$286M settlement forces city of Las Vegas to scrap projects, implement hiring freeze

The city of Las Vegas implemented a hiring freeze, offered buyouts and scrapped “a number of capital projects” to help offset a $286 million settlement with the would-be developer of the Badlands golf course.

Deputy City Manager Sabra Newby confirmed the cost-cutting measures in a public meeting Thursday with the Assembly Committee of Government Affairs.

Newby said the city had “committed to not do layoffs,” adding that positions related to public safety were exempt from the hiring freeze.

“As folks leave, we identify whether or not those positions should be filled,” Newby told state lawmakers. “But all other (open) positions are certainly scrutinized very heavily and most likely going to be frozen.”

The measure was expected to be in place for two years, she added.

The city employs about 3,800 people, with roughly 1,500 of them in public safety, according to a city presentation.

Those in public safety include firefighters, city marshals, Municipal Court, corrections officers and their support staff, Newby said.

City Manager Mike Janssen alluded to the freeze in an internal memo to employees last summer, noting that a committee was created to explore its implementation.

A $636 million deal to resolve the yearslong litigation with EHB Cos. is all but done. It’s expected to close in the coming weeks, according to the city.

Under a nonbinding agreement approved by the City Council in December, Las Vegas will buy the former golf course from EHB for $636 million and then sell the 250-acre golf course and a clubhouse to Lennar Homes for $350 million. Yohan Lowie, EHB’s CEO, would keep the remaining $286 million and settle three remaining lawsuits that alleged the city “took” his property by not allowing him to build an expansive housing project Lowie had planned.

A fourth lawsuit was resolved last year for $64 million.

Lennar Homes plans to build 1,480 upscale residential homes on the site.

The Las Vegas Planning Commission approved its land-use entitlements last month. The matter next moves to the City Council, which can vote to approve the project as as early as Feb. 19. The proposal faced pushback from adjacent Queensridge community residents, who also had opposed Lowie’s project.

EHB endorsed the new development and signed onto the applications.

On Thursday, Newby and Mayor Shelley Berkley spoke to the Assembly committee about the city’s proposed bills being considered during the Legislature, which kicked off Monday.

The Badlands discussion came up when committee chair Assembly member Venicia Considine asked about the city’s staffing levels.

“The city is set to put forward about $250 million,” Newby said about the settlement. “As you might imagine, $250 million is a lot of money in any situation.”

Contact Ricardo Torres-Cortez at rtorres@reviewjournal.com.