map, said they had no power to expedite the process.

One homeowners association board member, Richie Cohen, said Mannix is being blamed unfairly.

"They were running the hotel operation without permits, and they told the HOA and owners they had permits," he said after the meeting of Meridian management. Some owner-investors traveled from California and Chicago to ask the planners to expedite approval.

Investor owner Ferri Wolf, a retired San Diego doctor, said Wednesday she is losing $5,000 a month on her unit and might have to go into foreclosure as soon as October because of the hotel shutdown. She said the county is losing out, too.

"If (the units) are foreclosed on, what will happen to the tax money? We were housing people and making money."

Contact reporter Valerie Miller at vmiller @lvbusinesspress.com or 702-387-5286. Reporter Joan Whitely contributed to this report.